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Direct Mail Is Not For The Faint Of Heart (Nor Weak Budgeted) Network Marketer.

Guest post by: Andy Acciaioli

Article Overview: : Direct mail cannot be done cost effectively by the average network marketer. With costs approaching .60 per recipient (when you factor in mailing list rental, label production, printing and postage), and the average consumer receiving over 3,000 advertising messages per day, is it any wonder why direct mail response rates are so low?

Direct Mail Is Not For The Faint Of Heart (Nor Weak Budgeted) Network Marketer.

I am a believer in direct mail. In the past I have built two conventional businesses using direct mail as a vital component of my marketing mix. My first major foray into this medium was with a tour and travel business that I founded and operated for 18 years. Our mailers exceeded a million pieces annually.

Over the past 16 years, I started and ran a business-to-business direct mail company having local, niche market direct mailers in major Northeast, Central and Western states.

Why I tell you this is to give you an understanding that when it comes to this form of advertising, I have extensive experience in the field. And the conclusion I have come to realize is that it is extremely expensive compared to the return. Usually beyond the reach of the average network marketer.

Let's examine the costs involved.

First, you will need to rent a business opportunity seekers list. I have seen online rates around .10 for each name (usually there is a minimum order or be prepared to pay a surcharge). If you want the names and addresses on labels that could run you an additional 5 or 6 cents more.

Second, you have quite a variety of options when it comes to printing. Here is an area where most people will skimp forgetting the fact that this is the MOST important decision you will make. If you go with a schlock stock and print job, what kind of impression will you give your direct mail recipient? Assuming you send a 6" x 4" postcard with black ink plus a second color (forget the 4 color process) your cost could be anywhere from .15 - .25 per piece depending upon how many mailers you order.

Third, and this is the biggie, is postage. Currently postcard postage is .28 per stamp.

At roughly .60 per direct mail recipient (using the lower printing cost), it would not be bad if the returns were in the range of when I first started mailing over 30 years ago: 3% - 4%. But the reality is in today's advertising climate, the typical consumer is being bombarded with over 3,000 promotional messages daily and a mailer is lucky to receive a ¼ to ½ of 1% response. (Response = acknowledgement of receiving your message and not necessarily making a "purchase" / joining your business.)

A couple of techniques which will better your response rates:

1. Plan on increasing the frequency of your mailings to the SAME people (mailing list) at least on an average of 3 or 4 times. This way, they get to know you as you incrementally build a relationship with each mailing. (The problem with this is that it is extremely costly.)

2. Only mail out 10 or 15 pieces a day and make follow-up telephone calls to those who have received the pieces. It is vital that you make these calls within 24 hours of their receiving the pieces. This is a perfect conversation starter: "Hi, this is ___________. I'm the one who sent you the home business mailer with the homemaker at the computer. Do you recall getting it?" Go for it, the conversation is now opened.

Recently I co-ordinated a co-op direct mail program within our network marketing team. Each of us mailed out 500 pieces. The response ranged from none to awful. Of my two "star prospects", one wanted to sell me the product we offer so I could resell it for him and the other is a tire kicker at best. Sending these few mailers out (500 per co-op participant) was being extremely cost conscious as I kept the total cost for the mailing list on pressure sensitive labels, the 2-color printing on heavy, glossy stock and shipping to $98.50 per person.

The next time I develop a direct mail program for my primary network marketing business, I will personally test it out with 5,000 pieces. Based on the results, it will then be offered to my team.

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Article Tags: home based business direct mail, mlm direct mail, multi level marketing direct mail, network marketing direct mail



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