I rebooted my Direct Mail Marketing (DMM) campaign this week by adding new territory to my existing list. I created a calendar for next 12 months breaking down each week into:
Below is a screenshot of my mailing calendar:
You can check out the complete calendar by visiting this link:
I have 3 lists for total of 9,512 records that I have divided in 4 weekly mailings that I will be repeating for next 12 months. I will be adding some records and taking some out as the time goes but this is a good starting point for me.
This is my estimated cost breakdown:
Mailer Cost | $68,011 |
Cost of List | $1,902 |
VA and Admin Cost | $25,000 |
Other Misc Cost | $5,087 |
Total Marketing Cost | $100,000 |
Total Cost | $100,000 |
Total Mailers | 123,656 |
Total Cost/Mailer | $0.81 |
Total Marketing Cost | $100,000 |
Average Profit/Deal | $12,500 |
Deals to Breakeven | 8 |
Total Mailers | 123,656 |
Deals to Breakeven | 8 |
Avg. Mailers/Deal to Breakeven | 15,457 |
In total my total budget for my DMM campaign is approx. $100,000 over next 12 months including VA and Admin cost. My total cost per mailer is 81 cents including all the costs and if I expect an average approx. profit of $12,500 per deal, then I need 8 deals in next 12 months for my campaign to break even if I don’t put any value on my time.
In order for me to get 8 deals, I need to average 1 deal for every 15,457 mailers I send out to stay on pace with my break even cost.
I restarted my campaign this week with updated list and I will be sharing numbers on a weekly basis including how many calls I have received, if I added any new list, any potential deals, etc.
Feel free to ask me any questions in the comment sections and I will be more than happy to answer those.