Direct Mail

VIC · 11-22-2006, 04:30 PM

What does everyone think the best meathod of direct mail is? Postcards or envelopes?

*STIBROKER@AUSTIN.RR.COM* · 11-22-2006, 05:39 PM

1 TO 2 %..............

James · 11-23-2006, 03:02 AM

Don't know, what are you peddling?

healthagent · 11-24-2006, 01:04 PM

Envelopes are going to be expensive since most online services that do mailers aren't set up for envelopes.

And 1% to 2% is a wet dream. You're at .05% if you're lucky. I've personally witnessed over 1,000 mailers go out with zero return.

Here's why I don't do them for health:

1,000 X 40 cents a piece: $400
.05% return = 5 leads
Cost per lead = $80 per lead

And out of those 5 leads you may have from zero to one deal.

dvd493 · 11-24-2006, 01:44 PM

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.

James · 11-24-2006, 02:08 PM

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!

dvd493 · 11-24-2006, 05:38 PM

James,

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.

healthagent · 11-25-2006, 11:41 AM

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.

dvd493 · 11-25-2006, 12:09 PM

John,

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.

healthagent · 11-25-2006, 03:15 PM

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.

James · 11-26-2006, 11:03 PM

Quote:

Originally Posted by dvd493

James,

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?

healthagent · 11-26-2006, 11:33 PM

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.

James · 11-27-2006, 08:25 AM

Quote:

Originally Posted by john_petrowski

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.

*STIBROKER@AUSTIN.RR.COM* · 11-27-2006, 09:24 AM

Quote:

Originally Posted by dvd493

The reason I sent out so many is because of Thanksgiving and Christmas season.

And why did you do this....so your mailer will get lost in all the holiday mailers...

healthagent · 11-27-2006, 09:34 AM

And the last thing anyone wants to do before Christmas is spend money on insurance. Not saying I won't do well before Christmas, but I cold call.

dvd493 · 11-27-2006, 10:53 AM

Quote:

Originally Posted by James

Quote:

Originally Posted by john_petrowski

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.

James · 11-27-2006, 09:40 PM

Quote:

Originally Posted by dvd493

Quote:

Originally Posted by James

Quote:

Originally Posted by john_petrowski

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!

healthagent · 11-28-2006, 02:36 PM

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.