I like the envelopes because you can put more on the letter than you can on a card. When you get the return, it is more informative for you before you make the call to set an appointment.
That being said, I just sent out 10,000 letters on my own. This may have been a very expensive mistake since they went out a week ago and I have not recieved a single response yet. I have my fingers crossed and hope to at least make my money back.
Several of my freinds in this business used to get 1.5-3% returns on these letters but have been only seeing .5 or less for the last 3-4 months.
So far its looking like even a .25% response would make me happy. I could at least make my money back then.
If a mailing is going to work or not shouldn't be guess work! Did you test it first with say a run of a couple of hundred? I still maintain and have had good success doing neighborhoods, as in personalizing the mailer. And a whole lot less expensive! Yet you do have to call after you do 1 or 2 mailings and if you do ten thousand there really isn't a good way of doing that, at least for me.
Mulitple hits, such as several mailings, flyer insert in paper, calls (such as a person that actually lives in the neighborhood, that gonna cost about ten dollars an apt.) a personal call from yourself, and anything else you can dream up. Such as a local event too label a envelope with. In other words you need to have a plan that you can mail out consitently over the course of the year, year in and year out. One mailing I fear is nothing more then asking for failure. Yet I hope you success and achieve a 3% return, did you use a Mail Replier within your letter? A telephone and website is a good thing but the Mail Replier will really help!
I did send it out with a self addressed, stamped envelope included. The reason I sent out so many is because of Thanksgiving and Christmas season. I figured from the get go it would be a small return. Still .5% of 10,000 is 50 people. It won't take many sales to make my money back if that is what it produces but, so far nothing. I'll know for sure in another week or two if it was worth it or not.
10,000 mailers X 40 cents = $4,000
.05% return = 50 leads
$800 commission per deal X 5 deals = $4,000
Profit = $0
Story: We had a cable company called Millenium - were always happy with their service. Comcast pounded us with direct mail, which ended up in the circular file as my wife sorted through the mail. Must have trashed about 10 postcard ads.
Months later a knock at the door. It was a Comcast rep. Told us we could not only save $20 a month but also get a DVR - which Millenium didn't offer at the time. Signed up on the spot.
Another story: Had Comcast for a while and saw the ads on TV for their new phone service - also got pounded with ads. We were happy with Verizon and stayed. Got a phone call one night from Comcast and gave me the whole nine yards on their phone service - switched that night and glad I did. Much better than Verizon.
In MP my experience as well as some others is that 33% of the leads that come back will lead to a sale. Your correct on the 800.00 per sale commision so it should look as follows.
50 leads x 33% = 16 sales
16 sales x 800.00 = 12,800
Minus 4,000 for mailer = 8,800 profit
However, right now I'd be happy just to get my money back out of this deal and hopefully have a couple of extra sales on top.
When I was new in the industry everyone used to spit out stats about postcard mailers. All I know if everytime I sent them out I got my ass handed to me.
I did send it out with a self addressed, stamped envelope included. The reason I sent out so many is because of Thanksgiving and Christmas season. I figured from the get go it would be a small return. Still .5% of 10,000 is 50 people. It won't take many sales to make my money back if that is what it produces but, so far nothing. I'll know for sure in another week or two if it was worth it or not.
You enclosed a stamped return envelope? Are you saying you put a stamp on the envelopes for them to return? If so how did you get the cost to come in at 4 grand? That is if we are talking two stamps or 20 thousand stamps not 10 thousand stamps?
Good catch - I missed that. You sent out 10,000 letters with a return stamp? That's 80 cents per mailing or $8,000. So you definitely will not break even.
Good catch - I missed that. You sent out 10,000 letters with a return stamp? That's 80 cents per mailing or $8,000. So you definitely will not break even.
Good catch - I missed that. You sent out 10,000 letters with a return stamp? That's 80 cents per mailing or $8,000. So you definitely will not break even.
I hope he meant a replier done as a envelope.
What I meant is one of those return envelopes that is pre printed with a stamp already on it that is given to you by the post office. I only have to pay for that stamp if it is returned to my post office box. I hope that explains it. It is my first run so I don't have all the technical language for it. How I got all 10,000 out for 4,000 is I used a professional mail service. They get discounts we can't get. You can find them in the yellow pages.
Good catch - I missed that. You sent out 10,000 letters with a return stamp? That's 80 cents per mailing or $8,000. So you definitely will not break even.
I hope he meant a replier done as a envelope.
What I meant is one of those return envelopes that is pre printed with a stamp already on it that is given to you by the post office. I only have to pay for that stamp if it is returned to my post office box. I hope that explains it. It is my first run so I don't have all the technical language for it. How I got all 10,000 out for 4,000 is I used a professional mail service. They get discounts we can't get. You can find them in the yellow pages.
They call that a Mail Replier, I'm glad I was wondering when you said stamped envelope! Wow that would be an expensive way to go!
I really wish that direct mail was effective enough to make decent profit. I'd like nothing better than to simply mail out a few thousand pieces per week and just write business. I just haven't see it work out that way. The last time I sent them out I did 2,000 at 40 cents a pop. $800 in marketing money and I didn't write a single deal. I got about 5 calls and it was all junk.
I just got back from the post office and had 12 return envelopes inside. Four of them are bogus but the other eight can be called. I have one who is very old and a couple who are very overweight so it will be interesting to see how this all plays out. I'll be calling them all over the next 24 hours to set appointments. Wish me luck!
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