You can always continue to check back and read the old posts here on the paper bin, but for updated stuff check out NoteBrainer.com
May 5, 2009
Campaigning 101: List Mathematics
Don’t let your stamps and effort go to waste! If you’re not measuring metrics and variables in your marketing campaign, you’re setting yourself up for a long learning curve and future failure. To maximize a direct mail campaign, you must have laser focus, but the only way to get there is through the systems you create.
Here are some tips in squeezing every potential client out of a list. It’s not exhaustive, but it will help you get started. Remember these rules:
1 List = 1 Campaign
If you have more than 1 list, the worst thing you could do is combine any or all of them, even if it makes mailing easier. Its near impossible to measure the effort to obtain a specific client accurately. Was this person on a previous list and received 5 more mailings than the others? When I combined the lists did this person get double mailed? How many times? What marketing piece?
If you have a larger list and want to measure different variables, split the list. Just be sure you identify your smaller campaign with its parent list. Whatever you do, do not mix.
Make Tracking Easy
Tracking can be very precise, this also means lots of time and effort. If this is your first campaign, make things easy. I would start by tracking 2 variables per campaign. A variable is something that can change or be easily adjusted within a campaign. For instance, postcards can have multiple variables:
- 4×6 or 6×9
- B&W or 4/4 color
- Handwritten, print, or both
- Glossy or matte
- Cartoons or text
If you run a campaign with mixed media (postcards, flyer, letter, etc.) some of the variables remain the same, but every item in your marketing campaign can have hundreds of variables. I suggest starting with a blanket comparison (use examples given) and working from there.
You get tracking results from asking your prospective clients or tracking website activity. Either way, its regular people who give you those gold nuggets, so keep them in mind and make it simple.
Focus Your Target
Take this next rule as your crash course in target practice. Only market 1 item or service at a time. This is an unbreakable rule in direct mail, period.
If you are in the note business, your targets are note holders. “Duh!” I hear you saying, but wait a second. If you buy a list of note holders, why are you marketing them lottery services? “But I market my broker services, too!” You’re saying now. That is probably the case. So many new brokers fall into this trap. Unfortunately, some of the study courses they buy make them this way. I’ll give the courses the benefit of the doubt and say they do it unknowingly, but in either case stop.
The solution: create separate campaigns for other services you wish to advertise, or drop them altogether and get good great at brokering.
Campaign Life
No campaign should run indefinitely; it’s counter-productive. I’m not saying throw away your list, however, use the information you worked so hard for to better focus that and future lists.
To determine how long to run a campaign, you must first know that it takes 7-9 impressions to make a prospect into a client. Keeping that in mind, estimate the number of mailings you will need to make these impressions. If your client lives in a lively city like New York, you will need more mailings to make those impressions than say a client that lives in a rural city. If you have a mixed list, take a stab in the dark, but remember more is better.
Once you have your “impression number”, determine how often your client will receive mail (measure by weeks) and multiply this by your impression number.
Impression Number X Mail Frequency (wks) = Campaign Life
For example: You think 12 mailings will make your 7-9 impressions and you want to mail every 6-8 weeks. Your campaign life is 72-96 weeks.
Response Rate
Nothing much in the initial stage of a campaign in regards to response rate. Shoot for the industry average of 3%. Anything more measure heavily- you may have figured something out.
A Scenario
You have a list of 600 names. You want to know optimum postcard response in regards to card type and content. You make 2 campaigns, each 300 names each.
Campaign #1 has the following:
- 150 names/150 names
- 4×6 in. postcards (both)
- Matte postcard (150) vs. Glossy postcard (150)
- No Cartoon (150) vs. Cartoon (150)
- 4/4 color (both)
- 6-week mail cycle (both)
- Advertising 1 service & free consultation (both)
Campaign #2 or the other half of the list (300) can have totally different variables, or can serve as the control (this means you mail these as you would regularly, no special stuff).
If you follow the example, I would recommend having the matte card with no cartoon and the shiny with, or vice versa. This way when someone calls you and you ask if the postcard they got had a cartoon, you automatically know which group its from (matte or gloss) by their answer. You don’t have to pester them any more and can get down to business.
Put It All Together
Compile this information and start your own campaign. You don’t need a new list, but it will give you more accurate numbers. Begin with a purpose- it can be as specific or vague as you like. Keep in mind people forget advertisements they see within 2 weeks. Using these techniques will help future direct mail efforts. They will save you marketing dollars and help your business run more efficiently.
April 28, 2009
More hours than ever!
I worked well over 70 hours last week. Although I designed the website I was planning to use for my company, I ended up scrapping it because the coding process was taking too long, and I could see that its something really left to the experts. Sometimes I have an uncanny ability to learn things rapidly and for the most part I have a good grasp on what needs to be done, but because I lack the formal training in website coding, the amount of time to achieve the same result is beyond what I can afford.
So I got a WordPress theme and tweaked a little bit of that design. The problem I’m having now is filling the site with content! I have the basics, but its far from where it should be. So many parameters haven’t been touched. Its frustrating the amount of time involved. I know that its time and not cash that’s worth the most value to an individual.
