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Profiting from direct mail.

Okay so now you should understand the concepts behind direct mail

and how it can be done profitably, every time.

Not only do you now know how to run your own successful direct

mail campaigns but you now have the ability to offer them to others,

which is where some very big profits lie. You literally are now able to

generate business on a whim for almost any industry you can imagine.

If you can think of a specialized list, you can think of businesses that

would want to market to it.

If you’re ever in the position where a business owner needs to generate

profit, this is the answer for them. The only other way to generate

business rapidly would be to implement a PPC campaign, but that is

still only limited to the people locally searching for their services.

No Limitations

Direct mail isn’t limited to people already looking. Targeted mail

seeks out the people who are already most likely interested, then gets

right in their hands at a moments notice, without fail. It generates any

amount of business you wish.

If you or your client need to make X amount, direct mail is the only

method to predictably bring it in on command. You just need to figure

out a good offer and the correct amount to mail. That’s it. Nothing else

touches this kind of automated power.

The interest is all in the list, not the service.

I can tell you from experience, business owners will be more interested

in hearing that you have a specialized list that you can market to,

rather than the fact that you offer direct mail services. The baby

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store earlier was a good example. Imagine if you were the owner of a

children’s store, which sales pitch would sound more attractive to you?

Sales Pitch #1:

Hi, my name is Bob Ross and I specialize in offering direct mail services.

I can send mail to targeted prospects for you which can generate a lot of

business and customers.
I can handle everything and we can lookup a list of the type of people that

typically frequent your business.

Would you like to send mail to targeted prospects consistently?

Sales Pitch #2:

Hi, my name is Bob Ross and I maintain a list of every new parent in our

area, which is updated weekly. I can inexpensively send postcards in the

mail to every single one of them with coupons or a special offer on it.

We all know how new parents look forward to coupons for baby products in

the mail. I also maintain a list of local families that make over $75,000 per

year and have children younger than five.

Would you like to consistently get your products in front of all the brand new

parents in our area?

Hopefully you said pitch #2.

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The reason that the second pitch is so much more effective (from

the business owners point of view) is because it revolves around the

exclusive list, not the service itself.

If I didn’t explain this to you, I think you’re natural reaction would be

to start pitching people on the fact that you can handle direct mail,

which isn’t that impressive to them. Remember, a lot of business

owners are uncomfortable with direct mail.

The list is what will interest them and you must be very clear about

what type of list you have. That’s the big selling point, not just the

fact that you can do direct mail for them. I want to pound this in your

head, it’s all about the LIST.

Here’s an example of how you can craft your sales letters if you want

to send them to businesses (which I HIGHLY recommend).

Keep in mind that you don’t ever want to give too much information

out, just the big benefits.

SEE NEXT PAGE FOR

SALES LETTER COPY

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Sample Sales Letter:

Hi, my name is Bob Ross. I currently maintain weekly updated lists of

every parent who has a newborn within a 20 mile radius.

Did you know that brand new parents are more than twice as likely to

spend money on children’s toys, clothes, and furniture? Wouldn’t they love to

get a coupon or special offer from your shop in the mail?

I also have access to a list of local families that make over $75,000 per year

and have children below five years old.

A well designed postcard with a special offer on it can have very high

response and will bring in exactly the type of new customers you want. It

will not be a problem getting dozens and dozens of new paying customers

coming in to your store.

I handle everything from designing the piece to printing and mailing

them out, and there’s absolutely no doubt that you’re business will grow

dramatically.

If you’d like to inexpensively get your business name and offers directly in

front our local new parents and higher income families with children, give

me a call for the details.

You would need to modify the wording to fit the business you’re

pitching, but this is how they should be crafted in general.

Again...

The list will pique their interest MUCH more than the services itself.

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5 step process for securing new clients.

1. Pick an industry you want to promote your lists to and compile a list of the

owners names and business addresses.

2. Determine what type of customer profiles or hot lists they would want to get

their offers in front of.

3. Craft a sales letter like the one exampled above and mail them to as many

businesses as you can afford, consistently. Even if you only send 10 out per
week, mail them consistently and you’ll see clients contacting you frequently.

4. Go over the details with the client and show them how affordable, easy, and

effective it is for them to get their offers right in front of the ones who need
them the most.

5. Work out the mailing sizes they are comfortable with, their budget, and their

expectations. Close the deal.

When you mail your sales letter, use a plain white envelope, do not put

a return address, hand write the address, and put a stamp on slightly

crooked. This will guarantee you a 100% open rate.

