Six Figures is Chump Change

When Clayton called it a day on the Makepeace Total Package it felt like Yoda had died.

What were we going to do? Without the light the dark side is difficult to resist.

Fear not: Maybe there won’t be any future updates, but I’ve got special permission from Clayton and Wendy to revive their old posts.

And as re-runs go, they don’t get better than this.

And what a post to get things rolling again.

If it gets the attention it deserves, there’ll be more coming over the coming weeks and months.

So, just like Oliver Twist, let me know in the comments if you want more.

With that said, let’s get going. I know you’re going to love this one.

Enjoy.

Six Figures is Chump Change

• How AWAI and Bob Bly got it wrong …
• My Startling Confession: The REAL reason why my clients grow up to ten times faster than their competitors do and why I earn ten times more than most copywriters …
• The little-known and thoroughly misunderstood business model that explodes response for business owners and turns six-figure freelancers into seven-figure copywriters …
• And much, much more

Dear Business Builder,

Some say the very definition of the word “insanity” is doing a thing the same way repeatedly and expecting a different result.

Probably true: I’m willing to bet lots of folks who inhabit that funny farm on the outskirts of town got there for this very reason.

Sadly, not all insane persons are committed or fitted for straightjackets before they do harm to themselves or others. And fewer still get the professional help – or the thorazine, shock treatment and/or frontal lobotomies – they so desperately need.

… Like, for example, well-meaning but delusional folks who enthusiastically support Republican candidates in the sincere belief that they really will eliminate wasteful government spending – despite the facts that …

1. Republicans have been making that same promise since the mid-1960s …
2. We’ve had five Republican presidents and the GOP has controlled both the White House AND Congress for ten of those 43 years, and that …
3. The U.S. government now spends 23,000% more than it did four decades ago and the national debt is now 28,000% larger.

So by definition, voting Republican and expecting smaller government and lower federal spending MUST be the pinnacle of insanity – right?

Not necessarily …

At this very moment, millions of poor, delusional souls are passionately supporting Democrat candidates believing they really will finally eliminate racial and sexual discrimination, clean up the environment and end poverty – despite the inconvenient truth that …

1. Democrats have been making those same tired, old promises for 43 years …
2. We’ve elected three Democrat presidents and the Dems have unilaterally controlled both the White House and Congress for 23 of those years, and that …
3. Every one of those problems is still with us and some are more severe than ever.

Now from these facts, a sane person might conclude that the government is impotent to solve these problems or that politicians of both major parties are merely incompetent; incapable of doing anything right.

A sane and somewhat cynical person might even suspect that the secret three-step strategy for succeeding in either party is: a) Raise right hand, 2) Solemnly place left hand on stack of Bibles, 3) Lie your everlovin’ ass off.

Nevertheless – and despite the fact that some of us feel it’s cruel to make a spectacle of the mentally ill – every newscast this campaign season is replete with images of normal-lookingpeople in both parties wildly cheering every ounce of feculence and hot air that proceeds from the mouths of their chosen candidates.

Why? Because they actually believe that voting for their party – again – will produce a different result.

Sometimes, all a truly sane person can do is shake his or her head in amazement. Or hope against hope that HillaryCare will get these unfortunate individuals the psychotherapy and drug regimens they so desperately require.

(On second thought, curing her constituents’ mental afflictions would pretty much guarantee Hillary – or any other politician for that matter – a single term in office. So I guess it would be insane to hold your breath until that happens!)

I’ve said it before and I’ll say it again:

If the world was a fair place, the Federal Trade Commission would have already populated our prisons with the politicians who have so egregiously defrauded us.

And the million or so hapless inmates whose only crime was to fire up a doobie in the privacy of their own homes would be free; happily and harmlessly munching their ways through mass quantities of Twinkies.

But I digress …

Our theme for today is insanity.

As in doing a thing the same way repeatedly and each time, expecting a different (hopefully better) result.

So now that I’ve pretty much offended everyone on both sides of the aisle (and hopefully, prompted a few of the more sentient among us to actually think), let me say something really controversial:

The American Artists and Writers Institute is full of beans and so is Bob Bly.

Don’t get me wrong: I love Michael Masterson. He’s one of the most brilliantly successful guys I know. More than that, I love his copywriting courses and all the other great stuff AWAI publishes to help young copywriters along. I won’t touch a writer with a ten-foot pole until he or she has completed BOTH of Mike’s courses.

And Bob Bly is hands-down the sweetest, dearest, most generous business friend I have – not to mention one of the most effective and most prolific copy coaches on the planet.

But Bob and AWAI have told you something – something about me – that simply isn’t true. And I need to set the record straight right now:

When AWAI and Bly say I’m the world’s highest paid freelance copywriter, they are mistaken.

Please don’t get me wrong: It’s not like they’re blowing smoke up your skirt … it’s just that they’re misinformed.

