Transcript of Frankel's Free Clinic October 23, 2000

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:00 AM): Greetings everyone!

Mickie_mkennedy@daytips.com (10/23/2000 9:01 AM): hello

steve.siegel@missionaccomplished.com (10/23/2000 9:01 AM): g'morning, Rob, and all.

Mickie_mkennedy@daytips.com (10/23/2000 9:02 AM): Question?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:02 AM): Go for it Mickie.....

Mickie_mkennedy@daytips.com (10/23/2000 9:03 AM): I have a buyout offer for 1.75 per unique subscriber. I have 600,000 unique sending out 1.2 million newsletters a day.

Mickie_mkennedy@daytips.com (10/23/2000 9:03 AM): Should I shop company around or just accept offer? I feel worth is closer to $4 but this person won't go higher.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:04 AM): $1.75 per subscriber?

Mickie_mkennedy@daytips.com (10/23/2000 9:04 AM): Where does one find a broker for company? Should I just call Lifeminders, etc.?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:05 AM): Before you call ANYONE, Mickie, push the deal as far as you can. The best way to do this is by asking for a term sheet.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:05 AM): Entered the room.

Mickie_mkennedy@daytips.com (10/23/2000 9:05 AM): yes. $1.75

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:05 AM): Hi gang!

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:05 AM): The first test is finding out if they even know what a term sheet is. If they don't, that's a red flag, but you can still proceed to Step #2.

Mickie_mkennedy@daytips.com (10/23/2000 9:06 AM): They do, it's Sony.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:06 AM): If they don't know what a term sheet is, explain to them that you want to know HOW they plan on paying out. Many scam artists try to "structure a deal" that pays you out the proceeds they generate from using your stuff. BAD FOR YOU.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:07 AM): Okay, so ask Sony for the term sheet. Is it a cash deal? A pay out? A trade for stock? A combination?

Mickie_mkennedy@daytips.com (10/23/2000 9:07 AM): Cash deal.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:08 AM): When you ask for a term sheet, it telegraphs to them that they're NOT dealing with some schmuck who just fell off the turnip truck. It will make your next round of negotiations MUCH more productive.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:08 AM): It also makes them more receptive to your counter offer.

Mickie_mkennedy@daytips.com (10/23/2000 9:09 AM): Great, thanks.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:10 AM): In any case, if Sony handed me a check for $600K, I'd be very tempted to take it. I know we all have illusions of greatness, but cash in the hand is your best bet. Of course, you can also tell them that you'll take a combination of stock (for tax reasons) if you like. Once they respond to that and you KNOW they're serious, THEN get representation, at the very least, to look over the papers.

Mickie_mkennedy@daytips.com (10/23/2000 9:11 AM): Yeah, they warned me the final papers would be like a phonebook. I've worked and talked with them for a year and I am ready to deal.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:12 AM): Rob, I have a list of over 500 people... think Sony would be interested? ;-)

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:12 AM): one more thing: If you've EVER had offers or interest in the list previously, contact those prospects to let them know (subtly) that you've received an offer to "give them a last chance".

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:12 AM): That might surprise you.

Mickie_mkennedy@daytips.com (10/23/2000 9:13 AM): Will do.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:14 AM): Andy, I have several thousand on FrankelBiz and recently turned down an offer. The advertisers are starting to wake up, because FrankelBiz out-pulls ALL the other advertising/marketing lists....

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:14 AM): Nyuk, nyuk. nyuk

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:15 AM): I think we all know how powerful the FrankelBiz list is!

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:15 AM): Andy, as long as you're here, let me ask YOU something...are you using MP3 in your musical promotion? And if so, is it doing anything for you?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:15 AM): I'm thinking of using MP3 as a device.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:16 AM): I recently posted our one CD's MP3s on our website, and have had quite a bit of downloading (lot's more than I thought we'd see.) Don't know yet if it's doing any good for us, but I love the activity on the website!

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:17 AM): What kind of audio are you distributing?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:17 AM): There are two items, totally unrelated. one is musical and the other is under wraps.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:18 AM): I'm always testing theories on this stuff.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:19 AM): Well, if it is speech-only, it can be recorded at a much lower sampling rate... makes for nice fast files and downloads. I think it's an excellent vehicle for audio books and seminars, and there are a few places emerging that distribute this kind of content. Should grow into a big new segment.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:21 AM): MP3 is certainly becoming one of the most widely accepted file formats. Watch for Car-players and home stereo units to become mainstream in the next few months.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:22 AM): Yeah, I may be venturing into that arena (spoken word).. What are those sites? Got any favorites?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:24 AM): Small group today....anyone else have an issue?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:24 AM): This is your chance!

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:29 AM): Sorry, had to take a call. I'll look up the sites and get back to you.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:30 AM): I remember you talked a while back about an audio version of your book. Have you completed that project?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:31 AM): No, I haven't done that...but I am thinking of doing a tape series.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:31 AM): You'd have to archive it by chapter, but that might be a good way to test the water. Record a chapter at a time and make it available to buy by chapter

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:31 AM): This one would be aimed at different segments of the market.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:32 AM): Of course, if the market for paid audio dries up, that eliminates it as a profit center and means it turns into promotional.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:32 AM): It sounds like you can't talk too much about it, but how would you distribute (it's own website, through someone else, MP3.co, etc.)?

