Offline Arbitrage is the latest small course from Ryan Deiss and this time it's about self liquidating leads.
This sounds a bit technical doesn't it? Offline arbitrage? Self liquidating leads?
Basically this is about list building using offline techniques and doing it in a way that means you can build a big list of buyers for little or no money using offline marketing methods.
This is espcially important because offline buyers are said to spend an average of 4 times the money per lead that online buyers do.
I couldn't resist it. I watched Ryan's excellent sales video on Offline Arbritrage and bought it immediately but then i'm a big fan of the stuff Ryan puts out.
Offline Arbitrage - affiliate link
Let's step back a bit before we get into the nitty gritty of the review.
Offline Arbitrage Is Not A Ryan Deiss Product
Just like the very successful products Let's Get Social (on becoming a social media manager), Rank Mogul (on setting up as an SEO expert) and Mobile Local Fusion (combination of Google Places and mobile marketing), Ryan Deiss has joined up with an expert.
Ryan does the marketing, the expert does the teaching and the coaching calls.
In Offline Arbritrage the expert is Luke.
Luke is an specialist in building marketing lists and the video says he's created lists of buyers which would be the envy of just about every Internet marketing guru, going all the way to the top.
Because I bought Offline Arbritrage I got to find out who Luke is.
His full name is Luke Jaten and he's had a previous product called Postcard Profits.
Quick research on the Internet shows that this course has been well received but his customer service was a big let down (see the Warrior Forum and Rip Off Reports).
This might be one good reason to partner with Ryan Deiss as I've found his customer support to be excellent. Sure I've heard about odd glitch but bad stuff sometimes happens despite the best of intentions.
If you have concerns, Ryan Deiss is offering a full 60 day money back guarantee so that gives you plenty of time to take a good look, try it out and decide if you want to keep Offline Arbitrage.
Offline Arbitrage - affiliate link
What is Offline Arbitrage?
It's a video course on how to create self liquidating leads using postcard marketing.
In Ryan's video he describes it as a six module course with three bonuses:
- Module 1 - how to select the most profitable markets
- Module 2 - where and how to rent the raw buyer lists
- Module 3 - how to put together a killer mail piece in 30 minutes or less
- Module 4 - how to test
- Module 5 - How to scale up winners
- Module 6 - how to sell your leads back
and
- Bonus 1 - Luke's rolodex of list brokers, mailing houses etc
- Bonus 2 - the 27 best niches with the best buyers
- Bonus 3 - 4 weeks Q&A calls
When I get inside, the Offline Arbitrage course is different.
- Module 1: Getting Started
- Module 2: The Market
- Module 3: The Product
- Module 4: The Mailing List
- Module 5: The Postcard
- Module 6: The Recorded Message
- Module 7: The Wrap-Up Script
- Module 8: Testing
- Module 9: Rolling It Out
- Module 10: Putting it Together
There is also an extra training on self liquidating leads. You seem to get the same content that Ryan Deiss promises in the sales video, but it comes in a different form.
Then in the bonuses, you get the three Ryan promises plus what's called the $16.9m Swipe File from Luke's successful campaigns.
The 27 best niches document isn't loaded yet and the rolodex is a short list of names and contacts. Addresses aren't given so I suspect that these are all in the United States. Very useful though if you want to get stuff done there and potentially a big time saver..
Offline Arbitrage Review
I've just bought the product so it's going to take some time to go through it.
Initial impressions are good.
It looks well put together and comprehensive.
OK here is the detail.
Module 1 - Introduction to Offline Arbitrage
In this first module (35 minutes) Luke Jaten goes into his background and how he discovered these secrets. It seems that in seven years, he's generated $35 million of direct reponse sales. It all started with a $59 product (note this doesn't require a big $1,997 guru style product launch) where Luke got great returns back on a test mailing of 1,000 postcards.
He then gives an overview of the process in Offline Arbitrage starting with establishing your goals and then takes you through the arithmetic.
Module 2 - Pick Your Market
In this second module (26 minutes) Luke goes through the characteritics he looks for when choosing a market including whether you should focus on a narrow niche or a wide mass market.
Module 3 - The Product
Once you've decide which hot market you're going to concentrate on, you need to find the right product which matches the needs of your possible buyers.
According to Luke in this 41 minute module, price points are important and high margins are critical. It's best if you have your own product.
