Direct Mail Lead Company or Go Through A Printer?

[FRJ]

I used to do direct mail. Then I got training on asking for referrals. I haven't advertised in years since nailing the process. I watch videos, practice, and I keep getting better at it. I get a few referrals for ever sale I get, then I go back and get more.

Direct mail - Expensive.
Referrals - Free.
Direct mail - Low response.
Referrals - High response.
Direct mail - Low close rate
Referrals - High close rate.
Direct mail - Harder sale.
Referrals - Easier sale.
Direct mail - Lots of work, no guaranteed sale, stress, expensive, etc.
Referrals - Lots of time vacationing, dirtbiking, 4wheeling, watching movies, hiking, and spending time with my friends and family.

If you enjoy spending money and having a low close rate, you should focus your energy on DM. If you enjoy a smooth sales process and making money, start watching videos on properly asking for referrals. It's your choice.

Not sure why but this response makes me want to barf. DM will lead you to some bodies to get in front of that you can THEN get into a referral system.

 

[VolAgent]

The problem with referrals is you have to have someone who will refer you. So until you have a base of people able and willing to refer you, you need another source of leads and clients.

Since it appears you want to focus on FE, I would look to all the big producers in FE. To the best of my knowledge, they all still buy leads. They get referrals, but they still buy leads. Why, because that is really the only way for them to stay busy and write at the level they want.

As to sending out your own mail, in Florida a 1% response rate is a pipe dream. Unless you are going to offer it for free, you won't even get close. And even then, you still probably wouldn't get a 1% response rate. Florida has gotten so bad for DM, many fixed lead providers won't add new agents in Florida or add a surcharge to compensate for the low returns.

 

[Markthebroker]

Not sure why but this response makes me want to barf. DM will lead you to some bodies to get in front of that you can THEN get into a referral system.

Don't be daft. Of course you need initial customers to get referrals from. That's like saying you can't fill out paperwork because you need a pen first, or you can't go to your sales appointment because you need to put on pants. The assumption is that he already has a few clients, or can figure out how to get them without wasting money on DM.

If you do your homework, and study referral systems, all you need is a few clients to start with. I got one referral at a dinner party, and by referral ended up selling around half the auto repair shops in that town.

 

[Alston]

Don't be daft. Of course you need initial customers to get referrals from.

To be fair to FRJ, you did initially seem to phrase it as a binary choice.

Apparently you didn't mean it that way, but I did read it that way.

 

[JJ2713]

The problem with referrals is you have to have someone who will refer you. So until you have a base of people able and willing to refer you, you need another source of leads and clients.

Since it appears you want to focus on FE, I would look to all the big producers in FE. To the best of my knowledge, they all still buy leads. They get referrals, but they still buy leads. Why, because that is really the only way for them to stay busy and write at the level they want.

As to sending out your own mail, in Florida a 1% response rate is a pipe dream. Unless you are going to offer it for free, you won't even get close. And even then, you still probably wouldn't get a 1% response rate. Florida has gotten so bad for DM, many fixed lead providers won't add new agents in Florida or add a surcharge to compensate for the low returns.

What are you mailing?

Who are you mailing? T65? How far out?

 

[VolAgent]

What are you mailing?

Who are you mailing? T65? How far out?

I don't mail, I generate leads on Facebook.

If you are talking Medicare, I would talk to Chazm as he is in Florida and has built his Medicare book off DM to T65s.

 

[KOC Agent]

I found a local printer very close to me who sells 1,000 6.25"x9" cards for $300 plus postage, which is a tad bit on the high side but the volume discount could bring it down to $26/lead (assuming 1% response).

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Are there good ready made designs I can use or buy or am I better off going through a lead company if I have no experience printing?

If a local printer is a good idea, can you tell me if I'm better off doing EDDM postage or has anyone tried using targeted lists and paying the extra postage?

Thanks for any help!

Check out printlabelmail.com

James

 

[misterycake]

Agree that $300 + postage is not a good deal. A few months ago my brother wanted to buy a new printer for his work. His previous printer was black&white, too slowly, and had too many issues. I recommended him to look through this website mrdepot.ca where is offered a bunch of office supplies. On their website, u can find a lot of printer models, ink, and toner cartridges. My brother bought a new quality printer and he is pleased with it. So if u have free time, u can check out this site. Maybe u will find smth interesting for yourself!