I read with some curiosity today the sales letter for Derek Gehl’s “Advanced Mentoring Program”.

I can’t guarantee the link will be still live when you’re reading this blog, but it’s there right now. (Update May 2006: the sales letter is gone and links to a different program being offered by the company, although still with the same testimonial referred to below).

Isn’t it fascinating how some facts get translated (read “hyped”) into sales-speak?

This statement:

Every year since September 2003, we’ve chosen a small group of REAL people…

Real people? What other kind are there? Plastic figurines? To be generous, I guess the statement is trying to re-inforce that it’s “authentic” people, not paid/trained/connected to the promoters.

Hang on again. “Since September 2003″ — that really means you have had how many intakes of students?

Just two at the time of writing.

The first group in 2003, and the second group in 2004.

And would I be right in guessing that for both of those intakes, the whole program was run by Corey Rudl (before his tragic fatal accident earlier this year)?

So would this be the author’s very first intake on his own? I’m not dis-crediting the author’s competence to run the course, but there is no acknowledgement really that the previous intakes were not marketed under the banner of his own name.

So how will that affect sales?

Also … the sales letter claims “Our business just flew past $54,700,000…” — was the author in control of those strategies for the entire time? Or was that also under primarily Corey Rudl’s stewardship?

The testimonial for “Graduate # 3″ is somewhat fascinating, and probably unintended.

She states that:

My site has been running for only 4 months and I have had over 7,500 unique visitors to my site, 300 opt-in subscribers and 62 e-book sales.

I’m finally working from home with my two-year-old son!

And I’ll never worry about being fired, let go, or laid off — ever again!

I’ve even bought TWO brand-new vehicles… and I’m taking vacations that would not have been possible without the IMC mentor program.

I now have the extra money I need for my family to enjoy the small luxuries in life.

Do the sums.

62 eBook sales @ $19.95 per eBook (I checked the price on her website).

That’s gross revenue of $1,236.90. Over 4 months. Or less than $78 per week for those 16 weeks.

And that’s gross revenue, not net profit.

And she claims on her website that “It took me over 2 long years to put this information together.” So that time should be factored in to the $1236 gross revenue too.

Let alone considering the US$7,999 cost of the program! After all, she’s a “real” person so she would have paid in full for the program.

That actually means her ROI is thousands of dollars BEHIND, not in front.

So then how can the sales letter for the program claim these two statements …

This work-at-home mom now has EXTRA cash for luxuries…

… Like TWO new cars and vacations!

and

You’ve met Taura Gannon who now works from home with her two-year-old son and just bought TWO new vehicles with profits from her health tips website.

Two new cars for less than $1,200? Before the original cost of the program is taken into account?

And bought with profits from her website? Are you kidding?

And that’s not misleading? You’d think the author was trying to pull a fast one. Does he think all of the readers of the sales letter came down with the last shower?

When does gross income of $78 per week get you two new cars? (Whilst you’ve still also got a nett loss of over $5,000 when you include the fee paid for the program?)

Aren’t these the real questions that should be addressed?

Somehow I doubt all 35 spots in this progam will go at US$7,999 each.

Marketing Lesson

When a sales letter is perceived to be untruthful, then the sale is lost. Not just this time, but also for future sales. It lowers the perception of the seller in the potential buyer’s eyes considerably. And for good reason.

I wouldn’t recommend this strategy to anyone.

It’s like Coles in Australia here advertising their super-fast checkout. A visit to the store generally leaves you with the opposite experience. So when it comes time for the next lot of advertising, how likely are you to believe their claims?

UPDATE 10 December 2005: It has been nearly 2 weeks since my original post and the sales pages still shows no sign-ups, all 35 spots still available.

I read with interest an auction on eBay today for a Fuji Xerox Docutech C525A colour laser printer.

This printer has an official “recommended retail price” (RRP) of $799, but anyone who’s ever bought IT equipment knows such a figure is ludicrous (except for buying Mac stuff!).

Some manufacturers now quote an “estimated street price” because they know full well that the full retail price is way above what most products can be purchased for.

Enter eBay and the chance to buy a “bargain.”

A quick check of the price for this printer from some well-known Melbourne-based IT resellers shows this printer has a street price under $600 to around $680.

However, one opportunistic seller on eBay is flogging off these printers at $669, plus up to nearly $45 in courier charges!

That totals around $715 — well ABOVE the best street price of the exact same item from an IT reseller.

That eBay auction might be a bargain when compared to the RRP, but you’d be spending over $130 — or over 22% — MORE than you could buy this item elsewhere.

Golden Buyer Rule #1: Know the value/price of an item before you bid!