Module 4 - The Mailing List
Once you've selected your basic offer (product to market match), attention has to turn to how you reach your potential customers. In this 36 minute module, Luke goes into detail on how to select your mailing list. he even warns you that while he can teach you what to do, trial and error and the feedback from testing will be an important part of your success.
The better you match up your list and its buying history with your offer, the more likely you will pick a winner. Suppose you're selecting an investment product for $99, then you're ideal list is someone who has bought something similar (not identical) in the last 30 days by direct mail at a similar or more expensive price point.
Why do people buy again, because they are interested and "hot".
Think of something you are passionate about - it might be internet marketing programs. Just because you've bought one doesn't mean to say that the itch is scratched and you now know everything you want to know.
Often the more you know, and the more you turn that into success, the more you want to know.
Getting the right list is critical and Luke goes into a lot of deal about how you deal with list brokers (people who sell mailing lists).
Module 5 - The Postcard
So far in Offline Arbitrage, you've selected your market, found a great product and bought your list. Now you need to communicate your offer inh a way that gains attention and encourages them to take the next step.
In this 30 minute module, Luke explains how to create your postcard.
Forget about what you think you know.
A winning postcard can be an ugly sucker iof it gets read and moves your prospect on to the next level.
Module 6 - The Message
In Luke's system, the postcard persuades customers to call a telephone number to hear more details. He recommends Dan Kennedy's book The Ultimate Sales Letter.
I agree it is excellent and you should buy it if you have any interest in direct response marketing.
Could this be to a website with a video sales letter?
Yes I think so assuming you haven't picked a niche where Internet usage is low. Ryan Deiss has an excelelnt training program called Video SalesLetter Formula.
Personally I think it's something you need to test.
Module 7 - The Wrap Up
In this 13 minute module Luke explains how to take the orders.
Module 8 - Testing
This is critical in any direct response campaign and at 39 minutes, it's one of the longest modules in Offline Arbitrage.
As Luke explains, you've got two levels of testing.
The first is, do yiou have a winning campaign?
The second is about making this money making campaign even better by changing variations in your marketing like the price, the payument terms, elements in the postcard etc.
This is where the arithmetic of your offer come into playb as you trade off costs of your marketing, response rates and the profit margin on your offer.
Module 9 - Rolling It Out
Once you've found a winner, the idea is to reinvest your profits so your money makes more money.
In this 16 minute module Luke explains how to expand and how to make sure that your list broker hasn't tilted things unfairly in your initial test mailing.
Module 10 - Putting It Together
This is a summary of the process where Luke reinforces some of the elements of the Offline Arbitrage system.
Self Liquidating Leads
There is a sperate training session on how you can sell your leads back to a list broker.
There you have it.
A fairly quick summary of what offline Arbitrage is all about.
This is about getting you offers out to the wider public.
It's more effort than Internet marketing and costs can stack up, just like with Pay per Click.
The big problem with focusing on Internet searches is that you are surrounded by your competitors all shouting out loudly "Don't buy from him, buy from me".
Postcard marketing lets you get to buyers with problems before they've started the search. It's a different type of marketing but the big mailing houses show that it can be very profitable when done well.
In my opinion, $97 is a very fair price for a video based training course with 4 Q&A sessions. A bargain in fact if you'll take action and implement.
Offline Arbitrage - affiliate link
What Are The Offline Arbitrage Upsells
This is Ryan Deiss, so you know there will be upsells.
The video stopped part-way through so I never got to disover the full deal but Ryan talked about solving 3 problems
1 - not having products to sell - there's an offer of 27 PLR products which you can use and customise as you want. These match the 27 profitable niches used by Luke.
2 - not being a good copywriter for the postcards - the Offline Arbitrage course goes into thie anyway but some copywriting novices may want more support.
3 - not knowing how to create squeeze pages - this is easy - I recommend OptimizePress
Because the video got stuck, I wasn't taken to the webpage to create my user id and password. Fortunately the email confirming the purchase gave me details but if you escape from the upsell, you'll have the same problems.
I'm not a huge fan of private label re-sell rights stuff. Perhaps it's just an ego thing rooted in "not invented here" thinking. However it can take many months out of getting products created, even if you use the PLR product as the base and re-title and re-write some of it.
Is Offline Arbitrage Right For You?
