If you’re thinking of adding direct mail to your marketing strategy, make sure you ask the right questions. Don’t start by asking, “what color of ink should I use?” or “should I use glossy paper?”
The 3 most important questions to ask are as follows:
1. What’s the best price point to sell from a direct mail piece?
2. How do you build a list to send to?
3. How much should you spend to acquire the buyer?
In this video, filmed at the Titanium Mastermind in Phuket, Thailand, Craig Simpson gives the answers.
THE BEST PRICE POINT?
When Craig Simpson was selling “Overnight Millionaire,” he was mailing over 10 million pieces a year. The price point was $119.
In his opinion, the maximum price point to sell to a cold prospect from direct mail is $195. Ideally, you want to be selling a product for less than $100.
A $49 application kit, for example, is right on target.
HOW TO BUILD THE LIST?
You can build a list of direct mail leads by running online ads and making a free offer in exchange for their postal address.
This could be a 16 page free report that’s congruent with your current offer. You don’t even need to send the report in the mail. You could deliver the report online and then send the sales letter in the mail.
HOW MUCH TO SPEND?
Assuming your average $49 buyer is worth $1,000 to $1,500 over the customer lifetime, how much would you spend to acquire each one?
When Craig Simpson was mailing 10 million people a year for “Overnight Millionaire,” he was spending $350 to $400 per customer acquisition because he was mailing to a big and broad list.
If he were only mailing to 100,000 a year, his cost per acquisition might go down to $185 because it would be a more targeted list.
Expect that the broader you want to go, the higher you’re going to be spending to acquire each buyer. That’s OK, as long as you have the back end offers to return your investment.
The MOBE Gold Masterclass goes into more depth on this topic. It will show you how to find customers, sell to them and build a consistently profitable business using a Customer Acquisition Process. To learn more about the Gold Masterclass, click HERE.