How To Know If You Can Sell
Your Product By Direct Mail

by Tom Egelhoff

Author Tom EgelhoffI talk a lot about direct mail on this web site because it is one of the most successful and inexpensive ways to market your product...if it's done correctly.

Those last four words are the key.

Most industry experts say that a one to two percent response is an indication of a successful campaign.

So, when you decide that you want to sell your product by direct mail how do you know how much to mail?

And, can you make any money?

You'll want to start with a small test mailing. I usually recommend 5,000.

It's small enough that it won't bankrupt you and large enough to give you a sizable number if you get a one to two percent response. (1% = 50, 2% = 100 responses).

This will also give you a guide as to costs of the mailing for the response that is returned.

For example, let's say you mail 50,000 offers. You get a 1% or 2% response. (1% = 500, 2% = 1,000 orders)

Your product sells for $14.95 (You gross $7,475.00 or $14,940.00)

What happens when you deduct the expenses. Printing, postage, cost of list etc.

If each mailer cost just .50¢ your expenses are: $25,000.00. You just lost $11,000.00.

To make this successful one of three things must happen.

1.) You must sell the product for around $30.00,

2.) You must cut the cost of the mailer, or

3.) You must increase the response from 1% to 2% to at least 2% to 4%.

Numbers one and two are the most likely but number three can be the most effective.

The better your mailing list the higher your response rate will be.

Provided of course, that you have a good product and a good offer.

Also See: Direct Mail: Why It Works And How To Use It

Also See: Direct Mail Formulas for Success

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