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:32 AM): And the further into mainstream MP3 goes, the less profit there would seem to be.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:33 AM): Pay-per-file is going to come. The question is will it be accepted.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:34 AM): It's easy to give one MP3 out for free, the problem is -- as I'm sure you know -- that when people who download the MP3 buy your CD, it doesn't take long for them to rip MP3's of the rest of the CD.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:34 AM): On the other hand, if I post an MP3 and let it go for free, it can help promote the site and the book.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:34 AM): And that's probably the route I'm going to go, unless I can nut out a plan that will sell tapes.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:35 AM): I have enough material for at least a six tape set, probably ten.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:38 AM): You have a definite market (bees)

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:38 AM): That's why I'm curious to see if any of your downloads have converted to sales.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:39 AM): No, but that's not really why they are there. The CD ran it's course at retail, and now people can download it for free. We just want the exposure at this point.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:39 AM): The question is whether people will pay for the tapes or just pirate the MP3's. So far, I haven't been able to find anyone who can point to conversion stats on MP3 to CD sales.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:39 AM): no type good today

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:40 AM): The least you can do in this kind of situation is tease with MP3. Tell people they can get the first installment of a series for free. Get 'em hooked and then sell them the rest of the tapes.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:41 AM): That's my thinking, as well. Recorded content is probably running rampant. So the only way to market recorded music now is burn-as-they-order....

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:41 AM): The question is once they're hooked, will they really buy the tapes, or wait until they can find the rest of them pirated on MP3 boards?

Panicdoc (10/23/2000 9:42 AM): Entered the room.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:42 AM): As my newsletter suggested, I'm just as hurt by MP3 as the next guy. I just want to figure out how to leverage it, regardless of the ethical question, which is just one big waste of time.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:43 AM): Good question. Frankly, if it's targeted to a certain audience, chances are it won't become mainstream enough to make it to the "cheaters."

weber emperorsherbologist.com (10/23/2000 9:43 AM): Entered the room.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:43 AM): Howdy Weber

weber emperorsherbologist.com (10/23/2000 9:44 AM): Rob, why not only record a portion of each chapter and use it as a leader?

weber emperorsherbologist.com (10/23/2000 9:44 AM): Hey Andy.

Andy TeBockhorst (tebockhorst.com) (10/23/2000 9:44 AM): Gotta run Rob (lunch date with the Mrs.) See you next week!

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:46 AM): Thanks Andy. I WON'T be recording ANY of the book. These would be NEW content, aimed specifically at specific issues.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:49 AM): Of course, each "tape" would promote the book and FrankelBiz....

Panicdoc (10/23/2000 9:49 AM): Good morning everyone. Just to pick up on the book recording thread, it all takes more time which people don't have. Nothing beats print in my experience.

christina (christina@magnatoy.com) (10/23/2000 9:50 AM): Entered the room.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:50 AM): I agree, Doc, which is why I won't be recording the book.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:51 AM): (TEN MINUTE WARNING)

Panicdoc (10/23/2000 9:51 AM): Some of my competitors put their programs on tape. People get bored after awhile and never complete the program.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:51 AM): However, the question is whether people will take the time to rip MP3's of audio tapes....

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:53 AM): Well, they may get bored, but they do buy the tapes. I believe there's still a big market out there for them. I get "speakers" tapes mailed to me all the time. I put them on Ebay and sell them to the highest bidder...and they do sell!

Panicdoc (10/23/2000 9:54 AM): Yes, you're right, people will buy them.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:54 AM): So I think there's still a viable market out there, at least for another year or two.

Panicdoc (10/23/2000 9:55 AM): I'm planning to use a tape for an introduction to my program/package.

Panicdoc (10/23/2000 9:57 AM): Incidentally, I sell tapes now. People will buy a single tape or set if it meets a specific need.

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:57 AM): Doc, how much are you pricing your tapes at?

Panicdoc (10/23/2000 9:57 AM): The most popular is called Anti-Panic, which is done by a psychologist in NJ

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:58 AM): (TWO MINUTES)

Panicdoc (10/23/2000 9:58 AM): 15.95 is the cheapest. I sell a set of 3 relaxation tapes for 49.95

Rob Frankel (rob@robfrankel.com) (10/23/2000 9:58 AM): How are sales going for you?

Panicdoc (10/23/2000 9:59 AM): Sorry to have gotten in late. See you next week.

Panicdoc (10/23/2000 10:00 AM): There is a constant demand. Price seems almost irrelevant as far as the person's needs are concerned.

Rob Frankel (rob@robfrankel.com) (10/23/2000 10:00 AM): Okay, you guys, I've gotta run. But you are most welcome to continue as long as you want. You can also use this site to meet any time you like during the week. See you online!

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