OTHER PROSPECTING OPTIONS.

Cold Calling

Cold calling is super effective but I know how so many of you hate

it so I’m not going to stress it much. You can still bring in clients via

sales letters so don’t worry if you’re afraid of the phone.

I would however strongly suggest cold calling as a follow up to the

letter if you’re comfortable with it. If not, no worries, just send out

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more letters!

If you’re using infofree, you can obviously pull lists with phone

numbers to cold call very easily. Otherwise, just look up numbers via

manta, phone book, or any other resource you’ve been getting your

prospect info from.

If you’re cold calling without an initial letter, a clearly direct pitch will

work fine to get them interested...

Cold Call Pitch:

Ask for the person in charge of the marketing (or ask for the owner).

Then say:

“Hi, My name is Bob and I own a local promotional business. I currently

maintain a list of local people that I know would benefit from your services.

Would you be interested in getting your offers directly to them?

If they ask for more details, you respond:

Well, I narrow the list to your most common customer profile, then we

simply send inexpensive postcards frequently to them containing a special

offer or two on it. You’ll see results RIGHT AWAY and you’ll continue to

bring in new customers so long as we keep sending them offers that they find

attractive.

Email Prospecting

You can certainly prospect by email (infofree allows you to view and

print email addresses but you can’t download them due to CAN-

SPAM).

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Your email letter should follow the same structure as the sales letter.

Do not expect as high of a response from emailing as the other

methods but it’s still perfectly viable. Email is free too, so you can

afford to send more of them.

Test out your pitch

If you’d like to just test your prospecting methods before you start

marketing to your local community, don’t forget you can prospect

anywhere in the nation. Create a google voice number and call from

your computer for free.

Just call up businesses that you want to target in any random area you

wish, to gauge response. You can sell targeted campaigns to anyone

regardless of how far away they’re located because you don’t have to

handle any of the logistics! Sometimes people feel more comfortable

calling places outside your local area just to get the hang of it. That

way you don’t feel like you’re burning up local leads.

The system is flexible and you’ll NEVER run out of prospects to call,

mail, or email, so just have at it any way you like.

Pricing

Pricing your campaigns are where you decide how much you’re going

to make. Notice I said YOU decide. You don’t have to follow a strict

price, you can make any profit you want. All you have to do is sell it

for more than what it costs you to run the campaign.

The easiest way to deal with pricing is to separate it in different

elements. This is also going to actually make it much more easy

to present to your clients as well. The price you pay to send the

campaigns will only be around 40 to 50 cents per piece including

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printing/sorting/addressing/storage/postage/mailing and postage!.

Your lists costs are basically free and the design can be handled via

postcardmania for $99-$199, or you can use a fellow warrior who

charges $50 and is a professional designer and layout artist. His name

is Gregg and his email is

[e-mail]

(check out his portfolio!).

Your mailing services can be handled by either postcardmania.com

(remember to email Erica at

[e-mail]

for samples and

the free postcard marketing manual.) Or fellow warrior “Doran Peck”

(

[e-mail]

) who can do very small mailings as well as high

volume ones as well.

Keep in mind, you want to mark all of your services up or rearrange

them so that they’re covered. You won’t EVER have to put any money

of your own on the campaigns you’re offering. They need to pay you

for everything prior to printing. This will not be a problem when

sending solo mail campaigns.

The typical piece rate that most businesses will easily pay is around

70 cents. I’ve seen a few small saturation campaigns that yellow pages

had convinced some of my clients to do in the past which cost $1 per

postcard!

Seventy cents per piece is totally fair to charge, which means that

you end up profiting around 30 cents on each piece. A 5,000 piece

campaign should net you around $1,500.

Just like drug dealers can move people up to higher power drugs once

they’re hooked, you’ll be able to continue to sell your clients on larger

campaigns. Once people realize the power of postcard direct mail,

they’ll want to do more and more.

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It’s EXTREMELY common for small businesses to start out with

small campaigns like 1,000 pieces per month, then move up to 5,000,

then 10,000 etc... Because it just keeps making them more and more

money every time they send them.

It becomes literally an open ATM once they realize what happens

each time you mail for them.

Big Profits with just a few campaigns

If you keep sending sales letters to businesses and keep bringing in

clients, you’ll be reaching 10 or more clients running campaigns with

you monthly in no time. That’s some major income flowing your way

and remember, it doesn’t require barely any work to do and they won’t

be calling you for tech support issues!