Can you afford to spend $97 without making sacrifices in other important areas?
Are you interested in building a list and will you take action?
If the self liquidating leads aspect of the course is essential to you, are you based in the United States?
I'm based in the UK where the direct mail and mailing list industries are much less developed than in the U.S. We have different privacy laws and in the UK, the Data Protection Act. I therefore have doubts on whether you can recoup your money by selling off the leads. Since our laws are usually based on E.U. regulations, I'd expect that to be the case in much of Europe as well but I'm not a lawyer.
Remember Ryan talked about betting in a casino where you got your money back if you lost and kept your winnings? It's a very appealing analogy but it relies on selling on your leads to a list broker.
Let me be clear. I don't think that invalidates Offline Arbitrage as a way to build lists and generate money. There's no reason why postcard marketing shouldn't work here although the mailing lists available are less specific on spending habits (but can be strong on demographic issues). In fact I know postcard marketing works here and in some ways direct mail can have more impact because it's not used as much.
I've heard a number of Internet marketing gurus selling digital products say that the real secret to making big money is to combine online with offline marketing.
The Internet primarily requires someone to be searching for a solution to a problem he or she recognises and is motivated to solve. Many people are too busy or the problem hasn't reached the level of urgency but that doesn't mean that people won't take action when you make it easy and simple to find and buy a solution.
Offline Arbitrage looks good as a postcard marketing course.
Offline Arbitrage - affiliate link
Why Would You Want To Sell Off Your Customer List?
The pitch for Offline Arbitrage is interesting with the idea of recouping your marketing costs.
But do you really want to do it?
Your customer list is one of the most valuable things you have and plenty of money can be made on the back end if you have an attractive product ladder of different solutions at different price points, good quality and good service.
I understand why magazines sell off their subscriber lists because it's an extra revenue stream. They don't have the products to get extra value from the list.
But as an ambitious information marketer, you probably have intentions for more products of your own or affiliate promotions. It seems silly to burn out your list when the big money could be in keeping your list secret and the relationship strong.
Reasons To Buy Offline Arbitrage
- You want to increase your sales.
- You can see the potential opportunity offline marketing gives you to reach potential buyers who aren't searching online.
- Online marketing with PPC/SEO is expensive (in terms of time or money) in your niche.
- You've got a high margin product which offers a low break even conversion rate - i.e. you don't need to sell many before you're in the money.
- Your online marketing efforts are not producing results (because you can't get traffic) and you'd like to try something different.
Reasons Not To Buy Offline Arbitrage
- Online traffic in your niche is cheap and plentiful andnd you don't want or need more.
- You don't have the cash to fund an offline marketing test - you'll have to hire the list and pay for the postcards to be printed and mailed before you see any return.
- You have a low margin or poor quality product which will rewquire an unrealistic conversion and retention rate to make money.
- You won't do the work necessary in putting together an offline marketing campaign and you wouldn't outsource it.
If you're unsure and don't have time to go through the trainings, then it's probably best to let the offer pass. You're not going to get an immediate payback. I'm not sure how long Ryan and Luke will keep the offer open but even if it closes, evidence suggests it will return one day.
If you're unsure and have time to investigate Offline Arbitrage, I'd say give it a go and if necessary get your money back under the guarantee.
Offline Arbitrage - affiliate link
Affiliate Bonuses On Offer For Offline Arbitrage
My other job is as a business coach and that's about helping entrepreneurs take purposeful action quickly to seize opportunities while they still exist.
Offline Arbitrage is a $97 product and affiliate commissions are around the 40% mark.
Putting to one side the distractions, the risk of conflicting information and the time spent going through any product, what kind of bonus products do you think are going to be given away by an affiliate eager for less than $40 commission?
Seriously if you're on a bonus hunt for Offline Arbitrage then I think you need to be asking yourself whether it's the right product for you.
You're going to get your money back on Offline Arbitrage by putting the ideas to work. Anything that delays that action is bad news.
My view is simple.
Sure I'd like to earn affiliate commission from sales of this product but I only want buyers who are going to get value from it.
I curse a bit when I see refunds but at least I know those people give the product a try and decide that it's not for them.
Why buy through my affiliate link?
Well basically you will be rewarding me for writing honest reviews and assessments and putting my own time, energy and money on the line.
Hopefully you're tired of fake review sites that just want you to buy, irrespective of whether you're likely to get value.
