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Straight Talk About Copywriting Royalties by Bob Bly
Subscriber MC writes: “I would like you to address the subject of getting people to pay you royalties. I assume this can become a problem for many direct response copywriters.”
A royalty is a fee paid to copywriters based on the performance of the promotion they wrote.
There are all kinds of arrangements. But the most typical online is a percentage of net sales, which is often 2-3%.
For direct mail, the royalty is a fee paid per package mailed, usually 2 to 3 cents.
But really, you and the client can negotiate whatever the two of you can agree to.
For instance, one client agreed to pay me a flat cash bonus of $6,000 if my DM package beat his control, which it did.
Another offered a flat royalty of $3,750 every time they mailed the package.
Many clients, especially small and amateur, offer to pay you a percentage of sales in lieu of a fee.
These deals you should stay away from, because you are betting on something you have no control over.
For instance, what if the client picks the wrong mailing list, changes your copy so that the promotion doesn’t perform, or never runs the promotion? It happens.
The preferred arrangement among top copywriters and top clients is the writer’s usual flat fee PLUS a bonus royalty.
Why would a client pay you both your regular fee and a royalty on top of that?
Some clients pay the royalty on top of the regular fee because they think it motivates the writer to do a better job.
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Others do it because they want the writer to have a financial incentive to keep his promotion as the control by doing tweaks and updates for no additional fee.
Notice that above I referred to “top clients” paying royalties.
For the most part, only direct response marketers pay royalties, because direct response is the only marketing channel where sales generated by your copy can be measured precisely down to the penny.
Most local car dealers can’t easily tell on any given day how many customers were driven to the showroom by your billboard or radio spot, so how could they pay a percentage of sales to you?
But if you write a landing page for a direct marketer selling a home study course, you know exactly the revenue it produced.
That’s why most copywriting clients do not pay royalties: they cannot measure the sales results of their advertising.
Clients who usually do not pay royalties include business-to-business marketers, Fortune 1000 corporations, brand advertisers, ad agencies, local businesses, and small businesses.
The only clients who pay royalties on a regular basis are (a) major direct marketers like Agora Publishing and Weiss Research and (b) smaller but very successful, profitable, and experienced direct marketers, mainly online these days.
Copywriter John Carlton advises marketers not to do royalty agreements with copywriters on the first job.
“It may sound great to push off part of the fee to result-oriented royalties paid later,” says John. “But you need to remember that you’re just beginning your relationship with this writer.”
It’s John’s opinion that a good copywriter will usually not even propose royalties on the first job, because he doesn’t know or trust you any more than you do him.
Bob Bly is the author of “World’s Best Copywriting Secrets” and has written copy for more than 100 companies including IBM, Boardroom, Medical Economics and AT&T. He is the author of more than 75 books and a columnist for Target Marketing, Early To Rise and The Writer. McGraw-Hill calls him “America’s top copywriter”.
4 Steps To $10k A Month
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Business Wisdom From Waterworld by Bob Bly
Waterworld is one of my favorite movies and Kevin Kostner one of my favorite actors.
Everyone laughs when I say I like Waterworld but I love the movie and cannot understand why others do not.
The premise of Waterworld is that the polar ice caps have melted, virtually covering the entire planet with water.
I especially love the final scene, which appeared on the original release but is now not shown when it airs.
In the original final closing scene, the two female characters Helen and Enola reach the last remaining bit of dry land on Earth. They climb to the top of the seemingly small island they have landed on.
There they find a plaque commemorating the first men to reach the spot.
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It is dedicated to “the first men to climb Mount Everest”. And you realize that the top of Everest is the only land on the planet still above water.
Chills up my spine, cut to credits.
But my point is that the global flooding of Waterworld symbolizes (for me) how much the business world has and will continue to change right in front of us, in ways we could never have imagined.
If you are older (and around my age), this sea change has already happened to you, with some consequences you may like and others you may not.
If you are young, trust me
A revolutionary way to hijack other websites for your list building efforts
The slogan of Absolute Jacker is “Take Control Of Any Site”, and it’s what this WordPress plugin exactly does.
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Good writing: Faulkner vs. Hemingway
William Faulkner once made fun of Hemingway for not using lots of big words in print. Said Hemingway in reply: “Poor Faulkner. Does he really think big emotions come from big words? He thinks I don’t know the ten-dollar words. This is an embarrassing levitra canada prescription condition which cannot be shared to anyone, even to the physician. Do you want to save hundreds or maybe even at all because of your smoking then it is likely time that you examine what is going on and where prescription de viagra their relationship did went wrong. However, Sildenafil medication has been approved for the treatment of erectile dysfunction and these are known to have adverse viagra 100mg tablet side effects. The particular medical operation depends on the deeprootsmag.org cialis price cause of infertility for any given couple. I know them all right. But there are older and simpler and better words, and those are the ones I use.”
Source: The Copywriter’s Roundtable, 3/13/14
Do Your Facebook Pages Look This Good?
Are you taking advantage of Facebook’s MASSIVE popularity?
No? Well I’m sure you’ve got a very good reason.
The most common reasons I hear about is that people simply find it too hard to build their own like pages, and to buy them, or get them created it costs too much money.
John Thornhill and Dave Nicholson have just released a product that cures BOTH of those problems, in one fell swoop!
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These templates have been professionally designed, specifically to make it as simple as possible for you to edit and get online, no graphical skills are needed whatsoever, they are all “copy and paste” simple.
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Get ‘lost’ customers back before they leave you.
Back in the day, subscription marketers, mainly magazine publishers, would send “expire” letters to customers who did not renew their subscriptions after receiving a series of renewal notices.
