Mailing...

32 replies [Last post]
chief123's picture
Offline
Joined: 2008-10-28

I have a friend(no not me, because I despise this type of prospecting)... who wants to send out mailers every month as his form of prospecting(EIAs, Portfolio Review) something to get there attention to call in....
 
I told him he would probably have to send out around 4,000 pieces/month...
 
Wondering if anybody actually does this and does well from it....

Ron 14's picture
Offline
Joined: 2008-07-10

When I was at EJ I spoke with a guy in Missouri who would send out 2-3,000 Muni rate postcards every month and he would get about 10 -15 inquiries. He would then hand deliver information to the persons home to add a personal touch. This guy was on fire. I doubt your friend wants to do the hand delivery portion.

gethardgetraw's picture
Offline
Joined: 2009-10-22

I don't have any personal experience with it but obviously it gets very expensive in a hurry. Using Ron's example, 2,500 postcards at $0.27 for the stamp (excluding the cost of the postcard itself), comes to $675. So out of those 10-15 inquiries, you'd need to purchase at least $22,500 of a 3% bond to break even.
 
That sounds reasonable actually.

Spaceman Spiff's picture
Offline
Joined: 2006-08-08

He'd be better served with a product vs a service.  We send out lots of direct mail stuff through Jones for things like portfolio reviews, 401k rollovers, etc, but never get any follow up phone calls.  I think if he were advertising a rate like the guy Ron mentioned, he'd get a better response rate.

Roxie's picture
Offline
Joined: 2009-10-19

Reads like the Bill Good Marketing System.

EDJ4now's picture
Offline
Joined: 2006-02-08

If he is serious about this, he should call the guys at Bill Good.  They know how to do it right, and as much as he will spend on postage he just as well spend another $10,000 to get their system and get trained on it in SLC.  I don't really do much of this with them, but I know quite a few guys do.  I used it more to get client loyalty, as I knew I would be leaving the bank within a couple of years.  If he is interested, PM me, I think I get $100 for making a referral, and I would split it with him (or you).

Sportsfreakbob's picture
Offline
Joined: 2008-08-24

If you use a mailer, there has to be a call to action.
A few years back I started mailing out a trifold that offered an email version of Municipal Market Weekly, which was a 3 pager, with a few comments and some inventory lsitings. It had a tear off card to mail back, postage paid. The prospect had to fill it in with his phone number and email and mail address. I only sent out about 20 a day for a month or so, then got sidetracked with other things, i used it as a filler for downtime. So i dont think i did enough of it to really make a judgement. But i think i got back about 3% which is pretty high. And in fact i opened one account from it, a retired Sr VP of Operations at MS Corporate. Bought 20 bonds, and has added here and there since, has about 300k with me. But it think having a response card is key.

B24's picture
B24
Offline
Joined: 2008-07-08

gethardgetraw wrote:I don't have any personal experience with it but obviously it gets very expensive in a hurry. Using Ron's example, 2,500 postcards at $0.27 for the stamp (excluding the cost of the postcard itself), comes to $675. So out of those 10-15 inquiries, you'd need to purchase at least $22,500 of a 3% bond to break even.
 
That sounds reasonable actually.
 
Actually, if you are trying to look at a pur dollar break-even, you would need to do more than that.  If you are at a captive firm and your payout is 40%, here's the math:
 
$675 cost
@ 25% income tax = $900 Net payout
@ 40% payout = $2,250 GDC
$2,250 GDC @ 3% RIP = $75,000
But remember, not all of it will be at 3%.  That would be just be for the longest bonds.  I would look at an average of about 2.25% at most.  On that, the math is about $100K in bonds.
 
Still do-able, but not a slam-dunk.  I would look at that more as a cost-neutral way to gather new clients.  It will really depend on what type of clietns you attract.  If you can do a minimum of 20-40K per client, then you might be OK.  You just can't be doing the 5K crap and expect to get 20 clients a month.
 
I have heard of other people doing this and it being effective.

noggin's picture
Offline
Joined: 2004-11-30

I send out 300 letters a month with a call to action to a targeted list. I have no cost in it so therefore it makes sense to me.

chief123's picture
Offline
Joined: 2008-10-28

noggin wrote:I send out 300 letters a month with a call to action to a targeted list. I have no cost in it so therefore it makes sense to me.

Mind sharing a little more specifics?

B24's picture
B24
Offline
Joined: 2008-07-08

noggin wrote:I send out 300 letters a month with a call to action to a targeted list. I have no cost in it so therefore it makes sense to me.
 
Does the bank pay for it?

WarRoom's picture
Offline
Joined: 2009-10-25

Mailing works but it takes capital, process, and work. I'd say anything less than 2000 and you are wasting time.

Here is how you do it:

Mail a rate
Mail a seminar invite, follow up with call
Mail a rate and call

Squash1's picture
Offline
Joined: 2008-11-19

If you have to mail yourself... good luck with the bulk mail discount from the Post Office(they speak in codes)...
 
