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  • #1433

    George Dean
    Participant
    Post count: 76

    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.

    FYI….

    • 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.

    Thoughts??

    George

Viewing 6 replies - 1 through 6 (of 6 total)
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  • Joel S
    Participant
    Post count: 51
    Pro

    So I finally got the program now.

    If you go specifically after tax delinquent properties you should get a much better rate. Correct me if I’m wrong @jilldewit

    Also if you are worried on cost just print up your own letters for the first 100 or so, if you can do it cheaper than the services.

    George Dean
    Participant
    Post count: 76

    Joel,

    I have zero fear of DM. I mail tens of thousands a year in my current business. I like the numbers in this model. 🙂

    George

    Joel S
    Participant
    Post count: 51
    Pro

    Sorry, George. I misunderstood that you were making a statement that you CAN make this work, with the numbers above.

    For some reason I read it as, ‘I would like to know how this is supposed to work with these numbers.’

    I understand now and also like these numbers.

    Chris
    Participant
    Post count: 252
    Pro

    Hi George,

    I was also a big Dan Kennedy fan. I’ve listed to many of his 3-5 day seminars on CD. (Also a big Gary Halbert fan).

    There is a copywriting/DM quote that goes something like – “He who can pay the most to acquire a customer wins.” With the accompanying details of, if a customer is worth $2k – $10k, you can send a heck of a lot of mail! You don’t have to have the worlds best copywriters crafting your message.

    The numbers are definitely above average in this game.

    Chris
    Participant
    Post count: 252
    Pro

    And I forget to ask, what business are you currently in where you’re sending so much DM?

    George Dean
    Participant
    Post count: 76

    I own a portrait studio. GeorgeDean.com

    Yes… Whomever can afford to pay the most to aquire a client will dominate their market !

    Always know the maximum price you’re willing to pay to acquire a customer !

Viewing 6 replies - 1 through 6 (of 6 total)

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