Fixed Cost vs DM by piece count

[jasperjohns]

I recently started a weekly purchase of 1000 to 1200 pieces of direct mail FE leads. Would I be better off if I was on a fixed cost lead so that I can ensure that I get 20 to 30 leads a week? The drawbacks to a fixed cost lead process after my research was that I would be committed to a fixed area for months at a time as opposed to weekly mailings with different zips which would allow me to explore zips and decide what I prefer. The response rate being quoted is between 1.3 and 1.8% (with TLC) which I trust as fair and accurate. That would put me at between $35 and $25 a lead. Besides the predictability of a fixed number of leads....what am I missing. It seems as if the larger FE producers are on a fixed cost system.

 

[Newby]

Either works fine. The biggest advantage of the agents on the fixed cost mailers is the steady flow of leads. If you are taking 20 to 25 leads every week you don’t have time to work your 3 and 4 week old leads to death. And that is a good thing. Work your new ones every week. Toss last week’s in a shoebox.

If you are on just price per 1000 mailers you can do the same thing. Just give the vendor to order for you and hit your card every week and never turn it off.

I’ve not had agents worried about working the same county for weeks and weeks. They usually have the opposite concern of going to many counties too quickly.

 

[VolAgent]

The advantage of fixed price leads is that you are pretty certain to always have the number of leads you desire. You also trade risk for certainty.

If you are comfortable with the risk of expensive leads and poor performance for the return of having more control and possibly cheaper leads and outstanding performance, then stay with mail drops of 1000 at a time.

 

[jasperjohns]

Thanks Newby and Volagent I appreciate the advice!