Ted Nicholas is one of the most successful and revered copywriters and information marketers alive today. His copy, and marketing brainstorms have been directly responsible for more than $5.7 BILLION in sales over the span of his 50 plus year career.
Ted’s remarkable copywriting skill allowed him to turn his first information product, a book called “How To Form Your Own Corporation Without a Lawyer for Under $50” into one of the best selling business books of all time.
He wrote literally hundreds of ads that appeared in national newspapers and magazines to sell the book… split tested dozens of different appeals… and scrupulously tabulated the results.
…Can You Tell A Break-Even Ad From A Blockbuster?
Below, you’ll find the headline and lead from two ads that Ted used to sell “How To Form Your Own Corporation Without a Lawyer for Under $50”. One of the ads broke even, and the other was a blockbuster money-spinner that made Ted millions. Can you guess the winner just by looking? If you can guess correctly, John will send you a link to the mp3 recording of a live interview I did with Ted, called “Confessions of The $5 Billion Dollar Man”.
Are you ready? Go ahead and study the headline and lead from both ads. Then post a comment telling me which one you think was the blockbuster winner, and why. Keep in mind that results were tabulated across a wide variety of general interest business-oriented magazines and newspapers.
I love my wife. And I understand why she wants me to keep my mouth shut. She wants to protect me from the IRS.
But I can’t be quiet any longer. I’m angry. We are really getting jerked around. And I’m tired of it.
The government says one thing. And then does the opposite. Especially Bush. And I even voted for him. One of my biggest mistakes.
First the Feds talk tax cuts. Then they increase taxes. Remember the “read my lips” promise. Who are they kidding?
Average tax payers, you and me, are getting screwed.
The new law doesn’t bother the rich fat cats much. They still have loopholes galore. Let’s face it. They always will.
But recently I ran across a workable angle. It’s cheap. And it’s legal. It’s meant for the rich. But it’s perfect for us little guys. You don’t need any money. And we can get the same breaks the rich get.
I can hardly believe it. Get this. I formed a corporation. Of my own. For peanuts.
It’s my way of fighting back.
Now I have a small one man corporation. I operate out of my apartment. My work? I’m a commercial designer. Brochures, fliers– stuff like that. On my income I didn’t think I could save much. But I’m paying almost zero taxes. And it’s legit. Just like big business does it. I have no guilt. Uncle Sam already gets plenty. Too much from all of us.
One thing the feds didn’t bother much under the new tax laws–corporate tax goodies. Guess they figured right. Burden business too much. Result? No jobs for anybody. Including them. Not to worry. They know better.
From a buddy, I heard about this unusual book. It’s called HOW TO FORM YOUR OWN CORPORATION WITHOUT A LAWYER FOR UNDER $50, by Ted Nicholas. Damnedest book I’ve ever seen. Has the forms right in it. Pages are perforated. You just fill in some blanks, rip ’em out, and mail them in. A couple of days later you’ve got a corporation. No wonder it’s a bestseller. (They tell me over 650.000 copies have been sold.)
OK, so you get the gist of it. Homespun, buddy to buddy. The main appeal is tax savings. The dominant emotion is anger.
How do you think it stacked up against the one below? Same book, same offer. Totally different ad…
It’s downright scary.
As a self employed individual, your home, car, stocks, and other personal assets are always at risk.
The big fear is that a business disaster, which is beyond anyone’s control, could happen to you. An accident, lawsuit, or financial loss… events which happen every day… could wipe you out.
A major problem is that we live in a ‘litigation-happy’ society. It’s often a dangerous and naive assumption to believe that no one will ever sue you. A law-suit could be filed by a customer, supplier, relative, or disgruntled employee. In fact, there is a strong probability you will be sued in the near future even if you are very careful. You could lose, often on some technical point of law with which you are unfamiliar. If so… boom! Just like that you could lose your business. In addition, your home, cars, cash, stocks, bonds, and other assets could also go down the drain without proper protection.
Fortunately, you personally can avoid this risk. How? Incorporation.
