I just finished answering an email about the huge potential profits available when marketing with postcards. After sending out that email I decided that the topic of the email was good enough to deserve a post of its own on this blog. I hope you agree.
Can a person really start out small and make a lot of money with postcard marketing?
The answer is yes. Let’s look at how easy it is to start out with just a few hundred dollars in marketing capital and turn that into thousands in income. Remember that while my example starts with a few hundred dollars in marketing capital these numbers will work even if you have less money to start with.
Here are the realistic assumptions that we will use for this example…
- The cost to mail out 100 postcards is $40. This includes the cost of the printing, postage, and the cost of the mailing list.
- The original marketing budget is $400. With this you could mail out 100 cards per day for 10 days or do a single mailout to the full 1000 names.
- The response will be 1% which is the national average for postcard marketing at the time of this post.
- The profit per sale is $100.
Based on the above criteria if we spent the $400 marketing budget and mailed out 1,000 postcards and recieved a 1% response to the mailing we would make 10 sales for a total of $1,000. Now we have $1,000 to spend on our next mailout or we could pocket our original $400 we spent on the mailout and only use $600 for the next campaign.
Personally I would use the full grand but lets assume you want to pocket the $400 so you no longer have any of your personal funds at risk.
Based on the numbers above $600 would allow us to do a postcard marketing campaign to 1500 people. At only 1% response that would mean a potential 15 sales or $1500. Now we are getting somewhere.
Now lets start picking up the pace by doubling our mailout every time we do another campaign. If we do that then we are now able to mailout to 3,000 people at a cost of $1200 which leaves $300 profit to go in our pocket. If 1% continue to buy that would mean 30 sales or $3,000.
That means that if we double again then we would now spend $2400 for our next mailout to 6,000 people leaving us with $600 to put in our pocket. That’s a total of $900 in our pocket plus the original $400 we kept to pay back the original advertising funds. Not bad for a few mailouts!
So after our last mailout to 6,000, if we stayed at the national average of 1% response rate we would make 60 sales or $6,000. Which would allow us to double our mailout again and keep $1200 in profit.
So as you can see, it is possible to start out small and work your way up to huge profits quite quickly.
Lets recap and take the example out a few more mailings assuming the same criteria…
1st Mailing to 1,000 for $400. 10 sales for $1,000. Keep $400
2nd Mailing to 1,500 using $600 of profits from 1st mailing. 15 sales for $1500. Keep $300
3rd Mailing to 3,000 using $1200 of profits from 2nd mailing. 30 sales for $3,000. Keep $600
4th Mailing to 6,000 using $2400 of profits form 3rd mailing. 60 sales for $6,000. Keep $1200
5th Mailing to 12,000 using $4800 of profits from 4th mailing. 120 sales for $12,000. Keep $2400
6th Mailing to 24,000 using $9600 of profits from 5th mailing. 240 sales for $24,000. Keep $14,400
If you stopped doubling your mailouts after the sixth mailing and kept mailing out to the same number of 24,000 people each time then your numbers would look like this for your seventh ( and every other mailout).
- 7th Maling to 24,000 using $9600 of profits form 6th mailing. 240 sales for $24,000. Keep $14,400
After only seven mailings you would be making $14,400 profit in your pocket for each mailing AFTER spending $9600 for your next mailout.
If you did one mailout per month that is $14,400 per month. But if you did two mailouts per month you would be making $28,800 per month. At 1 mailout per week… $14,400 per week.
All from an original marketing budget of $400 which you quickly got back.
So now do you see why all the “big guns” are using offline methods to make a huge profit online?
The key is to make sure that you know how to properly market with postcards before you do even your first mailing. This Postcard Profits with Postcard Marketing Course is an inexpensive way to learn what works and what doesn’t.
The HBB Advisor
P.S. If you are looking for a great program to send postcards out to check out the Your Commission Explosion team and their advertising cooperative. This program is so powerful that it actually brought me out of “online retirement”.