Re: K&B response Part II - The long reply!!!

> 1. Do you sell promotional items full time as a K&B dealer?

Covered in my earlier post.

> 2. Have you "specialized" in any particular market or product?

Not exactly. I started out by diversifying my business to reduce risks of economic cycles, as well as to build a large customer base as quickly as possible. I purposely expanded my business gregraphically, industry-wise, product-wise, and eventually online. Focusing on too narrow of a niche, which may seem beneficial to some, can leave you subject to economic cycles as well as to new competition in your chosen niche.

Eventually, I did find the bulk of my business was coming from 4 categories -

(A) Healthcare - My single largest client is a local hospital, with 7 different buyers there ordering for their departments, along with the Maketing Department, which orders for at least 7 different departments. I have a number of other hospital buyers, with a few in my region as well as online.

(B) Financial - Banks, Credit Unions, Insurance Agents/Agencies, and Finance Companies. Some great business if you aren't in a banking market that has been
taken over by all the regional and national banks. If you buy insurance for your car, home, life, etc, consider asking your agent for a few minutes of their time. They may be able to order within their insurance company, but unless it saves them money, they may prefer to order from a client such as yourself.

(C) Education - Every school from local elementary to vo-tech and universities use our products. It's a bit more seasonal than other industries, but still worthwhile.

(D) Retail - Businesses have prospects they need to reach, as well as existing clients to thank, and employees to motivate and reward. Think car dealers, aftermarket sales and service, telecommunications, furniture, etc.

> 3. What do you believe is a realistic expectation of gross income for the
> first year?

Hire a business consultanting firm, pay them $5K to $50K to evaluate your market, access both you and your competitors strengths, and they still will only give you a range of what you can expect to sell. A major factor will depend on your determination, drive, and discipline. This isn't an industry where you can join the local Chamber of Commerce, put an ad in the phone book, and expect to earn a living off the calls you will get. It takes effort to penetrate a market for any new business - this one is no different, whether you plan to sell strictly online or off, or pursue both at once.

Even if the FTC didn't restrict income claims, I don't like to make statements about what I earned last year, or what other K & B dealers have done. We are all individuals and serve different markets.

Any prediction I could make could miss the mark wide on either side, high or low. It really comes down to how much you effort you put into it, as well as pure luck. One day you'll walk in and here, "Perfect timing, we we're needing to order some promo items", and the next day hear, "We just re-stoked our closet, come see us next year."

Also, this isn't a "get-rich-quick" type business. This industry lends itself very well to the relationship style of selling. Connect with your customers and you can build a customer base that will provide you with an excellent career and income for the rest of your working life.

> 4. What other costs are there that will reduce your gross income and by
> how much?

With Kaeser and Blair's opportunity, they cover a lot of the financial expenses (along with a major part of the administrative burdens). You can limit many of your expenses to fit within your budget, letting your commission income finance most of your expenses for equipment and growth.

If you have a computer and internet accest, you've got some of the major expenses covered. As your income grows, you might buy a copier or multi-function office machine for fax, scan, copy, and print functions to better serve your clients. Your order forms are provided free of charge, along with the envelopes for mailing them in. And all your calls and faxes to K & B are via toll-free lines. Industry catalogs are privided at no cost to you as well.

> 5. Is it realistic to believe you can make decent money doing this
> business on the internet AND in person?

Absolutely! My K & B business has provided 90% or more of my family's income since I switched my sales to them in Feb '93. No more looking for sidelines or part-time jobs to support my business.

> 6. How/where do you find your customers?

I started with cold-calling but didn't care for the poor conversion ratio. Early on, I joined the Chamber of Commerce and began networking through there. Many of my early clients came from networking or through referrals from satisfied clients. I still make an occasional cold call, but have done so with only targeted accounts of my choosing. Of the 4 cold calss I've made so far this year, I've converted to to customers - both in the health care industry.

I expanded online back in '98, and have built up a small base of loyal clients who have been ordering from me for 4 to 8 years.

I've added new clients to my business every month for the past two years without fail, including after the evacuation and devastation of Hurrican Rita in my primary market. Many of my new clients come from referrals from existing customers.

> I know it's alot to ask, but if you could do your best to let me know, I
> would appreciate it. I am looking for supplemental income that I would
> like to replace my job with permenantly within a couple of years.

I started my business on a part-time basis back in '84, long before the internet became a market place reality. Starting today should be even easier for you.

For more details on the opportunity, or a look at the range of products and prices, visit my website - www.CuttingEdgeAdvertising.com/opportunity.html. If you need more info, just click on the link to receive your 3 1/2 lb. opportunity packet.