I like to know I can make money at .0025 response rate with direct mail.
So……..Starting at G19, I believe you should SUBTRACT D19 (the cost of the outsourced mailing). So.. for G19, I now have =$F$18*F19-D19
You’ve got to back out the mailing expenditure. That is a real expense.
- At quarter of one percent (.0025) response rate, the direct mail cost per deal is $247
- At half of one percent (.0050) response rate, the direct mail cost per deal is $123
- At 1% (.01) response rate, the direct mail cost per deal is $61.
I attended a 5 day direct mail boot camp a few years ago by Dan Kennedy. At that conference, he said “You better make the math work at 1/4 of 1%.”
So…. I like to know I can make money at a .0025 response rate.
SO…. at 1/4 of 1% (.0025) response rate and a small $500 margin, you still profit $316! You made DOUBLE your outsourced mailing expenditure of $309. Not to bad.
SO, to make MORE money, we need to do better than .0025% and/or make more than $500 per deal. Sounds like that SHOULD be pretty easy!
Just some thoughts as I am going through the training.
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