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Personal letter of advice from Ted Nicholas, author of million seller ‘How To Form Your Own Corporation Without A Lawyer For Under $75’. (1,000,000 copies @ $19.97 = $19,970,000!) A living legend in direct mail. Starting with a $90 ad, he went from his living room to a $500

Million direct response Fortune!

“Message to Friends Who Want To Become Millionaires” by Ted Nicholas

Article originally published in Ted Nicholas

Direct Marketing Success Letter, February 23, 1995.

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Message to Friends Who Want To Become Millionaires

Dear Friend:

This issue of DMSL is a real change of pace. It’s dedicated to your friends and loved ones.

As your success grows, many people will ask for your assistance on their business endeavors.

I’m sure you will do all you can to help. So to give you food for thought, I’ve devoted this issue of DMSL advising would-be millionaires!

People often approach me to help mentor their business success. For example, recently John, a friend, called. John is a mid-level manager in a large company. The conversation went something like this:

John: I’m getting bored with my job. Direct marketing looks like a great way to build wealth.

I’m interested in getting rich. I would like to learn all I can from you. Perhaps be a protégé. I know a lot of what you teach is in your books, tapes, and live seminars. However, at the moment I don’t have any money to invest in these materials and programs.

My reaction usually is to seek more information. After John granted me permission to ask some personal questions, here is how the conversation proceeded.

Ted: I notice you’re driving a new 1995 automobile. Do you mind telling me what your

payments are? John: $395 a month.

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Ted: Approximately what did you spend on your week’s vacation this past year? John: $1800.

Ted: You live in a new apartment building. What is your current monthly rent? John: $750 a month.

Undoubtedly you see where my questions lead. I wanted to get a sense of John’s values. The foregoing answers already communicate volumes about John.

I think it’s safe to say he will never become a millionaire. Not as long as he continues to think the way he does. And most Americans unfortunately share the same values.

The big problem? A profound lack of understanding of what it takes to succeed. The most important element in anyone’s potential business success is...

Education!

The price of business success is very simple. A good education.

I feel that education in the U.S. is greatly under-valued by nearly everyone. Except by super successful entrepreneurs!

This may sound self-serving. But there is no other way of communicating the reality. As a marketer of how to information, a source of constant fascination to me is that my very best customers are also the most successful. Subscribers of Direct Marketing Success Letter and buyers of my videos, audio tapes, and books, I m proud to say, are among the best-known marketers in the world. And the richest!

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The underlying reason for their outstanding success?

They value education so much they seek and pay for it.

They know knowledge about their career is an asset more priceless than gold. And, unlike money, jewels, real estate, stocks, all of which can be lost or taken away, what you know is yours forever.

Education can never be taken away. The super successful seem to instinctively know this. So they ve become perpetual students. Always interested in learning something new. Constantly reading. And listening to tapes. Seeking out seminars conducted by doers who walk the talk.

Those who are unsuccessful have bought into ideas that are not advancing their wealth

production. Instead of investing in their own knowledge, they prefer to spend their money on cars, boats, planes, apartments, vacations, gadgets, etc.

The unsuccessful are unaware of this reality. It s impossible to succeed big in any field without a lot of knowledge.

There are just two ways to get the reality tested information you need which works in the real world:

1. The school of hard knocks - trial and error method

2. Books, tapes, seminars offered by those who have proven themselves.

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Back to John. He tells me he really wants to hear my honest views. It s been said that “when the student is ready the teacher appears”. I believe John. Here, then, is the advice I gave my friend.

Ted: I’m going to give you ideas and suggestions. If you follow them your future success is guaranteed.

However, there is a catch. Your comfort level may be affected. Many ideas won t feel right at first. The recommendations are unconventional. Chances are you ve never in your life received advice like I m about to give you - from anyone. So some of it might sound strange and make you uncomfortable. That s OK. It is to be expected. As we learn and grow, our belief systems must be re-examined. And if necessary, changed.

1. The first thing you need to do on your path to success is completely stop acting on the advice of friends, relatives and teachers. However well-meaning they are, their advice

will not be helpful. Unless they are self-made millionaires. One must have lived and

experienced being an entrepreneur. Otherwise no one can understand what is required.