The only way to separate business from personal assets is by forming your own corporation. Almost no amount of insurance can protect you from all kinds of risk like incorporation can. And you can do so even if you’re the only employee. In this way, if the worst happens, you lose only what is invested in the business itself.
Incorporation is also important for the doctor, dentist, or other professional. Unfortunately, many are dissolving their professional corporations because of the new Keogh rules. However, many are unaware of the risks they are taking.
An incorporated physician does not avoid personal liability in conducting his profession, during surgery for example. But he/she does protect personal liability just like any other business person when it comes to debts incurred by the practice, non medically related lawsuit judgements, leases, investments which go sour etc.
But a word of caution. Misinformation about incorporation abounds. If any of your advisors have recommended you not incorporate or dissolve your corporation… whether you have employees or a one-person corporation… you’d be smart to consider the facts. Only then would you be in a position to make an informed decision.
Myth – Keoghs have been…
OK, that should give you the tone and flavor of this one. Here, the dominant emotion is fear. And the ad is selling protection.
Post a comment, and give me your answers to these two burning questions:
1. Which ad is the million dollar ad?
2. What’s your reasoning?
Remember, pick the million dollar ad correctly, and John will send you the mp3 interview with Ted, “Confessions of the $5 Billion Dollar Man”.
lol, I vote for #1
I vote for #1
My reasons are:
1.The headline identifies with the bulk of people
2. It creates curiosity in people
3. It has a personal touch and the author feels more human and vulnerable like us.
4. It evokes scarcity.
5. It gives social proof (many others have already bought the same book.)
I am voting for #2-fear is a HUGE motivator!
Hello readers, I am by no means a marketing expert, however, I guess version A. Why? It engages the reader emotionally from start to finish. As this has been a product that has been sold at under 50 $ a large target group might have been small businesses and solopreneurs, and while those people might be afraid of lawsuits, saving taxes is nearer to their every day life, but I am just guessing here. Please be so kind to post the answer, thanks.
I vote for number 1
#1 – appeals to everyone
Abel prosper here. I’ll cash in on #2. Fear identified and fear put in check by incorporation.
#2 – The vast majority are far more fear-driven than greed-driven
I vote headline 1
The only way left for the little guy to get rich.
Magic! Unique use of a cookie cutter hook I hate that saturates the Web touting riches. Identifying with the little guy, rarely seen. Soft sell. I like.
The bow on this delightful treat below it.
Here is the uncensored message my wife asked me not to write.
Unsensored, and he chose to go against the women he loves to tell it true. Not a sales pitch. A message.
Fear is and ever present hook abused by advertisers. It works, but generally it hooks the desperate consumer. If it won the race we’re all doomed.
Plus the copy below adds value by being human.
Movies get genuine laughter when they use these same techniques. Makes the moment relatable to all.
Here’s a perfect example. Jack Reacher when he steps out of the car and casually walks to the crowded bus stop. Cops approach on mass. The old guy hands Reacher his baseball cap and in unison those at the bus stop close ranks. Cause when it comes to the man’ regardless our colour or crede we’re all the little guy trying to get along.
I vote #2 – fear of losing everything is way scarier then just taxes…
NUmber One gets my vote
I vote #1 because it was more appealing to me personally.
The first one catches my attention with the grabbing headline “Only way for Little guy to get rich”.
As it moves on, it keeps my interest telling me about how the government gets away with my money one way or another, and finally it mentions incorporation and how to do it based on the book. I’ll probably order the book.
The second is dryer and although the idea is “fear” I felt like stopping the reading of it. I did not feel like reading the entire article. It made me think “another of those promotions….”
I believe it was #1. Here’s why.
Headline does 3 things:
1) Immediately Connects with the target audience (the little guy)
2) Introduces scarcity. (Only one way…to get rich)
3) Evokes curiosity (What did your wife ask you not to write?)
Contains street level dialogue.
Allows the reader to “throw rocks at their enemy” (the IRS/government)
Features are written in the form of benefits. (“From a buddy, I heard…”(etc.)
Reads like a casual conversation – not an ad.
I’ll vote for number 1 because the implementation seems so much easier.
In fact, my eyes started to glaze over as I was thinking about all the complicated actions I might have to take, which the second ad implied.
