- 3,995
Dont do it.
Help with DIY direct mail
- Thread starter Nicolacrayola
- Start date
Joel T
Expert
Baseball
Can u be more specific?
Dont do what?
Thx
Can u be more specific?
Dont do what?
Thx
- 4,138
If you're mailing to T65, once isn't going to cut it. 8m is great, but they won't contact someone usually until 2-3m out.
The point of 8 months is to build name recognition and this is especially true if you mail locally.
I mail every 5 weeks. Enough time for them not to forget me, but not so close together that it's annoying.
The point of 8 months is to build name recognition and this is especially true if you mail locally.
I mail every 5 weeks. Enough time for them not to forget me, but not so close together that it's annoying.
Thanks, Travis!
We currently have 7 letters - but if you have your own content that you want to write, you certainly can. (or if you need edits on ours, that's fine too).
Marketing mail cost depends on (a) Entry Point and (b) Price Category.
If you drop your mail at a local entry point (i.e. "none") then it'll be between $.302 and .311 depending on how spread your mail is (AADC vs Mixed AADC).
If you mail from a DNDC, then it's between .282 and .291.
Here's a breakdown if you want to DIY.
Of course, you can certainly use us and we'll do it for you, but if you want to DIY, here is what to expect and some insight into how to do it:
Physical Costs
- Paper: You can get it under .01 if you buy in bulk - estimate $.01
- Toner: I get bulk rates due to quantity and pay under .01 per page -- but my printer is a few thousand dollars. Print using a "small office" toner printer and you're probably at .02-.03 per page (plus, you need to aggregate the cost of time messing with changing toner / drums -- trust me, been there, done that).
- Envelope - you either need to use double window, or no window w/ printed font. We recently upgraded to allow for no window w/ hand-font, and they look pretty good. Plan on 5-6 cents per envelope if you are bulk purchasing.
note: if Printing envelopes = more time & more toner cost
- Printing. You may think, "well, once I have it all set up, printing takes no time." Guess again. It will take your time or you'll need to outsource. Maybe a spouse or family member can do it for you. If using small capacity printers, you need to add paper... change toner... etc.... i.e., it takes time to print.
- Fold/Stuff/Stamp
This is where it gets bad.... We have a fold/insert-seal machine that does the folding and inserting and sealing. We also have a separate folding machine that we use at times for some small projects. If you don't have at least a folding machine --- and want to DIY - just stop now. You'll want to hurt someone and go postal, and that's not good for anyone. Buy at least a folding machine if you are going DIY.
Folding machines (good ones) are close to $1,000 - folding/inserting-sealing machines are a lot more.
If you get just a folding machine, then you need someone to stuff/seal.
Stamping - you can do it in small quantities but if doing a lot of mail, you'll either want to outsource and pay someone or get a stamp affixer (also, expensive).
- List management: You need to take the list which you purchased and update it w/ NCOA to stay in compliance. That takes both time and $.
- Delivery: You then tray it and take it to the post office. That, too, takes time. You also need to fill out your statement.
- If an agent earns $150,000/yr selling Medicare-related insurance, then their hourly is easily worth $75-hr. He/she should not spend their time putting together mail to save a few dollars on marketing costs.
- If you are doing it DIY, you'll need a reasonable printer. You may already have that... but depending on volume, you may need to upgrade.
- You need space - literally, you'll have boxes of paper and envelopes that you just purchased in bulk. Shelf space for your toner boxes....
You also need space for your trays - a spot for mail that is "done" - another mail that is "partially done" etc...
When you aggregate all costs (physical cost, labor, general overhead) - across the spectrum - and account for your time, you are easily at 65 cents per letter if you DIY.
Or, let us do it. I'll make a few cents per letter after I pay a few people, we'll use our machines, our permit, and you can play golf.
My goal w/ t65inbound has never been to compete with the big mail houses. It's simply a slightly different approach to the more popular t65 marketing methods - when people call in off the letters, it's a little easier sale (my opinion). It's not the cheapest marketing -- but cheap was never the goal.
- 710
The cost of direct mail piece is 75 cents. At 1,000 flyers, you are spending $750 per mailing. If you mail every 5 weeks for 5 weeks (6 months out), then you are spending $3,750 on the campaign.
You need 6 sales to break even ($675 commission per Medicare Advantage...double for Med Supp).
What's your rate of return on of sequential mailings to 1,000 T65 prospects and average closing rate?