Indeed, you may have to find new friends. Negative ones can really hold you back. If

you have a supportive mate or spouse, terrific. If you don’t, a tough decision will have to be made. There may be no choice but to leave the relationship.

You must have support. Negative people are influential. More than you realize. Don’t

just walk away from them. Run!

2. Begin immediately to get out of debt. Since your car payments are too big in relation to your income, sell your car at once. If you can do without a car and walk for awhile, great.

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My father taught me a great lesson. Automobiles are the biggest financial liability

anyone can have. No investment you will ever make loses its value so quickly.

If you feel you need a car, get a used one. Pay cash for it. Fortunately, the U.S. is one of the few countries in the world where you can get a good used car cheap.

3. Move to a one-bedroom apartment, or look for a roommate or two to share your apartment costs. Since you are single and have a two-bedroom apartment, you can easily

slash your rent by half or more.

4. Vacation creatively. Instead of going to an expensive resort for a week, this year go to 2

or more good seminars that will advance your knowledge.

I m sure you can do more to slash overhead. You could reduce or eliminate the big

cost of interest your debts are causing. But, just by the suggested steps you will

immediately have over $900 per month! Every saved cent can and should go toward

your direct marketing education! It will be the best investment you have or will ever

make.

You can begin investing in your long-neglected but potentially most valuable asset -

Yourself

Start a success library of your own. At minimum buy these books. Study and read them as soon as you can.

Confessions Of An Advertising Man by David Ogilvy

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The Robert Collier Letter Book by Robert Collier

My Life in Advertising/Scientific Advertising by Claude Hopkins

How To Make Your Advertising Make Money by John Caples

Making Ads Pay by John Caples

The First Hundred Million by E. Haldeman-Julius

How To Make More Money With Your Direct Mail by Edward N. Mayer

The Mirror Makers by Stephen Fox

The Greatest Direct Mail Sales Letter Of All Times by Richard S. Hodgson

The 100 Greatest Advertisements by Julian Lewis Watkins

Million Dollar Mailings by Dennison Hatch

Atlas Shrugged by Ayn Rand

The Fountainhead by Ayn Rand

How I Found Freedom in an Unfree World by Harry Browne

Ageless Body / Timeless Mind by Deepak Chopra

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The Mysterious Cause and Cure of Illness by Dr. John Matsen

Plus, get the following products as soon as possible:

The Golden Mailbox - How to Get Rich in Direct Marketing by Ted Nicholas

How I Sold $200 Million Worth of Products and Services by Ted Nicholas

Direct Marketing Success Letter - all back issues

Ted Nicholas Self Publishing Seminar Tapes

Ted Nicholas Direct Marketing Seminar Videos

Join the following organizations:

Toastmasters. Regardless of what field you choose, when you learn to speak clearly and

confidently it will help you.

Direct Marketing Association, New York. Get their mailings and go to some of their seminars.

Local Direct Marketing Association if you have one in your area.

Get on good mailing lists.

Well-run direct marketing companies mailings are important. Getting on their mailing lists is part of your education. Ask to be put on the following companies lists, or buy something from them.

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Phillips Publishing

Agora Publishing

Nightingale Conant

DELL Computer

Reader s Digest

The Company Corporation, Wilmington, Delaware

Fischer Publishing, Canfield, Ohio

Nicholas Direct, Inc., Indian Rocks Beach, Florida

Subscribe to these magazines:

Direct Marketing

Direct

Direct Mail News

Economist

Entrepreneur

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Subscribe to these newsletters:

Health and Healing, Phillips Publishing

Forecasts and Strategies, Phillips Publishing

Who s Mailing What, Target Marketing

Direct Marketing Success Letter

Seminars to attend:

DMA Seminars

Dan Kennedy Seminars

Jeff Paul Seminars

Gary Halbert Seminars

Peter Lowe Seminars

Dan Peña Seminars

Ted Nicholas Seminars

TIP: When money is really tight, offer to work at seminars which interest you in return for free attendance. Many promoters will happily hire you to help sell tapes, etc.

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A note of caution. Be wary of whose advice you choose to follow at seminars or on tape. Most college professors and ad agency people are not teaching reality. They teach theory, which often sounds good, but does not work in the real world. Entrepreneur speakers who invest their own money in their own companies and who teach what they do every day are special. What they offer you is invaluable.