You can run everything from your couch in your pajamas. All you are

doing is licking a few stamps and clicking a few buttons. You can keep

offering direct mail services all you want.

You’ll never be overwhelmed since you have the perfect outsourcing

resources to handle everything.

The benefit of bringing in business

You’re also now in the position to offer any other services you want

once you’ve brought them results in via direct mail. They now trust and

look up to you. As you continue to offer them services to help grow

their business, and keep mailing to bring in more and more business,

they become completely and utterly dependent on you. The best

position to be in.

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How to quote pricing to your clients

Even though it’s easy for you to gauge your profit by reducing it all to

per-piece mailing, it’s not actually the best way to quote your prospects

or clients.

The reason why is that if you group everything together into one, they

will base the whole cost on just each postcard, which may seem too

high at first glance. Use the per-piece metric only for yourself to gauge

your profits quickly.

You’ll need to break your prices quotes down into certain elements

that are easily understood.

Pricing & Strategy Example.

Let’s say you are going to quote a campaign for a local Audiologist

(hearing-aid business). Audiologists are great targets for us because

their target market is senior citizens, who respond extremely well to

direct mail.

You strategize with your client and they tell you that one third of

all people over 65 suffer from hearing loss. All he needs to do is get

people to come into his business so that he can examine them and

show them how much better their hearing can be with inconspicuous

modern hearing aids.

A typical custom hearing aid set will run anywhere from $2,500 to

$5,000 and up. Insurance doesn’t pay for convenient hearing aids so he

needs people who can afford them out of pocket or on a credit line.

You pull up a list of people in the local zip codes that are 60 and

older. There’s 25,000 of them. Next you may want to ask him whether

females or males are more commonly buying hearing aids? He says

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males, so you narrow the list to males, which cut it to 11,500.

Now we narrow it further by whether or not they are typically married.

He says that most of them are married. This brings the list to 8,000.

Since the devices are expensive, you narrow the list down to 5,000 by

selecting only $25,000 incomes and up.

Now you have 5,000 of his prime prospects in a list. Since you need to

do at least three or four mailings to maximize response, you’ll want to

mail a minimum of 1,000 of them repeatedly over five periods. (This

could be monthly or even every three weeks).

You email Erica at [e-mail] and she gives you

case studies and results of previous hearing aid campaigns they’ve

done. She says that the best response has been with offers such as

“FREE battery replacement” and “FREE hearing exam”. She also has

over ten design templates that he can use which are currently proven

to work across the nation.

Total quote for the mailing on your end is $99 for the design, $1,250

in postage, $329 in printing, and $250 in addressing/mailing.

Total is only

$1,928. (38 cents each), so anything you sell more

than that is PURE PROFIT. As I mentioned before, charging 70

cents per piece to the business is a perfectly fair deal.

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You can quote the client EASILY something like

this...

Design and copywriting

$289

Customer profile list research and development: $887

Married Men over 65 years old in

zip codes 83281 and 83282,

income over $30,000 per year:

5,000 Glossy postcards, full color printed $1125

UV Coated high gloss on front
Addressing/sorting/mail prep $431
Storage over five months

$39

Postage and handling:

$1,300

FIRST TIME MAILING DISCOUNT: $500 OFF

total cost for printing/addressing/storage/mail prep $2271

only 45 cents each

total cost monthly for postage and handling $260

only 26 cents each

Projected response: 2.5% (125 responses overall).

If 10% convert = 12 sales @ $3,500 each = $42,000 revenue.

So all in all the audiologist only pays $2271 up front and $260 per

month in postage each mailing, but he ends up with at least $42,000

in revenue!

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Your profit

You profit over $1,600 and he gets hundreds of new people coming

through the door and tens of thousands in sales.

You keep mailing continuously, increasing the people you mail to in

order to generate more and more responses. You just keep collecting

checks from your client on autopilot. Meanwhile, you can sell them

SEO, PPC, etc...

Once you run the response estimates with your prospects, they’ll see

how profitable it can be to run these types of campaigns. That’s why

I like dealing with businesses that have high sale prices and high lead

costs. When you mail to a list of laser targeted prospects, the response

can be dramatically more than they’ve ever experienced in advertising.

As you increase the mailing size, just broaden your targeting criteria or

expand into new territory. Continue mailing to the same lists so long

as response keeps coming. You can ALWAYS keep mailing. Never ever

stop because it will quit working if you keep on doing it, I promise.

Flexibility

You don’t have to use the pricing I used as an example, charge

anything you’d like. The system is completely flexible to whatever

markup you choose. You are in control.

