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Member You - Break Even On Your Next Direct Mail Campaign...And Still Generate Huge Profits
We are all leaders; in our families, churches, temples, lodges, clubs, businesses and fraternal organizations.Have you ever heard of a Cult Manager? Yet where have we ever seen more loyalty, commitment and blind obedience? No such thing as a Religious Manager. There’s a huge difference between management and leadership. “Semantics”, you say. When I went to Hotel School I was taught how to be a Hotel Manager. I found that I had to become a Leader in order to gain the loyalty and commitment of my staff.When I first arrived to work as a manager in a hotel in Rhodesia, now Zimbabwe, the staff did the usual hotel staff things to test me. The cashier would mix up the cash register, and see if I could sort out the problem. The night chefs would stay home, and see i
Now after Joe "breaks even" a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and g
You’d like to become self-employed, but would like even better the chance to enter the marketplace with a product or service which has and established track record. You, in other words, have a franchise idea, and need to take the next step.But taking on a franchise demands a lot from you; you’ll need to have the financial wherewithal and business experience to make you good franchisee material. And you’ll need some of the kind of franchise idea for which you’d be a good fit.Some franchise ideas make millions, and some franchise ideas make paupers. The great majority of the time, a franchise’s performance is directly tied to its proprietor’s dedication and skills in overcoming obstacles.You will be able to choose from among the three types of franch
Joe’s Civil War Shop
Joe owns a Civil War souvenir shop. Yes, believe it or not there is a rather large market of Civil War nuts who collect anything from old bullets, to swords, to manuscripts written by confederate generals. Joe’s sales have been slowing since he is located in Virginia, the capital of Civil War memorabilia because this market has saturated itself from having close local stores to buy collections from.
So, Joe decides he wants to sell nationwide through direct mail. He goes out and gets the best Civil War nut list he can find (no offence Civil War lovers...), hires the best copywriter he can afford and sets out on a little campaign of his own…a direct mail campaign.
His sales letter sizzles. Orders come in at a respectable rate, but after he tallies the results he discovers the cost of the mailing just about breaks even with the orders that came in.
My question to you is this:
Should Joe abandon this project or continue?
This is a big decision he has to make. What would you do?
Continue If Your Existing Customers Will Buy More From You
The correct answer is really very simple if you understand the lifetime value that each customer on average brings you.
Let's say, on average, Joe's customers pay around $65 for each order they make. But Joe knows Civil War nuts normally can't stop at just one item. Once Joe establishes a strong trust with his customers by shipping promptly, providing products that match expectations and satisfies the desires of his customers, then on average those customers are likely to buy 2, 3 or more times per year from Joe. So lets say on average a customer buys 3 times a year from Joe. This comes to about $200 a year.
Now after Joe "breaks even" a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and ga
There are a number of things to consider when starting a business. An important thing to do is to choose the appropriate legal structure and register the business name. Choosing a business name is a very important step in the process. In selecting a name for your business you should use caution so that you are not infringing on names filed by other businesses or being used by another entity as a trademark, service mark or trade name. Protection of a business name is established by registering the name in each county in which the business is being conducted.There are two types of registrations at the county level:An Assumed Name consists of one or more parties. It is more binding since all parties listed must sign the documents in front of a n
So, Joe decides he wants to sell nationwide through direct mail. He goes out and gets the best Civil War nut list he can find (no offence Civil War lovers...), hires the best copywriter he can afford and sets out on a little campaign of his own…a direct mail campaign.
His sales letter sizzles. Orders come in at a respectable rate, but after he tallies the results he discovers the cost of the mailing just about breaks even with the orders that came in.
My question to you is this:
Should Joe abandon this project or continue?
This is a big decision he has to make. What would you do?
Continue If Your Existing Customers Will Buy More From You
The correct answer is really very simple if you understand the lifetime value that each customer on average brings you.
Let's say, on average, Joe's customers pay around $65 for each order they make. But Joe knows Civil War nuts normally can't stop at just one item. Once Joe establishes a strong trust with his customers by shipping promptly, providing products that match expectations and satisfies the desires of his customers, then on average those customers are likely to buy 2, 3 or more times per year from Joe. So lets say on average a customer buys 3 times a year from Joe. This comes to about $200 a year.
