Direct Mail Question

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ricky32478's picture
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Joined: 2010-09-30

Hey Everyone I hope all is well.  I am currently doing a direct mail campaign.  I got my list from CIS Marketing for affluent households age 59-65 with 250+ in investable assets (they told me they have a verifed way of knowing this).  Part of my mailer is going to the town I live in so I recognize some names and all those peopl3e I recognize have over a million dollars in investables so I think the list is pretty acurate, we will see.  I am sending out 5000 peices of mail.  The list I have is within 5 miles from my office.  I want some feed back from people who have done this type of thing, such as what results it will warent.  I also will comitt captial to do this campeign every quarter with a different type of mailer to the same 5000 people.  The first mailer I am doing is a colorful marketing peice with a free IRA for life (custodian fees waived)  for an IRA with over 50,000.  My compliance manager told me I have to use my firm's logo envelopes.  I am not handwriting the the names but using labels instead. I am also going to put a second label highlighted on the front of the envelope reading "DO NOT BEND".  I am also using a regular stamp to give it a more personal feel to increase response rate.  I am expecting to get 20-30 inquiries, 4 immediate appointments, 6 long term prospects to drip on, and 2 clients. Are these expectations realistic?  Any advice or fedback is greatly appreciated

squash2's picture
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Joined: 2010-03-09

Are you kidding?Free iRA for life... you are talking about $150 annual fee to people with million dollar portfolios??Why not just do a seminar...people more likely to call in for that then, "Hey you can save me $40 on my iRa fees!!" Change the topic at the very least, but i still think mail is fail unless you are following up with a call about something relevant and IRA fee aren't it.

Stockguy2011's picture
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Joined: 2011-03-28

squash2 wrote:Are you kidding?Free iRA for life... you are talking about $150 annual fee to people with million dollar portfolios??Why not just do a seminar...people more likely to call in for that then, "Hey you can save me $40 on my iRa fees!!" Change the topic at the very least, but i still think mail is fail unless you are following up with a call about something relevant and IRA fee aren't it.Agree and disagree.  I see why the "free" thing is included - very common mailer technique/attention grabber.  Probably could be a slightly more intriguing topic, but Squash the people with $1mm probably won't be responding anyway, you have to hope you pull a couple 250's out of the deal, which pays for it.As far as he "free" IRA for life deal... You'd be suprised at just how many people will think that $100 a year is a huge deal, considering they will be paying you $1500-2500 a year.  Goes the other way as well - Do you want the "ultra-fee" sensitive clients?Sounds like its too late for changes now - Good Luck and let us know how it goes.

squash2's picture
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Joined: 2010-03-09

Stockguy2011 wrote:squash2 wrote:Are you kidding?Free iRA for life... you are talking about $150 annual fee to people with million dollar portfolios??Why not just do a seminar...people more likely to call in for that then, "Hey you can save me $40 on my iRa fees!!" Change the topic at the very least, but i still think mail is fail unless you are following up with a call about something relevant and IRA fee aren't it.Agree and disagree.  I see why the "free" thing is included - very common mailer technique/attention grabber.  Probably could be a slightly more intriguing topic, but Squash the people with $1mm probably won't be responding anyway, you have to hope you pull a couple 250's out of the deal, which pays for it.As far as he "free" IRA for life deal... You'd be suprised at just how many people will think that $100 a year is a huge deal, considering they will be paying you $1500-2500 a year.  Goes the other way as well - Do you want the "ultra-fee" sensitive clients?Sounds like its too late for changes now - Good Luck and let us know how it goes.That was my point anyone who would actually call in to change their advisor based on a $150 dollar annual fee is not the type of client you want..I also think unless you are following up with a phone call, this is like offering someone with $25k in their checking account a "new offer to open a checking account and get $25"...

ricky32478's picture
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Joined: 2010-09-30

this is going to be party of a yearly mail campaign.  The first one is a free IRA for life and to call for a complementory retirement anaylsis.  The second mailer will be 4 months from now on ETF investing.  The third mailer will be in another 4 months on fixed income investing with emphasis on call for details for rates. Then and only then will I call every single one of these people.  I don't see how i can loose.  I am cold calling a great source I have right now that will run out within a year.  I wanted to warm up a new list and I think this Idea is a goldmine.  Any suggestions?

squash2's picture
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Joined: 2010-03-09

Of the 5,000 people you are mailing to, they are all not on the DNC? Because you won't be able to contact them(if residential) if they are..I would show some rates on your Fixed Income mailer. 

ricky32478's picture
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Joined: 2010-09-30

not on the DNC rate.  I can't show rates on the fixed income as per compliance ( Major Wire)

ricky32478's picture
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Joined: 2010-09-30

I just sent the mailer out today.  I will update in a week with results

squash2's picture
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Joined: 2010-03-09

Will be interested to be hopefully proved wrong. But as you said this is a year long process.

ricky32478's picture
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Joined: 2010-09-30

first day and I got 4 BS calls, I will update everyday for a week

squash2's picture
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Joined: 2010-03-09

What kind of BS calls?

ricky32478's picture
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Joined: 2010-09-30

people wanting to start IRA's and someone just calling to get info but would not tell me his name or contact info

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