The Power Of Buying Right

October 18, 2007 |

Buying space at the right price is just as important as presenting the right message. Maybe even more important.

The greatest product, offer and ad copy in the world will not overcome bad economics, and one way to achieve bad economics is over-paying for media (or, for that matter, for printing.)

Many years ago, I made the same dumb mistake many did and do; I “knocked off” what I could see of a business without realizing there were things I couldn’t see. At the time, the opportunity-type magazines were chock full of $10, $12 and $15 get-rich book ads, all modeled after the famous Joe Karbo ad*, and these ads were running month after month. I answered a number of them, and most of these advertisers were not doing much selling of additional products to these book buyers. I concluded that (a) they were making money from the book sales and (b) that I could create a better ad than theirs. I was right in some cases about (a); I was right in all cases about (b), but I still walked away a bit bloodied and bruised. Why? Because I paid the rates the magazines asked, less only frequency and agency discounts - and I had no idea that these other advertisers were buying the same space I was for 15% to 30% less than the “discounted” rate I was paying. (I also didn’t realize the extent to which they relied on their mailing list rental revenue for their real profits.)

I quickly learned the game, and can assure you: you MUST buy right.

And, unlike traditional/brand/image advertisers, we direct-response advertisers (should) know what we can pay per lead/order and, thus, what we can pay for space. If a particular publication will not sell you space for the amount you can afford to pay, then, no matter how badly you want to be in that publication, you must pass.

Tags: dan kennedy, dan kennedy marketing, Dan Kennedys, Dan s Kennedy, direct marketing

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