Richard Schmidt uses current news and his ties to the Bush family to promote his Stellar Stock Report.

The 24-page, full-color magalog promoting Richard Schmidt's Stellar Stock Report features six photographs of various members of the Bush family:

* President George W. Bush alone on the front and back covers.

* Two shots of Schmidt with the President, one with the caption, "Richard Schmidt backs the President on his bold economic policies that will fuel this new bull market"; the other with the caption, "Richard Schmidt's financial skills have opened many doors."

* One with him and his wife, Tami, with Florida Governor Jeb Bush and the President.

* And one with him and his wife with former President George H.W. Bush ("The Schmidts during a visit with George Bush Sr.")

The photos of the President by himself are tied into current news. The cover proclaims in bold all-caps, "BUSH'S BULL MARKET CAN DOUBLE YOUR WEALTH IN 18 MONTHS!

"Don't listen to today's bears! Here is overwhelming evidence that we have already entered the first stage of a new bull market.

"Discover how the President's multi-billion dollar tax cuts will stimulate growth under the same strategy that Ronald Reagan used to spark 19 years of prosperity!"

The back-cover photo of the President behind a lectern with his arms stretched out is accompanied by the headline, "A bull market is charging our way--and George Bush is riding in the lead!

"Don't believe it? You will after you read page 6."

Wins Gold Award from The Newsletter on Newsletters

The magalog ran away with the 2004 Silver Award in the Newsletter Promotion Awards Competition in the Investment Newsletters category.

Craig Huey, who is president of Creative Direct Marketing Group and who prepared the package, provided the following statements to accompany the Competition entry.

Marketing challenge

"Since 2000, investment newsletters have lost over 50 percent of their subscriber bases. Over 40 investment newsletters have ceased publication. This has resulted in a dramatic weakening of marketing results as the investors have cut back on subscriptions and fled the market. The result has been a much small number of names to mail resulting in much lower response rate.

"Stellar Stock Report had dropped from a high of 14,000 actives to less than 6,000. All marketing efforts lost money."

Objectives

* "To create a mailing package that at least is break even."

* "To convince the skeptical audience fearful of another downturn that now is the time to invest."

* "To position a relatively unknown advisor as the best way to make money in 2003."

(The 2004 Awards Competition, with a November 30, 2004, deadline, allowed DM packages written anytime in the previous year.)

The Cceative solution

* "We decided to use current news as the key hook:

+ "The popularity of President Bush among investors."

+ "The popularity of the tax cuts among investors."

* "We positioned the editor, Rick Schmidt, as the hero who not only told the story of the new bull market but also knew the author--President Bush.

* "We used a 'reportalog' format instead of an envelope to better use the available pictures."

Results

"Response rates were above the pre-2000 levels, resulting in over 4,800 new subscribers in less than six months of mailing. It is projected that the subscriber base will exceed Year 2000 levels in less than six more months."

New control

In response to his winning the award, Rick Schmidt sent us "our promotions for 2005, which have been tremendously successful this first quarter."

The two new magalogs bear striking resemblance--similar photos of the Bushes and similar copy--to their award-winning predecessor.