All I can tell you is that you’re offering the very best service these

businesses can ever get and you should be fairly paid for it. If they’re

going to make tens of thousands each time you mail, you deserve to

make a puny few thousand, right?

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How to casually quote the cost while in

conversation

When you initially communicate with prospects that are interested in

marketing to your lists, you want to give them an idea of the cost but

you need it to sound easily affordable.

It’s best to say something like this...

“Well, printing high quality full color glossy postcards run about 40

cents each. Researching and targeting the exact local people you’re

looking for costs about 15 cents each. A professionally completed

design is about $300. Postage as you know is almost fifty cents This

brings everything to around $1.50 for each piece to be mailed.”

Now you’ve justified to them the high cost of direct mail. You’re in a

great position at this point to make a very attractive pitch for what

you can do.

“Because I take care of everything myself and don’t have salespeople

or high overhead, I can cut down the cost of everything by more than

HALF.”

“The average ROI of targeted direct mail is over $12 for every $1

spent”. You’re missing out on tremendous business if you’re not

marketing directly to all the people locally who want your services”.

Making it simple to understand

You don’t want to overcomplicate anything when you’re talking about

direct mail to your clients and prospects. This is the same issue that

people who sell PPC and SEO deal with. They aren’t really interested

in the technical details so much.

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You want to stress that you:

• have names and addresses of exactly the type of people that are

likely to want their products and services.

• can get their business name and special offers directly into their

hands with a proven method that brings in results every time when
one properly.

Objections

Sometimes you’ll come across objections but they’re more like

“concerns”. You’ll prevent most objections if you can handle them

before the ever come up.

The main objections that you’ll get are “It’s not affordable or “costs too

much” and “direct mail doesn’t work”.

First of all, to overcome affordability issues, just simply target

businesses that can afford it. Again, this is why it’s best to target

businesses that have high ticket services or products and high lead

costs. These people spend thousands on good advertising without

batting an eye.

If you’re running into businesses that are saying they can’t afford it,

you’re simply targeting the wrong businesses so you should go find

where the money is.

The low advertising budget businesses are better off with my

9x12 system.

The smaller mom ‘n pop places are MUCH better suited to the

9x12 program in my last WSO (which by the way is actually more

profitable in the end but requires a slightly more difficult startup

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process).

If you’re interested in learning more about that system, you can go to

the warrior forum mega-thread on the offline forum on it here or in

my past WSO.

“Direct mail doesn’t work”

This is a fairly common objection and it’s really more of a concern. The

reason that people say this is almost always directly due to the “low”

response rates.

You’re bound to hear people say

“No one looks at this kind of mail, 90% of it gets thrown out”.

Just think about that statement for a second. Flip it around and you

get “10% of people keeping it”.

You can reply to their statement with, “I wish that only ninety percent

threw it out!” Me and you would be billionaires if that were true. The

truth is, only a very few percent will look at it and do something about

it.”

You want to put in perspective that very low response rates are actually

super profitable. If you send out 1,000 pieces of mail directly to the

most common buyers of your service, even a 2% response will get you

twenty new paying clients!

A billboard on a highway gets “seen” by tens if not hundreds of thousands of

people every day. What percentage of those people respond to it?

A newspaper ad gets seen by tens of thousands if not hundreds of thousands

per day, how many respond to that each time you run one?

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You want to make them realize that direct mail is different than ANY

other form of advertising. A super “low” response rate is actually

tremendously much higher than any other form of advertising. A great

instant reply is:

“You’re not interested in the thousands of people who will throw your

postcard out. You’re interested in the couple hundred that end up responding

to it and becoming new clients!”

I mean really, if you’re going to knock direct mail for its low response

rates then you might as well knock every other advertising medium

out there because I’d love to see a billboard pull even a thousandth of a

percent response, seriously!

Taking over direct mail campaigns

When you’re targeting medium to larger size companies, you’ll

often run into businesses that currently do direct mail. This is a great

opportunity for you actually because you’re able to do everything

cheaper. You don’t have the overhead like the company they probably

are using.

When someone tells you they already do campaigns, ask them how it

works out for them and whether they’re interested in getting the same

thing done significantly lower. You’re ALWAYS going to get interest

here because they know how expensive direct mail is, so someone who

says they can do it cheaper is definitely a big thing.

Like I said before, most places charge around 70 or more cents each to

mail, depending on the mail piece. You can just take over their current

campaigns, undercut their current provider and STILL make a big

profit. It’s not like you have to do much work other than email and

click buttons. I love it!