Operating a home based mail order business is exciting and fun. It is also a highly competitive and potentially expensive marketing method if the individual doesn't understand he rules of the game. Operating a home based mail order business can cost plenty in time, effort and money if done incorrectly so it is definitely not something that should be learned by trial and error.
Catalogs available through our home business opportunity are professionally designed not only to spark orders, but to allow cost efficient mailings. The designers work directly with local postmasters to ensure all materials qualify for cost saving mailing methods, and paper style and weight ensures as inexpensive a mailing as possible without compromising image quality.
Just keep in mind when considering starting a home based mail order business, it's one of the most expensive and risky marketing methods to start. It's a numbers game; the more catalogs mailed, the more likely orders will be placed.
The industry response rate for prospect lists is less than 1%. (100 catalogs will average 1 order.) so mailing to established customer lists would definitely be a more profitable method for starting a mail order business.
Many successful businesses have began using one or even several other marketing methods, such as flea markets, home shows, or web sites to build customer lists before starting a mail order business from the profits of other methods.
To generate orders by mail any business needs to create excitement! Give customers a reason to buy a lot and to buy now.
Whether you're using mail order, a leave behind catalog, or an order stuffer, always take advantage of Special Offers to create excitement for existing customers and give them a reason to buy additional merchandise. Make use of the special offer stickers available to give free gifts or Buy 3 Get a 4th Item Free offers. Even consider issuing a coupon for an additional discount when ordering from a web site.
I can hear all the questions now. Who pays for this free merchandise or discounts? Actually, you pay for the items. But, in either case, profits and additional sales will more than cover the cost for the bonus items and you now have a very satisfied customer.
Most people operate their mail order business from their home; in fact, that's one of the most attractive things about this marketing method. Be sure to check:
In either case, the restriction may be in place to prevent crowds of customer traffic, or delivery trucks through the neighborhood. A mail order business is extremely quiet and unobtrusive, so if you're faced with a restriction it is very resonable to ask for an exception.
Most states require a business license to operate. Consult your tax advisor for specifics concerning your business license. However, generally sales taxes are only paid to the state in which the business is located, and then, only on sales made to residents of that state.
You'll need a "resale" number to do business. Once you have that number, you'll be able to buy merchandise without paying sales tax. You'll charge sales tax to customers when appropriate, and remit that money to the State Board of Equalization. Contact the county clerk's office to register and apply for a resale number.
Additional information on starting and operating a home based mail order business is included in the Getting Started Manual included in your business packet.
Ready to start your Home Based Mail Order Business?