The rate of return in my Los Angeles area is <1%. At 1%, I would get 10 returns on one mailing.
Thanks for the input.
Bottom line what does it cost for you to mail 3,000 per month? I think some place it say .75 per piece, how does someone contact you?
- 4,138
My mailings are not .75 each.
My non-labor costs equal out to .41 each. HOWEVER, I also do the labor aspects.
I'd challenge what Scott said on a few things:
1) My folder only cost 100$, but they don't even sell it on Amazon anymore (I've had mine for a year) but you could get away with a 300$ unit.
2) I use an office printer, I think it was 500$. I use a 12k low waste toner. My page cost is about what he says.
3) NCOA is a pain, but if you use Melissa they give you 1k records for free a month. If you run just the NCOA under listware online and don't go over 1k, it's free. Then you run the addresses again under Postal One when you do IMsb.
4) You're going to need a mailing permit. If you do 100% automated mailing (IMsb) it's 250$ a year. If you don't, it's 500$ a year.
5) Labor can be a pain in the ass. When I get to where I'm mailing more than 2000 a month (which isn't likely immediately), I'll probably outsource. On average, you're looking at about 2 hours per 100 letters printed, folded, stuffed, stamped, sealed. When I pay my niece, I pay her .10 per letter, so my total cost goes up to .51. However, if I was paying an employee it'd be more expensive.
So, per 1k in letters, I pay around 410$. If I count labor, it's probably closer to 750$ However, I have a higher ROI and honestly I'd be doing it cold calling, door knocking, calling leads just the same.. so it's all a wash, imo.
Out of 1k, I try to shoot for a .5% response rate. Usually it's around 1.5% total (including deads and "Don't call me anymore") Out of that 1.5% I'll close 40%. I usually average about 600$ fyc with MAPD or MS w/ PDP and dental.
So running the numbers:
1k x .015= 15 x .4= 6 sales x 600= 3600 fyc per month.
I'd say 80% of the people that call me usually call 5-3 months out and almost always say, "I've got a few letters from you."
If you're mailing 1000 per month x 5 mailings, Scott does the double window at .69 each plus if you don't have a list 58$ one time. I like using an envelope without the windows with a handwritten font. Scott charges .72 for that.
You're "win" is breaking even. I don't think 6 sales is unreasonable at 1000 mailings.
Even using what I think is really low numbers
5000 x .05 = 25 x .25 = 6
Reasonably, I think you should see 50 leads, my close is about 40%, or 20 and I'm not giving any kind of hardcore pitch and I do everything over the phone and online. Just saying, I am absolutely under no condition a badass salesperson... period. I just subscribe to the Hank Hill style of selling.
I ask them what they know about Medicare and give them a brief summary if they don't know anything.
Ask them if they have any questions or concerns
Ask for an email address.
If their questions are answered, I cut them lose and send them a follow-up e-mail immediately with some additional resources (like video's I've done) and tell them to shoot me an e-mail or call if they have questions.
I send them a handwritten thank-you note with a branded letter opener and use the line, "I have a feeling you're going to need this."
Then I keep in contact with them monthly.
Sometimes they're ready to do something immediately to take it off their plate. We do it. Sometimes they take a little bit more time.
Frankly, my style isn't for everyone. I'm okay with someone going with someone else. I also refer people out that don't work my way. I think part of why my closing percentage is so high is because I give off the vibe that I'd like them to pick me, but it's no skin off my back if they think I'm not the right agent for them.
My book is smaller, but it doesn't churn.
I know that's more than what you asked for.. People calling you makes things a lot easier, but it's in no way in the bag.
- 4,138
T65Inbound.com. You can run a quote there. It takes some time to ramp up.. If you're looking at a total of 3000 mailings a month, you wanting the 600 package if you want to do 5 mailings, or 450 if you want to do 7 mailings.
Over time you'll get to 3000 letters per month.
After stuffing, stamping and mailing out 500 letters I realized a mail house service like Lead Concepts will drop 1000 for around the same price! Just send them your letter and your mailing list and they will do the rest!
Buying cheap telemarketing data for a mailing list can end up being very costly!
All the unlimited "pay monthly" data list brokers only update their data once or twice a year.
Spending the money on a highly quality list with the multiple mailings option applied is the cheaper option in the long run!
The USA Data deal through Mutual Omaha has a 94% deliverability guarantee.
https://mutualidn.usadata.com/
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