Acquire New Customers... Without Spending $1K/M (1,696 words)

(And, in the six years since Schmid posited that rule, a new medium, the Internet, has taken hold.)

Lillian Vernon, John Peterman and The Sharper Image's Richard Thalheimer began their businesses by offering merchandise via small, highly targeted space ads. The C. Crane Co. advertises its radios and other survivalist merchandise on Art Bell's late-night talk show. Curt Strohacker of The Eastwood Co., a cataloger for automobile restorers, drives people to his Web site, fulfills quickly with a catalog and offers wonderful customer service.