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Tip for September 29, 2004

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Using a Bonus to Increase Sales, Part 6 of 6

The final lesson involves avoiding an upfront investment in bonus inventory.

Because the Sports Illustrated bonus is a video, and it's relatively inexpensive to print and mail an additional copy of a magazine, the economics of the Sports Illustrated promotion are very cost effective.

By using a video as a bonus, which can be "duplicated on demand," in contrast to printing thousands of copies of a bonus book and hoping demand will materialize, Sports Illustrated is protected from a heavy investment in a bonus which doesn't generate great demand.

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