I have a company that already has the bulk mail(so for $0.18/piece(oversized postcard) they mail it out for me..(sure I pay a little for the post card but still coming in under what you pay mailing letters yourself)

chief123's picture
Offline
Joined: 2008-10-28

yeah real challenging....
 
pay $185... then fill out the forms..

noggin's picture
Offline
Joined: 2004-11-30

B24 wrote:noggin wrote:I send out 300 letters a month with a call to action to a targeted list. I have no cost in it so therefore it makes sense to me.
 
Does the bank pay for it?
 
It's part of the deal even though we are indy of the bank.....
I am sending intro letters
followed by portfolio review letters
followed by an offer of a weekly email
followed by an offer to come kick you in the ars....

fa09's picture
Offline
Joined: 2009-06-03

Squash what do you mean you have a company? Someone in the area that does this? How'd you develop that relationship?

hotair1's picture
Offline
Joined: 2009-03-12

fa09 wrote:Squash what do you mean you have a company? Someone in the area that does this? How'd you develop that relationship?
 
 
Go online and google it.  Dozens of companies.

Squash1's picture
Offline
Joined: 2008-11-19

fa09 wrote:Squash what do you mean you have a company? Someone in the area that does this? How'd you develop that relationship?

 
There are tons of local print shops that can do what I want.. So called them(made sure they had ability to bulk mail for cheap) and then when an visited them, got examples, price shopped, and finally pick a printer.. Did a good job the first time so I keep using him. Now he uses my piece on his example wall(10-15 pieces total) and so I get some free advertising too..

B24's picture
B24
Offline
Joined: 2008-07-08

How many mailings do you usually do on a regular basis?

Squash1's picture
Offline
Joined: 2008-11-19

I do about 1,000/month, similar to what Noggin does(minus the email, but maybe I should add that in, though I am not sure what I would send them that compliance would allow)..
 
Intro, Portfolio Review, Create Doubt(accounts for 50% of letters, and I go in that order(sometimes stop by at house after 3rd letter)
 
The other 50% is product (EIA, Muni, REIT, high income somethings, flashy rate)
 
Then i do quarterly for seminars..

AdvisorControl.com's picture
Joined: 2009-05-29

For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.

hotair1's picture
Offline
Joined: 2009-03-12

AdvisorControl.com wrote:For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.
Care to tell us more?

AdvisorControl.com's picture
Joined: 2009-05-29

hotair1 wrote:
AdvisorControl.com wrote:For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.
Care to tell us more?Sure - what specifically would you like to know?  There's a lot of moving parts, so writing  multiple page expose on direct on the forum may be a little much...but I can drill down a couple areas if you'd like.

B24's picture
B24
Offline
Joined: 2008-07-08

You are referring primarily to your seminar mailings?

hotair1's picture
Offline
Joined: 2009-03-12

AdvisorControl.com wrote: hotair1 wrote: AdvisorControl.com wrote:For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.Care to tell us more?Sure - what specifically would you like to know?  There's a lot of moving parts, so writing  multiple page expose on direct on the forum may be a little much...but I can drill down a couple areas if you'd like.
 
Thank you.  Have you done mailings outside of seminars that have been effective?  If so, what was the call to action?  What follow up was done on your part?  Just curious what your process is. 
 
Also, you said post cards had been effective for seminar marketing on your website? Can you expand on that.
 
Good website by the way - I stayed up too late last night watching your videos.

B24's picture
B24
Offline
Joined: 2008-07-08

hotair1 wrote:AdvisorControl.com wrote: hotair1 wrote: AdvisorControl.com wrote:For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.Care to tell us more?Sure - what specifically would you like to know?  There's a lot of moving parts, so writing  multiple page expose on direct on the forum may be a little much...but I can drill down a couple areas if you'd like.
 
Thank you.  Have you done mailings outside of seminars that have been effective?  If so, what was the call to action?  What follow up was done on your part?  Just curious what your process is. 
 
Also, you said post cards had been effective for seminar marketing on your website? Can you expand on that.
 
Good website by the way - I stayed up too late last night watching your videos.

 
"Is that Jason and Len in Speedos?  What are they doing?" 

chief123's picture
Offline
Joined: 2008-10-28

AdvisorControl.com wrote: hotair1 wrote: AdvisorControl.com wrote:For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.Care to tell us more?Sure - what specifically would you like to know?  There's a lot of moving parts, so writing  multiple page expose on direct on the forum may be a little much...but I can drill down a couple areas if you'd like.

Ever going to update the site??

hotair1's picture
Offline
Joined: 2009-03-12

?

