Using Direct Marketing to Advertise a Business

Direct marketing advertising enjoys great popularity amongst many business owners around the world. In fact, it remains to be a preferred method of advertising despite the emergence of other new marketing strategies. If you are a business owner, considering this marketing technique, this article was written with you in mind.

Take a look at the following tips on you can use direct marketing advertising to generate positive action from prospective customers.

Understand your market. Defining your target market is just the first step. To be effective in your direct mail marketing campaigns, you need to get to know your niche more closely. Essential demographics such as their age bracket, range of income, profession, status, preferences, and other details can play a big role in putting together your marketing plan. Although conducting market research may require time and money, it is a very important aspect to achieve success in your direct marketing campaigns.

Understand your own business. How well do you know your own company? More importantly, how well do you know your products and services? Can you confidently say that your customers will be 100% satisfied with the products or services you offer?

How do you want your market to perceive your brand name? What kind of image would you like to build in the market? Do you have strengths that can make you rise above your competitors?

The above questions can help you understand your own business. Getting your prospects’ attention can be a difficult task. You need to pick a niche and focus on your chosen market. In preparing your direct mail marketing campaign, see to it that you will be able to deliver your promises. Keep in mind that failing to meet your customers’ expectations can badly affect your company’s image for a long time.

Get your message across. Direct marketing advertising is considered to be the most effective method of reaching out to your target market. Why is this? Because you are actually launching a message to a targeted niche. Each marketing mail is sent to one specific recipient.

By conceptualizing a clear and strong message, you are helping prospective customers to remember your brand and understand the benefits of what you offer. Here again, we cannot overemphasize how important it is to spend time conducting market research.

Furthermore, perfecting a marketing copy that will encourage positive customer response is important. To come up with an effective message, consider who your recipients are and choose words that call to positive action.

In order to make your direct advertising more successful, you need to master the art of persuasion. You must always conduct follow ups with your leads. This means repeating your mail marketing campaign to the same group of market on a regular basis, between intervals. For instance, after a month or a few weeks, prepare to send a new batch of marketing mails to the same market. Lastly, always make sure that you track the results of your campaigns so you can make the necessary adjustments or changes quickly.

Copyright (c) 2010 Luie De Von.

What Is Network Marketing Really?

Network Marketing is a marketing strategy it is a simple strategy based on referral or relationship marketing.

Other forms of marketing are Franchising, Affiliate Marketing, Direct Selling online Marketing and Traditional Retail all of these marketing strategies rewards participants in some way.

Perhaps an over simplistic explanation of Network Marketing is that is based on an agreement you have with a particular company to become an independent distributor who sells or distributes that companies goods and in return the company pays you a commission for the sales you generate.

Plus in Network Marketing your company will pay you a commission on sales generated by other people that you refer to the company, who become part of your team and like you, decide to become an independent distributor of that same company.

So let’s take a look at Network Marketing from a Network Marketers point of view.

Successful Network Marketers will tell you hands down, that Network Marketing provides the best income and lifestyle opportunity compared to anything else in the Market place. It is personally and financially rewarding, your income is virtually uncapped, there are no age barriers, other than to be over 18, there is also no specific tertiary educational requirements and in many cases no geographic boundaries, where ever a company operates you can build your business.

So how does it actually work?

Firstly you must agree to become an Independent distributor of a company. In most cases you will hear about a company from a friend, family member, work colleague or via some form of advertising either on or off line.

The process of joining a company while it may vary a little from one company to another, is essentially a matter of a person nominating or sponsoring you to become a distributor then you pay a nominal joining fee and place an order for products for your personal consumption and you agree to the policies and procedures of distribution for the specific company you have joined, and as is the case with most companies these days you place a monthly auto ship order that comes to you on a set date each month.

Once you have completed your application the person who sponsored you into your business will now work with you or will introduce you to the person and system that will teach you to do everything that you need to do to be successful.

Is there a magic formula that will guarantee your success?

Like all things in life of course there is a success formula it requires mastering the skills you need to master to be the success you see yourself as being. There are thousands of books CD’s DVD’s Blog’s web pages and programmes that will provide you with an exact blue print of how to be successful, but here is the word of warning, it requires hard work, commitment and persistence. Whilst in Network Marketing you are in business for yourself you are not in business by yourself. The person who sponsored you into the business wants to see you succeed because the more successful you are the more potential they have to be successful.

So what do most unsuccessful Network Marketers say about Network Marketing?

It doesn’t work I tried it and it didn’t work for me it cost me a lot of money and I got nothing out of it! I didn’t get rich like they told me I would, I went to the meetings I told my family and friends about it and they didn’t join! So I quit.

Unfortunately the talk of high income levels and luxurious and relaxing lifestyles often lure people to Network Marketing, the sad thing about that is that so many people who join the industry as a result of hearing only the reward side of the business do so to get the rewards not to become a successful Network Marketer. So when they have been in the business for a few months and they are not earning a heap of money they quit!

Network Marketing is a legitimate sound business that has been around since 1945 and it provides a phenomenal opportunity for those who love to help others and are focused on committed to what they do.