Yes, I earn millions of dollars in copywriting royalties every year. In fact, I’m guessing that when my accountant calls me in a few weeks, he’ll tell me I bagged well over $4 million in 2007.

Only problem is, I am not a freelance copywriter!

Not only that; I wasn’t a freelancer between 1982 and ‘88 when I made millions with Security Rare Coin and Blanchard & Company. Or between ’91 and ’95 when I made millions with Phillips Publishing. Or since 1999, earning up to $650,000 per month with Weiss Research.

And for good reason …

The freelance copywriting model is insane.

I know – you’ve been told that freelancing is the road to the big money.

And sure – if you’re willing to settle for a six-figure income ($100,000 to $999,999 a year), freelancing is one way to get there.

But if you’re interested in making the most money possible for every hour you work – two, three, four, even five million every year …

Or if you’re a business owner or marketing exec looking for a way to get the most effective copy possible out of your writers …

You can trust me on this: Freelancing is NOT the way to go.

In fact, I’ll even go so far as to say you’d have to be insane to want to be a freelance copywriter today.

And that, if you already are an established freelance copywriter and plan to continue freelancing for the foreseeable future, you’re out of your everlovin’ mind.

And that, if you’re an entrepreneur, business owner or marketing exec who hires freelance copywriters, you should have your head examined.

Because whoever you are, the freelance model is costing you a bloody fortune.

Now, before I continue in this little heresy, let me just say I’m well aware of the fact that just about every top copywriter in the country will read this.

Every one of them are cherished friends and a few are even former protégés of mine. And yes, every one of these top guns makes a good six figures a year as a freelancer and some of them have even broken the $1 million-a-year mark.

And I also have beloved lifelong friends at Agora, Healthy Directions, Phillips and most of the other major direct response companies you work for now or hope to get an assignment from in the future.

So please chalk up what I’m about to say to “tough love:”

You’re all nuts.

Business owners and marketing execs who hire freelance copywriters – and who, despite their experience to the contrary, hope the writer will give them a grand-slam home-run …

Freelance copywriters who are serially monogamous with six, eight, even twelve or more clients each year – and who, despite their experience to the contrary, hope to make it into royalty heaven …

All certifiably insane.

All doing the same thing, the same way – repeatedly – and hoping for a different, hopefully better result.

Take a look at how the freelance copywriting model works and you’ll see what I mean:

Freelance copywriters are hired guns; retained by many direct response companies each year to create promotions for their products.

Typically, the writer is offered an advance of between $12,000 and $25,000 to do the work – with the promise that if his promotion produces a greater return on investment than the promotion the client is currently using, he’ll also receive a royalty whenever his copy is used. (In direct mail, the royalty is usually between $10 and $50 per thousand pieces mailed. Online and in other media, the royalty is often 3% to 10% of the revenues the promotion produces.)

The writer slaves away over a hot keyboard for a month or more to create a promotion that will generate a greater return on investment (ROI) than the promotion the client is currently using.

To do this properly, he must learn everything possible about the product, the prospects for the product, the company’s promotion history and study what his client’s competitors are doing. This learning curve can consume two or more of the weeks allotted for each job.

If the writer succeeds, his promotion becomes the new “control” and the royalties begin flowing to him each time his copy is used.

Then, immediately after it gets a new control, the company calls one, two or three other writers and assigns them the task of beating it in the hopes of raising their ROI and/or having a new control ready to go when the existing one begins to lose its effectiveness.

Now, here’s why I say this model is insane:

FIRST, since freelance copywriters write for many clients during the year – including the clients’ competitors – client companies are notoriously and understandably hesitant to tell them everything they need to know to succeed.

SECOND, when copywriters accept an assignment, the new promotion is often pitted against several other new promotions created by other freelancers on its first outing, thus reducing the odds that any one of them will win.

THIRD, even after a writer has established a new control with a client, that client will immediately ask other writers to try to beat it, thus limiting the original writer’s royalty potential.

FOURTH, and this is why I no longer accept freelance direct mail assignments – because of increased competition, maturing markets and the rise of the Internet, the prospect universes and mail quantities for investment and health newsletters have plunged precipitously.

In the early to mid-‘90s for example, my controls for health newsletters mailed up to 30 million pieces per year at break-even or better. Today, a strong control mails maybe a third as often and pays one-third the royalties.

The investment niche is even worse: In 2000, financial newsletters could mail two to three million pieces per month. Today a typical control mails maybe one-tenth as much and pays only about one-tenth the royalties.

FIFTH, armed with the realization that their potential for substantial royalties is shrinking, copywriters are no longer adequately incentivized to spend the time and effort to give each client their best work.

To the contrary: Declining mail quantities and the fact that other writers will be challenged to beat their controls incentivizes copywriters to short-cut their learning curves on each project … spend as little time as possible writing each job … and then overbook themselves to collect as many advances as possible.

Put simply, the freelance model that worked so well for all of us in the ‘70s, ‘80s and ‘90s is irreparably broken.

