As with any business offer, the price associated in a direct mail business is usually an important factor that is supposed by advertisers before they opt for it. The cost that a direct mail advertising campaign might undergo depends on a lot of different factors ranging from the type target list of addressees that is to be procured to the quality of paper that is used to make the advertising on.
Several of the main variables on which the price of a direct mail campaign depends on are:
1. The list of recipients that is got from a direct mailing list broker – The cost of this list may differ from 20 USD per thousand addresses to around 200 USD. This is a quite important factor on which corners shouldn’t be cut for the sake of lessening costs as the success of the campaign is straightly connected to the type of audience which is aimed. If the aimed recipients have no use for the specific output that the advertiser seeks to sell, then the entire purpose of the direct mail business is lost. For instance, it won’t be a beneficial investment to obtain a list of recipients who are singles without issues for a campaign selling baby food, and baby outputs as most of these singles would not be interested in the product.
2. Quality of the direct mail campaign – If you would send out cards or catalogs that are printed on glossy paper with colorful designs and pictures on them, the value might be much greater than a simple paper mail with printed words on cheap paper. Since most postal services charge on the basis of the size of the mail or its weight, with the costs enlarging corresponding to the increase in size and weight of the mail package, it would be prudent to go in for sleek and to the point direct mail ad campaigns, that can reduce the costs considerably.
3. Postage – Postage makes up the bulk of the campaign cost but can be as low as 12.7 cents.
Direct mail marketing is a costly form of advertising campaign that may be embarked upon and yet is the most successful. The cost incurred from start to finish after considering the above factors would be anywhere between fifty cents to a dollar per direct mail. The thing to look out for is the return on the investment that you could get, even if you end up spending a great sum of money on the campaign.
If on an average, a thousand mails would create 20 leads and every of the leads significantly covers the cost of the campaign as well as produces the envisioned benefit margin, then it is worth going for such a mode of advertisement. The majority of postal services offer ceased rates for direct mail campaign permits that enable the advertiser to cut costs on this front. The US postal service offers a lot of direct mailing packages that a prospective advertiser could select from, depending on his needs.
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