So I thought I should make a post to further talk about this fly wheel of action we mentioned in our previous post Take Massive Action
which also actually also has to do with the latest post about Writing Dynamic Sales Copy With Shaune Clarke
We actually kicked this particular action fly wheel off around 3 weeks ago.
The particular industry is not important, it is outside of the IM industry, it is an monthly service with the average price being between $1500 & $2500 per month, and it is a new company for us.
Our goal is to beat down our competitors so they dont know what hit them because the industry really is in a bad shape.
So our first method of marketing was very simple… Very effective.. Old School Direct Sales Marketing.
Thats right… We created a sales pitch… Printed Letters… Licked Envelopes & sent REAL mail.
I would go as far to say real mail has even more effect these days then email with all the spam going on.
Obviously we used Shaune Clarke’s immense copywriting skills that he taught us in his copywriting coaching program to create the letter & then we set about sending out.
Our goal was to send out 50 per day to reach 1000 business owners as our test.
To do 50 a day although not much, is actually quite a bit to do when you have to modify the letter every day, print them out, fold them correctly, put them in an envelope, stamp it and send it.
All up it took both Daniel & I around 2.5 hours every day each so 5 hours of man work.
We decided to do it ourselves first so we could build the system should it prove being worth it, and then hire someone to do it all day.
So I bet you would love to know the results right?
Well we know the average client would stay with our service for around 10 months, most often then not it was much longer but this was the minimum.
Hammer Time: (Okay poor Mr T joke there)
- We sent out only 600 letters
- Average call back rate was 2 - 3% (pretty darn good for direct mail)
- My closure rate on the phone was around 75%
Total Action Cost:
- 50 cents per stamp
- 50 cents for ink, paper & envelope per letter (used office printer)
- Total Cost Of $600 (around that dont have final numbers yet)
Total Action Profit: - We are still finalizing some of the contracts though they are as good as done
- 2 x $2500 per month client
- 1 x $1000 per month client
- 1 x $250 per month client
- Total Monthly Income Increase: $6250
- Total Client Value Over 10 Months: $62,250
So let me just get summarize this.
We spent $600 in cost
We will make $62,2500 over the next 10 months
Does it work when you can take consistent action?
You freaking bet it does.
Could anyone have done this…. Absolutely
So the next step for us is to hire someone to stuff envelopes for us all day long and get sending. We have a system that works now so its ready to step up a notch.
This is just one spoke in this action wheel, now do you think as we add other spokes this wheel of action gets pretty freaking huge?
Again if you dont know what I am talking about by action fly wheel & taking urgent action check out…
Take Massive Action (inspired by Rich as mentioned in the post)
And Rich’s two latest posts
Taking Action - The tiger Woods Secret
These are our real results & we do take this seriously…
If you just find something your are good at or that you can offer to the market you really can make a fortune with taking massive action.
Have a wicked weekend
Marc Lindsay
Popularity: 60% [?]
Been there done that. Didn’t even get a stupid T-Shirt.
Seriously though, the impact of your post is skewed just a tiny bit by the huge payoff per sale.
I’ve done the “mail every day until your tongue is bent and slimy” thing for my $59.00 annually dental plan. Virtually no results. Oh, a few sales for a month of lickin’ and stickin’. Three x’s $59.00 = $177.00 gross. No big hungry crowd and at 59 bucks it takes a BIG CROWD!
Now, if each sale was worth 2 grand a month then lickin’ and stickin’ = $6,000 and I can do a lot of linkin’ and stickin’ for $72,000 a year!
Yes, my hat is off to you guys with all due respect but we (the rest of us) still need a dynamite idea or skill that brings in the big bucks per sale. That’s the real challenge.
Hey, click my link and go buy a Rolex so I can make 50 cents from Ebay.
Hey Jim,
Well in the next few posts we are also doing a checklist of what can make a good campaign.
Me personally I would not have mailed for a $59 plan…
There are a few things you need to abide by to make it work.
If you are in dental industry I would have gone for the zoom whitening rather then a dental plan…
At around $700 to have zoom whitening done (at least here in Australia) then that would be a potentially good product.
As for the idea or skill…. Partnerships can be your friend here. If you dont feel you have a skill find someone who does and be their action.
I really need to start screening Marcs posts… he doesn’t know when to keep quiet…
Daniel
Marc, it is great to hear the results you have gotten. However, eventhough this process can work, I’m sure you can find even more times where it won’t. Therefore I will really look forward to the list of “what it takes” that you mention.
Secondly I’m a bit curious about you closing the deal by phone. Now I know that you’re absolutely great at what you do and a closing rate of 75% is VERY good. I’m pretty sure that 75% is not average closing rates in the industry
Regards,
Mikael