Business owners and marketing executives are finding it harder to get great new controls. And freelance copywriters – even “A”-level writers – are struggling to maintain the income and lifestyle to which they had previously become accustomed.

Now can you see why I say copywriters and direct response companies who return to this model repeatedly – and who, with each new assignment, hope for better results – should have their heads examined?

Can you see why smart companies – like Agora, for example – are expending enormous resources to recruit, train and generously incentivize dedicated in-house writing staffs?

Can you see why so many top copywriters are abandoning the freelance model entirely and going into business for themselves?

My Confession: How I really got to seven figures; how you can too

Now, I’d love to tell you that I earn three, five, up to ten times more than other writers because I’m ten times the writer they are.

And I’d also like to claim that my sales copy alone is responsible for the fact that my clients usually grow their sales and profits two, three or four times faster than their competitors do.

But alas, that just isn’t true.

The truth is, I’ve stumbled upon a better way to work with my clients: A new kind of relationship that eliminates the obstacles to excellence that are inherent to the freelance model … frees me to give clients my very best work … reduces their financial risk on every promotion … ramps up their response, average sale and ROI … accelerates their sales and profit growth … and brings me millions in royalties each and every year.

So what is this amazing breakthrough that consistently quadruples companies and turns six-figure copywriters into multi-millionaires?

I won’t keep you guessing: I become a full-fledged partner in my clients’ businesses.

• My clients provide me with retainers, advances and royalties I can count on – and in turn, I agree to focus my creative energies exclusively on them; never their competitors.
• My clients freely open their files to me, showing me their past successes and failures … the mailing lists and other media that have worked for them and which have not … their complaint letters as well as their testimonials … and everything else I need to give them bigger winners.
• I agree to play a major role in both in-house and customer acquisition promotions and even in promotions in which my royalties will be less.
• They agree NOT to throw one, two or three copywriters up against each new promotion I create – and in return, I agree to give them my very best ideas and produce as many copy projects and test panels as required to get them the breakthrough they yearn for.
• Instead of allowing staff marketing people (who couldn’t write a successful promotion if you held a gun to their heads) to change my copy, I alone decide which suggestions get acted upon and how they’re incorporated into the copy.
• Instead of allowing ham-handed compliance officers and attorneys to unilaterally change my copy, my clients empower me to work with their legal beagles one-on-one to develop compliant solutions that do not kill response.

And that’s just the beginning of the benefits to both parties …

• I also vow to take an active role in establishing and evolving my client’s long-term business strategy and his product development strategy.
• I identify problems in his corporate structure that are blocking his path to explosive growth.
• I get to know every product he has inside and out.
• I study his prospects and customers and get to know them in intimate ways no freelancer ever could.
• I spot the jobs nobody’s doing effectively in his organization and help him find the people he needs to fill them.
• I create procedures that push each new product and promotion through the pipeline in record time and that enable him to roll out his winners faster and bigger.
• And much, much, much more.

And because I’m able to contribute in so many ways, my client is free to compensate me in ways that make sense to both of us.

I can charge less for jobs that produce little or no immediate profits for my client – like new customer acquisition campaigns, for example – because I know I’ll make it up in spades when those new customers order later on.

The proof’s in the pudding

This is no fly-by-night theory; no “looks-good-on-paper” scheme that fails in the real world.

Doing things this way is the real reason why I was able to multiply Security Rare Coin’s revenues ten times over in my first month with them … take them from $360,000 a month to $16 million a month in sales in one, short year … and make a bundle for myself in the process.

It’s how I took Blanchard & Company from $20 million to over $115 million.

My retainer, consulting arrangement and exclusive writing agreement also contributed mightily to the explosion of Phillips’ health division in the ‘90s.

It’s what enabled me to make Weiss Research’s Safe Money Report the largest financial newsletter in the world in the 2000s.

… And it’s what still earns me more royalties every month than what most writers earn in a whole year.

More to come

Every Monday for the next month or so, I’m going to show you more of my process – including …

• How to find and qualify the clients you want to work with – and how to spot clients you should steer clear of …
• How to persuade an existing client to try this admittedly unusual (but immensely profitable) working arrangement …
• How to structure deals with clients that get you monthly retainers, royalties, overrides, and even stock in your clients’ companies …
• Where the gold is buried in your client’s company – and how to quickly get it out of the ground and into your client’s pocket where it belongs (taking a nice chunk for yourself in the process) …
• How to keep clients honest when it’s time to fork over your royalties …

… And in a few weeks, I’m even going to invite you to attend a FREE, LIVE ONLINE EVENT in which I’ll show you – step by step – how I prime my clients’ companies for success!

My advice: Watch your inbox! Do NOT miss a single one of these issues. The secrets I plan to reveal have been worth millions to me and tens of millions to my clients. I’m giving them to you free; no strings attached.

It would be “insane” to miss them – no?

Yours for Bigger Winners, More Often,

Clayton Makepeace
Publisher & Editor
THE TOTAL PACKAGE™