It should be the next few days where the fruit and sweat of my labor come to fruition. Its actually quite exciting! I’ll keep you posted.
April 17, 2009
What I’ve been working on
So some of you may have been wondering what in the world I have been up to since getting my laptop back. Others are concerned because there hasn’t been much action around The Paper Bin.
In either case, here it is:
What’s that you ask? Its my company website thenotefirm.com, my dear reader. But as you are reading this, that is not what you will see when you go there. That’s because its still on my computer. Actually, its still being designed so it won’t be up for a while.
I’m sure this is a $3,000 job minimum just for the amount of stuff I want to pack in it. Of course I don’t mind because I have full creative control and its (essentially) free. I am designing it myself.
I was going for an “old world mortgage document” sort of look. I’m not sure that’s where it ended up, but I’m okay with that. It’s all a part of this new campaign I’ve been telling you all about.
Who could look at something like that and not take seller finance seriously?
Let me know what you think!
April 12, 2009
Campaign Expanded
I was able to get my laptop back after some time (2 years) of it being unable to charge. It wasn’t in the shop for 2 years, it was collecting dust. I was running business from the house computer, and while a computer is a computer, the shared time distracted me from full expression- not to mention disk space issues (something you could imagine on a 3 person, 6 year old computer). So now I’m a mad woman browsing everything I can in the comfort of my room (wi-fi rocks!). I can’t begin to compile the list of websites and resources I have gathered in this time, but I will tell you an idea currently shaping the expansion of my campaign.
A blog post: I googled info on postcards, looking for the cheapest deal. I have been using Overnight Prints for the longest, but at my core I’m more frugal than loyal. This search resulted in a bust, but amongst the hodgepodge of links I ran across a blog post titled, ”6 Things I know about postcards that You don’t“. Take the time out and read it, after you’re done here of course. I clicked it fully expecting it to say things I already know of postcards, even elementary stuff.
I was incorrect in my assumption, but only partially, because of these 2 points:
#1- Although most people, if surveyed, say they like full color on both sides, the truth is black on white on the back of the postcard gets a better response.
#2- You should promote only one thing at a time on your postcard.
Come again? You mean to tell me I’ve been doing it wrong the whole time? Yes and no. Let me explain.
#1 brings the importance of “less is more”. With too many colors on the palette the eye is distracted and doesn’t grab the main focus as easily. Its confusing. The remedy for this isn’t no color at all. On the contrary, boring won’t interest a potential customer either. The idea is to use color in such a way that it enhances the piece.
#2 really should cut a little deep to all note brokers. How many times are we informed to make a postcard that sounds like this?
I buy mortgages, deeds, land contracts, notes, settlements, trusts, lottery winnings and annuities. Call me.
If you think about it, its illogical. You bought a list of note holders, not lottery winners, so why promote it? I’ll reiterate the point: Promote one thing at a time. Period.
March 28, 2009
$27
This is how much it is now to send out 100 postcards to note holders. The cost of the postage on a 4×6 postcard was raised .04 cents.
Why make a notion about it? I don’t know. Something about knowing the exact amount might help someone…
Maybe not.
March 16, 2009
Font: Jellyka, St. Andrew’s Queen
If you send out a lot of letters, and want to make them have a more handwritten feel, grab this font for your signature at the bottom. Or you could try typing a whole letter with it or postcard.
This font can be found at Dafont.com .
March 8, 2009
Do you know what Twitter is? The best way to describe it is a text message for the internet. You write something in 140 characters or less, and send it out. It is then transfered to everyone who “Follows” you, which means every time you write something, they can read it instantly.
Well, this medium has been booming. Everyone it seems is using it. From online entreprenuers to CNN. And now the Paper Bin does too.
To follow me, http://twitter.com/paperbin
I’m super excited because I have another project that I plan to start in the summer. The summer?! Yes, its going to take a lot of planning, and I like that part the best.
March 4, 2009
Font: Green Piloww
You can make your flyers and other materials pop with free fonts found online. Not everyone can draw, but the good thing about a font is anyone can type.
Feel free to download the font and try making your own flyer on your computer’s word processing program. The example below has more a cartoon feel. You can download the cartoon and use it if you like, I got it from a Freebie site.
Featured font: Green Piloww
March 2, 2009
Something you can use
This is a list of 17 things that note holders have to think about or deal with while maintaining ownership of their note.
I got the list from Kent Anderson’s new home study course which I am currently reviewing.
1. Compliance with Fair Credit Reporting Act
2. Compliance with Truth in Lending Law
3. Collecting payments
4. Principal and Interest breakdowns
5. Default
6. Divorce or Death of Payor
7. Federal Income Tax Reporting
8. Destruction of Property
9. Fire Insurance
10. Bankruptcy of Payor
11. Foreclosure
12. Abandonment of property
13. Payment history
14. Keeping Original Documents Safe
15. Deficiency Judgements
16. IRS Tax liens
17. Payor with Bad Credit