Offline Arbitrage - affiliate link
What Do You Think About Offline Arbitrage?
If you've bought Offline Arbitrage and gone through the product or you've watched the sales video from Ryan Deiss but you're not sure whether to buy, I'd like to hear from you.
Or did you buy Postcard Profits from Luke Jaten? What did you think?
Or have you promoted an online business with offline marketing?
Ryan Deiss Affiliate Disclosure
I am an affiliate for Ryan Deiss and if you buy after clicking through from my link I may earn a commission (it's complicated depending howw the cookies work).
I was one of Ryan's early affiliates and I have been given complementary access to his Total Access Club. That means I see a lot of what Ryan does and I know that the quality is consistently high.
You shouldn't just rely on my opinion of Offline Arbitrage but do your own due diligence.
In particular, if you do decide to buy, I urge you to make the time to go through the training quickly and if it's not what you want, make use of the money back guarantee.
However if you like the ideas, make a plan for how you will implement and then do it.
Ryan Deiss Promotions For Offline Arbitrage
Here's the first affiliate email - I think it's always interesting to see the swipes.
Biggest FREE Traffic Source Ever
My buddy Ryan Deiss just uncovered a source of FREE web traffic bigger than Google, Bing, Yahoo and Facebook...
(drumroll)..... COMBINED! --- Seriously!
This changes everything! This is easily the biggest IM breakthrough of 2011.
He just made a FREE video that spills the beans.
Go watch it NOW!
Click Here => Offline Arbitrage - affiliate link
HINT: This is why GIANTS like Forbes, Agora and Boardroom couldn't care less about Google, Facebook, Bing or ANY website for traffic.
Are you a small fry or do you wanna swim with the big fish? I know which way I'm going.
You better figure this one out quick.
- Paul Simister
P.S. This is Free traffic WITHOUT S.E.O.
I promise, you have NEVER heard of it before.
Go watch this video NOW!
Click Here => Offline Arbitrage - affiliate link
A great way of figuring out if direct mail is right for you is your break even point is nailed down. When the amount of money you will need to break even put a dollar number, can you figure out if it is worth the investment or may not. Once again, $ 100 to $ 150 range you choose a product to make it worth your time and money will be required. Direct mail to work best when you are above $ 100 is the product looks. They also confirm this in offline arbitrage.
Posted by: Ricky | January 27, 2011 at 08:47 PM
Here the new concept of Offline arbitrage introduced by Ryan Deiss & Luke Jaten.This is technique to build list of offline buyers.Now a days purchasing is doing more by offline buyers than online buyers.Good concept to know.
Posted by: Wilson | January 27, 2011 at 10:28 PM
Ricky, I completely agree that you've got to understand the arithmetic around break even points for direct mail.
The problem is that it's guesswork until you've tested and found out typical conversion rates for opt-ins and buyers.
Bigger profit margins mean that you can accept lower conversion rates and still make money. Alternatively when you find a winner, money comes to you incredibly quickly.
Wilson, to clarify, according to Ryan Deiss the average offline buyer spends more than the average online buyer.
If you think of the difference between buying from a retail store, a catalogue or a website, you can see how other items are more likely to attract your attention in a retail store or brochure. The internet relies on presenting upsells after purchase but many of us get weary and click off as soon as we see them.
I must give credit to Ryan Deiss. he sure knows how to create buzz around a product and I'm seeing a lot of traffic for Offline Arbitrage already.
I'm sure this is going to be another big hit. I think that's because it's being sold a reasonable price.
Posted by: Paul Simister | January 28, 2011 at 08:44 AM
It looks like the gurus are getting involved with Offline Arbitrage.
I had an email from Frank Kern this morning promoting it.
I'm pretty cheesed off to be honest since it looks like Frank's got an affiliate link and I haven't.
Posted by: Paul Simister | January 29, 2011 at 01:13 PM
I started the thread on the Warrior Forum about Offline Arbitrage.
http://www.warriorforum.com/internet-marketing-product-reviews-ratings/323028-offline-arbitrage.html
There's already some interesting comments.
Copywriter Harlan Kilstein is sceptical. Others say the Postcard Profits course from Luke Jatan was good.