Likewise, online customers who haven’t ordered in 2 to 3 months should get the e-mail equivalent of an expire letter, advises Loren McDonald of Silverpop. The objective of these e-mails is to get attention and regain engagement. The messages can focus on surveys, special offers, “best of” offers, or new content.
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Source: Silverpop Tip Sheet, “Top 10 Tips for 2014”
Watch your words. They could be sabotaging your abundance.
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5 situations where you should consider walking away from a potential new client
1. The turnaround time is incredibly tight. Asking a lot of questions when you see a crazy deadline can help you make a better decision about taking the risk. Example: if it is due Friday, ask what would happen if they got it the following week instead.
2. The client is talking to a lot of other vendors. Although there are exceptions, as in the case of government contracts, a good rule of thumb is that a client looking at more than 3 vendors is probably price shopping. Run, don’t walk.
3. The client contact is tentative and inexperienced. Solution: Get a conversation with the most senior decision-maker from the client’s team as early as you can.
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5. If there is no budget, that is a red flag. Perhaps these are people who haven’t thought out what copy costs and should be educated before seeking proposals.
Source: Based on article in PR Daily Extra, 3/12/14
Out-of-the-box Software Automates Teespring For Massive Profits!
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Imagine being able to put some scarcity/urgency in your Teespring campaign.
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Unbeatable 1-2 punch in multichannel marketing
If you’re only going to use 2 marketing channels in your next marketing campaign, combining e-mail with direct mail would be a smart choice, says Daniel Flamberg.
According to Daniel, a Harvard Business Review blog told of a retailer’s promotion targeting 105,000 loyalty card customers. Those who received both postal and e-mail had the highest response rates and average orders, yielding the most dollars per name mailed. For every e-mail sale, the retailer also got 3 in-store sales.
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Source: The Magill Report, 3/11/14
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Why direct marketers know more than social media gurus
My experience is that experienced direct marketers simply know more about marketing than younger marketers, especially those focusing on social media. And according to Brian Kurtz, Executive VP of Boardroom, the reason why is: money.
“Paying for marketing makes better marketers, because consequences are great teachers,” Brian explains. “It’s great that some forms of digital marketing, like e-mail and social, have costs so intangible they don’t appear on the balance sheet.
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Source: Today@TargetMarketing.com
Discover how to have a successful product launch within the next 2 weeks!
Every so often a new product comes along that literally shakes the Internet marketing world. Well, it is happening again…for “2 Week Product Launch“. This new product by Clarke Hanna has created more of a groundswell than anything. I suppose it all makes sense, since Clarke is often hidden away in the background, pulling the strings on these huge launches.
In any case, I urge you to take a look at what Clarke is doing…the momentum he has built is just plain crazy. He has put together a complete home study course detailing ALL of his best Internet marketing methods presented in 10 step-by-step Videos, a 30-page e-book, daily checklist, mindmap, tools and resources.
It very simply maps out all the steps to take, from product idea to creation, setting up your sales pages, creating autopresponders, to finding JV partners and retargeting.
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What are hashtags for?
In 2009, Twitter updated its system to make #hashtags clickable, returning a search for all tweets containing the term. Today hashtags connect conversations on Twitter, Facebook, Tumblr, Instagram, Google+, and Pinterest.
“Hashtags present a fantastic opportunity for content marketers to identify social media conversations relevant to their business and get their content in front of the right people,” writes content marketing expert Jonathan Crossfield.
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Source: Content Marketing Institute, 3/7/14
4 tips for raising money with crowdfunding
If you have a project idea and want to try financing it with crowdfunding, here are some tips to making it happen:
1. Set a goal. Decide how much money you’ll need to raise and how you want to raise the funds.
2. Tell people your story and why they should consider funding your campaign.
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4. Don’t give up. Many crowdfunding campaigns do not reach their goal the first time around. But if there is enough interest, getting there the second time is much easier.
Source: Jim Daniels, Biz Web E-Gazette, 3/7/14
A clever direct mail gimmick that can get your DM opened.
Want your direct mail piece to stand out in the recipient’s mailbox? Test using a stamp vs. an indicia or meter.
“Consumers can tell when something has been mass-mailed,” says Sarah Schupp, UniversityParent. “If you make the envelope look like it came from a person rather than a machine, then the piece will more likely get opened. Try using stamps instead of metered mail, and use a font that looks like handwriting instead of typed text.”
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Source: Today@TargetMarketing, 3/4/14
Brendon Burchard’s 5 steps to gaining greater confidence
1. Decide to have it. Make it an intention. You don’t need to achieve anything more, you simply need to decide to feel and generate confidence on a more consistent and conscious basis.
2. Live with integrity for who you are and what you believe. When you are being fully alive and authentic and true to yourself, you feel confident.
3. Get more competent. Go gather more knowledge, skill, and abilities in the areas that you are passionate about and need to perform well in. More competence = more confidence.
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4. Get momentum. Take more action. Life isn’t about perfection it’s about progress. The more action you take the more progress you’ll sense and the more confident you’ll feel that you are on path.
5. Surround yourself with positive, supportive people. If you don’t have a supportive community, go create one. No excuses. A positive peer set will help you feel more confident.
Free shipping increases online sales…sometimes.
According to David Bell of the Wharton School, free shipping offers can be more compelling than price discounts for online shoppers. He says a free shipping offer that saves a customer $6.99 is more appealing to many than a discount that cuts the purchase by $10.
So it may be worth an A/B split test of percentage discounts vs. free shipping offers. Macy’s offers free shipping every day for orders over $99.
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Source: Copy Blogger, 3/4/14