It takes time to build a solid business just as it does to gain knowledge and skill in any area of life. if you are seriously contemplating joining the Network Marketing industry I highly recommend you read Robert Kiyosaki’s book The business of the 21st Century, then once you have decided it is really what you want to do look for a product, company and a leader that you can become passionate about working with and get to work.

Break Even On Your Next Direct Mail Campaign…And Still Generate Huge Profits

With direct mail, you can break even and still claim success. The reason for this can be understood only when determining the lifetime value of each customer brought in and the likelihood of those customers responding to subsequent offers. Here is a concrete example to illustrate my point.

Joe’s Civil War Shop

Joe owns a Civil War souvenir shop. Yes, believe it or not there is a rather large market of Civil War nuts who collect anything from old bullets, to swords, to manuscripts written by confederate generals. Joe’s sales have been slowing since he is located in Virginia, the capital of Civil War memorabilia because this market has saturated itself from having close local stores to buy collections from.

So, Joe decides he wants to sell nationwide through direct mail. He goes out and gets the best Civil War nut list he can find (no offence Civil War lovers…), hires the best copywriter he can afford and sets out on a little campaign of his own…a direct mail campaign.

His sales letter sizzles. Orders come in at a respectable rate, but after he tallies the results he discovers the cost of the mailing just about breaks even with the orders that came in.

My question to you is this:

Should Joe abandon this project or continue?

This is a big decision he has to make. What would you do?

Continue If Your Existing Customers Will Buy More From You

The correct answer is really very simple if you understand the lifetime value that each customer on average brings you.

Let’s say, on average, Joe’s customers pay around $65 for each order they make. But Joe knows Civil War nuts normally can’t stop at just one item. Once Joe establishes a strong trust with his customers by shipping promptly, providing products that match expectations and satisfies the desires of his customers, then on average those customers are likely to buy 2, 3 or more times per year from Joe. So lets say on average a customer buys 3 times a year from Joe. This comes to about $200 a year.

Now after Joe “breaks even” a few times, he will have accumulated a good set of loyal customers provided he shipped on time, provided a great product, offered strong guarantees and gave prompt assistance whenever questions came up.

Now Dig The Gold From Your Loyal Paying Customers

Now, lets go back and see what happens when Joe sends a sales letter to ONLY his core customers that actually bought his products. What do you think his response and order rate will be? His customers already have shown to be hungry for his products. He has more to offer. If he throws in a special offer to his “best customers”, his response rates could be 30% or more.

So by “breaking even” Joe has built a strong customer base loyal to him. Now I ask…did Joe really break even? Of course not, he will make more money later on reselling to the customers he captured on the break-even mailings. At this point he would be stupid to stop after the first mailing.

Does Your Customer Base Fit This Profile?

If you want to use direct mail to expand your customer base, keep this in mind and ask yourself:

“What can I afford to spend to bring in customers who will continue to respond and buy my products at a rate that more than justifies the cost of the mailings and brings a worthwhile profit. Each business will have different ways of calculating this…in Joes case I’ll step you through it.

Let’s Crunch The Numbers To See How To Profit

We’ll use a starting 1000 mailing list as a base. Lets say it costs $800 for the mailing. $200 for copywriting, $100 for the list and $.50 for postage and cost of shipping. The total cost is $800 ($100 + $200 + ($0.50*1000)). Now to break even Joe would need to sell 12 products at $65. $12x$65 is approximately $800. That would be at a 1.2% response rate.

So Joe just broke even…now lets see what happens if Joe sends 3 mailings to those 12 customers at a 30% response rate…

30% is about 4 customers. If each order is $65 then 4 x 65 = $260. Now this time sending mail costs only $6. So this time Joe made $254 dollars mailing to only 12 customers!

Let’s Try It On 10,000 Mailings

Once we use 1000 customers to find our winning sales letter that gets just a 1.2% response (of course a better response will mean more money), lets see what happens when we roll this out to a real list of 10,000.

With 10,000 mailings and 1.2% response, sales = $120*$65 = $7800. The sales letter has already been written, so no charge. Therfore, $7800 (sales) – $5000 ($.50 for each letter — 10,000 letters) = $2800 in sales.

30% response on future mailings to 120 customers is 40, so 40*$65 = $2600 in sales! Subtract out the cost of the mailings of $60, then the final sales is $2540 from just 120 people! Now do this 3 times a year and you’ll likely make $7620 or more extra per year!

Test, Decide, Profit

With a few test mailings to 500 ot 1000 people in your market, you can determine what your profits will be when you roll it out to 10,000. In this case, if you market is made up of 100,000 people, you stand to make $76,200 per year with this campaign. And let’s say the average product is $130 dollars…you can make $152,400 per year!

I hope you can see the power of careful testing followed by controlled follow-up with your customers. Use the simple calculations I showed you in this example and see if they may work with your own products. Remember, test your first mailing on a small list of 500 or 1000. Do this until you get a response rate that justifies rolling it out to more people. Also, know your market. Calculate how much the average customer is likely to buy over the course of a year. If it all adds up…go for it!

Next article I’ll show you another way to leverage your existing customer base to make even more money. Stay tuned.

(Disclaimer: The information contained herein is meant for educational purposes only. The reader is solely responsible for any actions made based on the information contained in this article. Many factors affect success such as product, mailing list, offer, sales letter, etc.)