Learn to write sales copy. The most financially lucrative skill you can possess is the ability to write effective sales copy. There are a few ways to learn.

1. Get a part-time job in commission sales. New York Life or CIGNA Insurance, Amway, Mary Kay, Fuller Brush, Encyclopedia Britannica, Kirby Vacuums, can all be excellent

training ground for direct marketing. But, here is the key. Find an organization with a good sales manager to train you. Capable trainers often exist within leading direct sales organizations.

2. Practice. (After you read the previously mentioned books.) You don’t have to be a great creative writer. But, you do need to develop sales skills. Good copy is ‘salesmanship in print’. An excellent way to develop skill is to take a piece of successful copy that is working, such as an ad or sales letter. Write it out in long hand. It’s great practice. You’ll also begin to get a good feel for the writer’s thinking process.

3. Get a part-time job in a mail order company. Here is an approach you can use that almost never fails. Find out who the direct marketing companies are in your area. Choose one or two with whom you’d like to work. Approach them. Explain how you can help

them. Make this nearly impossible to resist offer. Include in your proposal this statement.

You will help the employer make or save money. Or you’d rather quit or be let go

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anyway. And mean it. Offer to work free for at least two weeks! You will have a lot of

takers. There would be absolutely no risk on the employer’s part.

After you are hired, learn all you can about what it takes to operate the business.

4. Start your own mail order business in your spare time. What to sell? Choose a product or service that is now under-marketed. Acquire the rights to the product (see

DMSL August, 1993). I recommend you begin by offering a free special report. Choose a

hot subject you know, can learn, or acquire the rights to. You then can sell a product to those who request your special report.

5. Take a low-level job with a worthwhile company. Many college graduates and MBAs can’t get a job today. One of the big reasons is their unwillingness to take a lower level job which they consider beneath them.

That’s precisely one of the reasons which underlies why minorities make up the biggest

portion of the new millionaires in the U.S. They are willing to take any job, no matter how humble. Just for the chance to work and earn money!

There are many such examples. Sam Yeoung, a 23-year-old man originally from China

took an entry level job at McDonald’s 12 years ago. His pay? Minimum wage. Within 6

months he was the assistant manager of the restaurant. Then he became manager. Today

he is a district manager earning a six-figure income. Next year he will open his own

McDonald’s. My guess is he’ll be a millionaire in less than 5 years.

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Do you think a typical American-born college graduate would take such a position? No

way! Instead, they might spend months, even years, collecting unemployment. The new

millionaires create their own career. The real opportunity makers have learned how to

capitalize on the smallest chance.

There are no bad jobs! Take any job. And do it extremely well, as best you can. Result?

You’ll create the ultimate job security. How? You’ll make yourself indispensable to the business.

6. Join the U.S. Marines! Recently a survey showed that 66% of the CEOs of Fortune 500

companies were former Marines. (Of course I’m not biased, but I also happen to be a

former Marine.)

Do you think there is any relationship between CEOs rising to the top of their

organizations and the world-famous discipline learned in the Corps?

Of course there is!

Besides, John, I’ve never met anyone who couldn’t use some more discipline.

Have you?

Do whatever is necessary to succeed. When the going gets tough, as it inevitably will at times, stop whimpering, I’m doing the best I can. This is not good enough for a truly successful life.

And it isn’t worthy of you.

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There is only one thing good enough.

You must do what is necessary.

When the banks turned Dan Peña down nearly 200 times, he kept contacting the next one. He got the financing. Today he is worth $200 million. Would you have given up at 6? Or 12? Or 50?

Colonel Sanders began at age 66 with assets of a broken down jalopy and a chicken recipe. He went to nearly 2,000 restaurants and was turned down. He kept going. When he was asked what he would have done if the 2,001st turned him down, he said, ‘I would have gone on to the 2,002nd’! Most people would have quit long before this. When would you have stopped?

I started my first business with savings of $800 and debts of $96,000. Numerous people turned me down. My bank also rejected my proposal. They told me I was crazy, the idea would never work. But I would not be denied. I knew I would find willing backers. And I did.

Most of the reason for my success today as a marketer, copywriter and entrepreneur is not more talent than others. What is the reason? I dig deeper than most people. I write 200 or more headlines for every product to find the right one. Others write 2 or 3 and expect a miracle. I study products strictly from the buyer’s point of view. I write more copy drafts. I’m willing to try more tests and to fail more often than others. But here’s the secret. I succeed more often, too!