AdvisorControl.com's picture
Joined: 2009-05-29

Ladies and Gents -Yes, I'll be adding some things to the site.  Just remember that the site is free, I do it when I've got extra time and I've been working on a few projects that have had me tied up as of late.  Also, there are a few new things this year and we've enhanced some of functionality.  If you look around you'll find what I'm talking about.Back to the topic...For me, the best return on time and money has always been seminars.  But I've done a lot of additional direct response advertising.  Here's the breakdown of what works - done ultra simple so some of this may seem overly obvious but here none the less:Whether letter, postcard or placement ad - you should always have a title to your ad"Free Widget Generates Oodles of Tax Free Cash for Miami Midgets" - you get the ideaYou should then address skepticism, qualify prospects, and validate your offerMost Miami midgets would love to get lost tax free income without taking big risks - but have always thought was a mythical fantasy.  Until know, they were right.  But due to a seldom used change in the 1927 tax code, it is actually quite easy for midgets to get investment income and pay very little or even no tax.  In fact, Montoya Wealth Advisors has just published a free xyz that breaks down in simple, broken english, exactly what you need to do to make this tax free fantasy a reality in your life if you have $30 million or more in small unmarked bills.  Here's some details...The you have some bullet points using the 1 - 2 punch method(punch 1).  Most Miamian's don't realize you can buy and sell crack free from taxes.  (punch 2)  Cuban drug lords have been doing it for years though and now you can too! (yipee!!!)...followed by bullet 2, 3, 4, and maybe 5, 6Explain how they get it with confidential risk free stepsTo get your free xyz you need to do follow these simple steps1. Have $30 mil large2. Be a toolbox3. Call our secure, confidential 24 hour voicemail line (just leave your information and we'll mail it right out - no salesperson will bother you)4. Visit our secure, confidential website at www.sellcocainegetloadedgetshot75times.comOnce we've received your request your xyz will be rushed out via priority mail within 24 hours.Create sense of ugency...You will need to act quickly.  We've only a limited number or xyz - so once 25 requests have been received we will have to put you on a waiting list until the next time this offer is made.Reiterate how to do it again...Add disclosuresSo that's the ad part.Then you have to have something you are offering.  If you think you can offer consultations, then you should actually follow my fictional ad above as you are more likely to make money with that then offers for sales meetings.For inspiration on how to effectively generate leads using this medium and what offers work for advisors - just look at the stuff Fisher Investments does.  It works, it's direct mail, it's compliant.  It doesn't directly close new clients, but it does get people to raise their hand and say..."hey, Ken, look at me!  I've got $500k to invest and am OPEN to looking at your stuff"The Fisher sales dudes and marketing automation do the rest.  They drip, drip, drip....call, call, call.They do this because they know they have quality prospects - people with money who are at least open to the idea of doing some different.This is what direct mail campaigns should be all about: making prospecting easier for those who don't have networks to rely on for referrals or family money to pimp.It's also very scalable (done with or without much of a budget) and much more efficient than just cold prospecting.There have been a few requests for me to show actual examples of our marketing pieces on AdvisorControl.com.  To satisfy those requests I will put a couple PDF's of our lead generation pieces and if you all are half as good at recon work you can also go to my advisor firm website and see what our brochures, etc look like.When I get that stuff online I'll shoot an email out to everyone on that mailing list letting everyone knew that there's finally some new, free stuff for inspirational viewing.Feel free to fire back comments, questions, etc.All the best,JW

AdvisorControl.com's picture
Joined: 2009-05-29

B24 wrote:hotair1 wrote:AdvisorControl.com wrote: hotair1 wrote: AdvisorControl.com wrote:For what it's worth - 100% of my business came from some form of direct response marketing or referral from a client that came from direct response.So I vote that it works, but it is much more involved than just sending a letter every month and waiting for people to give you money.Care to tell us more?Sure - what specifically would you like to know?  There's a lot of moving parts, so writing  multiple page expose on direct on the forum may be a little much...but I can drill down a couple areas if you'd like.
 
Thank you.  Have you done mailings outside of seminars that have been effective?  If so, what was the call to action?  What follow up was done on your part?  Just curious what your process is. 
 
Also, you said post cards had been effective for seminar marketing on your website? Can you expand on that.
 
Good website by the way - I stayed up too late last night watching your videos.

 
"Is that Jason and Len in Speedos?  What are they doing?"  I didn't know that video leaked.  Damn JibJab!

chief123's picture
Offline
Joined: 2008-10-28

Quote:I do about 1,000/month, similar to what Noggin does(minus the email, but maybe I should add that in, though I am not sure what I would send them that compliance would allow)..
 
Intro, Portfolio Review, Create Doubt(accounts for 50% of letters, and I go in that order(sometimes stop by at house after 3rd letter)
 
The other 50% is product (EIA, Muni, REIT, high income somethings, flashy rate)
 
Then i do quarterly for seminars..I think I am going to copy this approach... EIA to crappy neighborhoods.. and the multiple letter method to upscale.. 

MovingUp's picture
Offline
Joined: 2010-02-20

You really have to start at the firm you are with and will they allow a good message.  If you are Indy you have a better chance.  But anything that anyone else has done is accademic if you can't get the same peice approved.
Then you have to look at market.   In my previous town I could do a seminar and get 50 people with little effort.  Current town I could spend $10k and get 5 people (with 2 being current clients).

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×