But number 1 seems so simple. And this fact is even backed up by the reference to “For Under $50” in the title of the book, and the nice note about the tear-out forms in the book, as well. A very nice touch.
Ease and simplicity is a huge selling point.
#1 Because more people would respond to a general “everyman” ad and #2 targets professionals/small business owners.
I chose B.
Reason: “Fear of loss” drives people to take action more than “promise of gain”
Marsha Taylor says it allows the reader to “throw rocks at their enemy.”
Actually #1 covers the whole saying which is:-
People will do anything for those who will encourage their dreams (get rich & beat the tax man)
Justify their failures (Average tax payer – I couldn’t save much)
Allay their fears (It’s legal)
Confirm their suspicions (The government says one thing and then does the opposite while it doesn’t bother the fat cats)
and help them throw rocks at their enemies (The taxman)
#1 has a much larger demographic than the 2nd ad too.
#1… sucked me right in and had to know more…
and this ad was like a conversation in my head.
Number #2 = We buy on emotions, which come from the inner subconscious mind. The prime job of the subconscious mind is survival – to first protect and defend. Because of this, the 2nd one’s headline grabs our attention quickly when just scanning a page with “DANGER!” in big bold letters. Most people are also more motivate to move away from pain (and less by moving toward pleasure). And as someone myself who is a self-employed solopreneur, I was much more engaged with the subsequent text, bcse of this fear of pain and loss should something unexpected happen.
I vote for #1.
1.Simple every day language “the little guy” can relate and identify with…no confusing industry jargon “the little guy” couldn’t possibly be concerned with.
2. Uses the anger emotion in a “We vs Them” kinda way that totally gets the little guy…(the enemy of my enemy is my friend kinda thing)
3. It evokes curiosity and drags the reader in all the way to end.
4. Short sentences. Short paragraphs. Good use of white space
5. Has a buddy-to-buddy casual conversation feel…not a typical pitch
Please do share the winning ad. Thanks.
# 1. While fear is a great motivator, the category of fear used isn’t ideal. But, the motivation to get rich is universal. #1 would have broader appeal.
#1 : Claude Hopkins says never use negative ads. Plus I’m guessing that a negative ad here might work if someone had a sole proprietorship and was afraid of getting sued, but the majority of readers probably have no business at all— so a negative ad would more likely scare them away. Positive ad copy here is much easier to relate to
Have to go with #1. The copy had me from the start, was easier to read (more white space), emotionally compelling (who enjoys paying taxes?) and I would venture there’s a lot more aspiring entrepreneurs on a budget than established ones who would like the $50 premise.
For me, on balance, it’s no 2. Fear trumps most things. Especially the fear of loss. No 1 is clever and draws the reader in with a story and also allies itself with the little man against the Feds.
Please publish the winner and the reasons why it won.
The first ad won because more people sent money after reading it. One test is worth a thousand expert opinions. That said, the first ad is a lot more engaging and appeals more strongly to the emotional centre of the brain. The second ad headline grabs you, but then gets quite technical, which tends to kill readership, which in turn kills sales. IMHO.
#1 with same reasoning as Marsha Taylor above
I to think number 1. everyone has a grype with the government and paying taxes so i think it triggers emotions better than number 2
I’m for Headline 1… the underdog fights back… common enemy in IRS… secret information / loophole… promise of better life / opportunity
Cheers
I think ad number 2 could win that title. Fear of loss sells solutions better than almost anything else.
Vote for #1!
Number 2
Hits a problem and provides a solution
#2 FEAR OF LOSS.
Also specifity, urgency, and a mechanism.
My guess is ad number 1.
Because it employs the ‘Us vs Them’ angle. It hits the spot especially for readers who have already experienced what the ad talked about. The ad offers these readers an answer to their existing problem. Meanwhile, ad number 2 focused on issues that readers may or not have experienced before. It talked about a possible future problem.
I liken this comparison to selling a home security system. It is easier to sell a home security system to someone who’s been burgled before or has a neighbour who’s been burgled – the pain is closer to home. It is harder to sell a home security system to someone who has never been a victim of burglary or crime.