Now after Joe "breaks even" a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and g
Personal marketing makes it easier to sell, by building relationships nurtured on awareness, value and trust. Make your relationships more fruitful by making them personal. Use these powerful yet simple tips from the book, Secrets of Power Marketing; Canada's first guide to personal marketing for non-marketers.Say thank youEveryone wants to hear 'thank you'. The easiest way to say thank you is verbally - but the most powerful and memorable is with a hand written note. We receive so few hand written notes that we read them first and value them because we know you took the time to write it personally. Say thank you to your clients for the opportunity to work with them. Say thank you for considering you - even if they did not hire you. There are so many opportu
His sales letter sizzles. Orders come in at a respectable rate, but after he tallies the results he discovers the cost of the mailing just about breaks even with the orders that came in.
My question to you is this:
Should Joe abandon this project or continue?
This is a big decision he has to make. What would you do?
Continue If Your Existing Customers Will Buy More From You
The correct answer is really very simple if you understand the lifetime value that each customer on average brings you.
Let's say, on average, Joe's customers pay around $65 for each order they make. But Joe knows Civil War nuts normally can't stop at just one item. Once Joe establishes a strong trust with his customers by shipping promptly, providing products that match expectations and satisfies the desires of his customers, then on average those customers are likely to buy 2, 3 or more times per year from Joe. So lets say on average a customer buys 3 times a year from Joe. This comes to about $200 a year.
Now after Joe "breaks even" a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and g
A common complaint bill collectors hear from debtors is that no one cares about us, or our finances or our situation. Just like someone with a negative attitude, many times debtors place the blame on everyone else but themselves, this includes the bill collector that is trying to collect the debt they owe their creditor. The bill collector, even if they are as nice as they can be, is immediately considered the evil enemy, just because they are what they are, a bill collector.Not all bill collectors are evil and break the law but with the stories that have been in the news lately that is the continued perception our media is portraying. I have not seen one story yet that states not all bill collectors are violating federal and state laws, being unethical or helpi
Continue If Your Existing Customers Will Buy More From You
The correct answer is really very simple if you understand the lifetime value that each customer on average brings you.
Let's say, on average, Joe's customers pay around $65 for each order they make. But Joe knows Civil War nuts normally can't stop at just one item. Once Joe establishes a strong trust with his customers by shipping promptly, providing products that match expectations and satisfies the desires of his customers, then on average those customers are likely to buy 2, 3 or more times per year from Joe. So lets say on average a customer buys 3 times a year from Joe. This comes to about $200 a year.
Now after Joe "breaks even" a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and g
1) Create systemsCreate systems for everything you do, especially those things you do on a regular basis.My members and mentees ask me all the time how do I manage to get so much done. There are many reasons, and one of the biggest reasons is creating systems for things you do regularly.Think of it in this way: SYSTEM stand forSaves You Some Time Energy Money2) Have two work modelsThe work model that most people are familiar with is "work once, get paid once." This is the model used when you are meeting one to one with a client in your office.Another work model that has literally changed my life is called the "work once, get paid, paid, paid, paid, paid.............This is most easily done on
Now after Joe "breaks even" a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and gave prompt assistance whenever questions came up.
Now Dig The Gold From Your Loyal Paying Customers
Now, lets go back and see what happens when Joe sends a sales letter to ONLY his core customers that actually bought his products. What do you think his response and order rate will be? His customers already have shown to be hungry for his products. He has more to offer. If he throws in a special offer to his "best customers", his response rates could be 30% or more.
So by "breaking even" Joe has built a strong customer base loyal to him. Now I ask...did Joe really break even? Of course not, he will make more money later on reselling to the customers he captured on the break-even mailings. At this point he would be stupid to stop after the first mailing.
Does Your Customer Base Fit This Profile?
If you want to use direct mail to expand your customer base, keep this in mind and ask yourself:
"What can I afford to spend to bring in customers who will continue to respond and buy my products at a rate that more than justifies the cost of the mailings and brings a worthwhile profit. Each business will have different ways of calculating this…in Joes case I'll step you through it.
Let’s Crunch The Numbers To See How To Profit
We'll use a starting 1000 mailing list as a base. Lets say it costs $800 for the mailing. $200 for copywriting, $100 for the list and $.50 for postage and cost of shipping. The total cost is $800 ($100 + $200 + ($0.50*1000)). Now to break even Joe would need to sell 12 products at $65. $12x$65 is approximately $800. That would be at a 1.2% response rate.
So Joe just broke even...now lets see what happens if Joe sends 3 mailings to those 12 customers at a 30% response rate...
30%
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