Posted by: Paul Simister | January 29, 2011 at 01:16 PM
Like the author of the review above, I live in the UK. At 70, I have had about 14 years working on the internet, not to make a fortune for myself (I have enough money), but to enable my disabled adult daughter to get off benefits and into her own house before – rather than after – my death or exhaustion, whichever comes first!
I have had modest success on the internet, with the emphasis on modest. I am an expert in the English language, having spent some 50 years writing, teaching, examining, editing, proof-reading, etc. I can spot a missing apostrophe a mile off! I just love writing, anything from an email to a book.
My daughter’s disabilty and the needs of my aging husband take up many hours per day, so my situation is somewhat different from that of most internet marketers. That said, I can sit at my computer for some four or five hours a day normally.
In conclusion, I do need to make money in some way as quickly as I can if I am ever to ‘retire’. I don’t know whether the UK is the right place to experiment with this course, interesting though it sounds and possibly relatively untested though it is here, which could be an advantage? I wonder, though, if the content, the recommendations and the contacts are sufficiently relevant in the UK. Your thoughts and comments would be appreciated.
Posted by: Jill Bray | February 01, 2011 at 08:39 PM
Hi Jill
This is where the economics comes in.
If you have your own product with high margins whilst at the same time very competitively priced, then Offline Arbitrage is worth a try.
Mailing lists in the UK are much less developed than in the US so it will be helpful if you have an offer than appeals to a strong demographic (i.e. specific fact about the potential customer like age, location, job, sex etc). Demographic information is available.
Direct mail can be wasteful and expensive which is why the quality of the list is critical. the more you can weed out non-buyers in advance, the more you stack the odds in your favour.
That's why it's important to test and to test small. Then if you think you've found a winner, gradually roll out.
The nice thing about the type of marketing in Offline Arbitrage is that once you've got something that works, it is easy to extend.
Posted by: Paul Simister | February 02, 2011 at 07:54 AM
Thank you so very much for taking the time to make an honest and detailed review of this program. How refreshing! It was very helpful for me. : )
Posted by: Marie | February 07, 2011 at 03:30 PM
Thank you for your helpful comments, Paul.
Posted by: Jill Bray | February 12, 2011 at 09:46 AM
I purchased this, and I've started the first few modules.
First off, the immediate upsell after purchase($297! or maybe $197--can't remember.) might as well have said, "Sucker." (Then a $1 upgrade...which I DID spring for.) It was very off putting--like I'd only purchased a fraction of what I REALLY needed to make money.
I am disappointed that many of his postcards he shows are IMHO, borderline... misleading at the very least. And he admits it! "Yes, we made this postcard LOOK like it was a job offer! But it isn't really a job offer." People do not like to be misled. At least I don't.
That said, I think if one could come up with one's own product instead of using his (seeming-to-me to be borderline sleazy) niche suggestions, this could work.
Yes, you need up front money.
Posted by: Pia Sue | March 01, 2011 at 02:46 AM
Thanks for your comment on Offline Arbitrage.
Sorry you don't think much about the upsell. As I say in the review, I wasn't convinced about their value.
I think this issue of your product or an affiliate product is important since it plays such a big role in the break even calculation.
Posted by: Paul Simister | March 01, 2011 at 06:27 AM
Thanks Paul! This is a helpful, honest review; what a rare thing in this greedy industry! Keep it up, Daniel
Posted by: Dan the shed builder | March 11, 2011 at 07:22 AM
Hi, It's now Oct. Have you or anyone you know been successful with this product?
I have just stumbled upon this and found your website. I do appreciate you honest review of this.
I have the time, money, and fortitude to make a go of this but don't want to buy something that has been discovered to be "less than advertised".
Oh, I don't have my own product...is that a problem?
Thanks,
Doug
Posted by: Doug | October 22, 2011 at 01:24 PM
Doug I haven't used Offline Arbitrage myself to promote an info product (because I've taken it off the market after my site got hacked) or to promote my services (because I haven't been that hungry for clients).
The content is good and postcard marketing continues to be a good way to get your message across although success can vary based on the market.
Not having your own product changes the economics/arithmetic of the process which makes it more difficult to get into the black and more risky to test unless you have the next best thing:
1 - an affiliate offer with close to 100% commission - they do exist
2 - you are the first in the area to market a high quality PLR product or you take it and adapt it to make it unique.
Posted by: Paul Simister | October 22, 2011 at 04:21 PM