It’s easier to sell the cure than the prevention.
I vote for #1. It’s more personal, engages you emotionally way better than the second ad(which frankly seems a bit cold in the emotion department) and it’s written in a way that everyone can understand and resonate with it. Plus the wife hook is much more interesting. Fear is indeed a great motivator, but so is anger and greed (sticking it to Uncle Sam and keeping most of the money you make is what most business owners want to do).
Plus it also seems to promise you( in a way) a shot of having the privileges reserved only for “the fat cats” and the rich people:
“The new law doesn’t bother the rich fat cats much. They still have loopholes galore. Let’s face it. They always will.
But recently I ran across a workable angle. It’s cheap. And it’s legal. It’s meant for the rich.[…]
But I’m paying almost zero taxes. And it’s legit. Just like big business does it.”
These 3 phrases all anchor the primary solution of the book to what all the rich people are doing….and “tells you” that if you apply it…you too can enjoy the same benefits as the top 1%.
I agree with the voters on ad #1 such as Bogdan and Nkem and Cc
It’s much more personal, can interest anyone who has even thought about starting a business and addresses topics that are more down-to-earth and understandable by the “masses”. It hints that the information is really too important to just give away (hence the wife’s caution). It also talks about the pain points for virtually every “ordinary” person.
It stresses that the book is a bargain and very much a hidden treasure.
The fear-based ad lost me about half way through because it got too technical and specific.
Ad No. 2
DANGER!
All your personal assets could be wiped out overnight
People will do anything they can to protect what they already have.
Number 2 gets my vote. Fear of loss generally motivates better than hope of gain.
Thanks for this opportunity and the awesome lesson!
Chris
Number 2 gets my vote.
Considering the markets viewpoint from an empathetic standpoint, being taxed is something that just about everyone must face along with death.
Saving money on taxes certainly helps, but when it comes to your personal belongings, assets and just about anything of value under the sun, that’s a whole nother story.
Fear of loss is real and I also recognized how I felt when I read both… Number 2 certainly pulled me in from the headline alone!
Thanks Daniel for all that you do.
P.S. I’ve been following you for about a year now and you’re light years ahead of most marketers that I’ve subscribed too.
#1 because it hooks people by being more personal
Peter
Roy UK
I have to say for me it is advert number two, All I read of advert number one was the headline I just did not believe that the only way left for the little guy to get rich, There are many ways.
So my reason for choosing advert number two is believability, I have to believe the headline.
I would guess that it was #2. Fear and avoidance of pain is a big motivator.
I vote #1.
Why? I read it.
I tuned out of #2 after a couple of sentences.
I also vote #3, that everyone who responded to this gets the mp3.
#2 — Fear of loss is greater than the desire for gain.
#1
It’s positive. What I think about, happens! Faith is thinking about things I want to happen. Fear is thinking about things I don’t want to happen.
#2.
I’d only buy from the #2 ad, even though I like the guy better in the #1 ad. Truthfully, I’m more interested in NOT getting wiped out than I am in his wonderful personal story and soft approach.
Definitely the first one, everyone wants to be rich
#1 because of the story behind it and everyone is looking for the last way to get rich!
The real answer is that it’s not about guessing, but about testing. If Ted couldn’t or better wouldn’t guess, then why should we? A great lesson in here for me is, that he tested two very different approaches and not just headlines. Though that might have happened before. Now, I’d like to know which one won, yet this may very well be irrelevant for whatever I sell. Testing is the message.
A wise observation, Volker.
number 1
villain
personal story
specific number how many copies are sold
explains what to do
I think #1
The manner of speech in #2 is like I’m talking to my lawyer about this.
In #1 this guy GETS IT. He connects with the frustration with the government and the rich, untouchable jerks they serve, etc. etc. etc.
And he tells you about it in some of the simplest copy I’ve ever come across.
Plus he makes the *book* sound so easy too!
#2 sounds again like I’m going to have to retain legal counsel and do a whole bunch of work.
By the end of #2, I’m not even really sure what he’s got for me.
But if I were the target market, I’m betting I’d be sold just based on the portion of the text from #1 and ready to buy.
I vote #1
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