The real secret is to:

Work harder at doing whatever is necessary!

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You, John, must do whatever is necessary to succeed. You will become a millionaire or whatever else you want to become! It’s just inevitable.

As you read these words, you may be feeling that the path to direct marketing success is steeper than you first realized. And that sacrifices have to be made.

Here is the reality. There is a price to pay for success. And a price to pay for lack of achievement. You, like all of us, have a choice. To succeed in a big way, gratification may have to be delayed.

But the good news is, it’s worth it! I believe there is no wasted energy in the universe. During those tough times when things look bleak, which happens in all our lives, I give myself a reminder for just as night follows day the results will come.

Yes, once you pay the price for success, the rewards will come. And keep coming forever! You will become as wealthy as you desire.

People all over the world will seek you out to buy your products. Invite you to speak. Offer you large sums to help them - be their partner. Present you with more opportunities than you could ever pursue.

And life is long. Gratification won’t be delayed forever. There is plenty of time to own fancy cars, enjoy luxurious vacations, mansions, jewelry, whatever you want. You’ll be able to live the lifestyle you choose anywhere in the world.

So dear reader, the above is what I offer my friends. And yours. I look forward to getting your feedback to this issue of DMSL. Looking forward to next month.

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Sincerely,

Ted Nicholas

P.S. Next month in response to subscriber requests I will cover: How to Successfully Market Through Catalogs.

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Reality Check 101

You’re about to get rich. Really rich. But things are not so fair for most of your brethren. They work too hard, never having enough time for themselves and their families. Churches, little league and Girl Scouts, clubs, and maybe some effort at self-improvement, and they’re all worn out.

Even with all negative stresses of distinctly unquality time at work, they don’t have nearly enough money.

How did things get so turned around? Somehow, they manage to keep living month to month.

Budgeting purchases of less than $200! Life has got them roped so tightly sometimes they think that is life! And so they turn on the TV again, and settle into numb and dumber.

But, do you want a little reality shock? Have you ever heard of Pareto? I’ll bet you have...

The Pareto Principle

What you’re about to learn here may sound basic. That’s okay - it is! It’s so basic, in fact, that it’s the foundation of your success.

Pareto was an Italian mathematician who was the first to notice an interesting natural

phenomenon. In the tradition of the times, tagging his discovery with his own name, he

christened this 80/20 phenomenon the ‘Pareto Principle’.

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These 20% and 80% ratios make for some brutal realities in life. There’s an inverse proportion set up, an imbalance that always exaggerates both the work and the rewards... To your gain or to your pain.

One way of explaining the principle is to say that 20% of the effort accomplishes 80% of the work.

This phenomenon holds true in just about any application. Personally, 20% of your friends give you 80% of your satisfaction. As a student, 80% of the time you spend studying only gives you 20% of your grade; you get 80% of your grade from 20% of your effort.

It’s well known in the sales profession that 20% of the sales force produces 80% of the results.

Reality Chicklet: Work less, earn more!

When it comes to money, it’s the smaller 20% of the population, 20 people out of 100, which gets the massive 80% rewards. That means that 80% of the people are fighting at the trough for the 20% left-overs.

As a humanitarian, I wish I could contravene this phenomenon, but it would be like trying to deny or ignore any other natural process, such as those that make the winds howl when winter comes. It doesn’t do any good to be in denial.

However, remember that, though we can’t make the winds stop blowing, we can use them to our commercial purposes. We can use the winds to sail our good-laden ships across oceans and with picturesque and pleasing windmills grind our grain into flour.

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The simple truth is, you don’t have to be on the wrong side!!! The whole purpose of this book is to give you the information, resources, and motivation you need to explode through the quantum barrier and forever enjoy the rewards of the magic 20%, the Upper Fifth.

√ ...Doing a mere 20% of the work of those who suffer.

√ ...Enjoying an exponential amount more money.

In special honor to Seignior Pareto, let’s do the math. Then, in special honor of you, let’s discuss the revolutionary truths discovered in his simple sounding principle.

Thought Experiment: The Pareto Principle and Money:

Let’s apply this principle to a $2,000,000 pool of annual income, earned by 10 people.