Increase Your Direct Mail Response Rates With Freebies.
August 18th, 2009 | 
Author: Increase Your Direct Mail Response Rates With Freebies.
Although it may seem counterintuitive giving something away atno charge can lower your cost per lead. That’s because offeringa freebie usually increases your response rate.
Here’s an example of what I mean.
Your cost per lead is the money you must spend to acquire onelead. When you mail 10000 strangers at a cost of 0.50 each5000 and get a response rate of 1 100 leads then yourcost per lead is 50 5000 in cost divided by 100 leads.
Now let’s say you offer a free information booklet. The bookletcosts 1 but offering it increases your response rate from 1 to3. Here is what happens:
Your cost of mailing remains constant: 5000 Your response rateincreases: 3 So your number of leads increases: 300 leads Yourcost per lead drops: 16.66 5000 divided by 300 Add the costof your freebie: 1 per lead And your new cost per lead is:17.66
So you see that by offering a freebie that costs you 1 extrafor each lead you generate you almost cut your cost per lead inhalf even though your total costs increase. That’s because your1 freebie tripled your response rate from 1 to 3 entirelypossible.
By the way if you want to reduce the number of “freebiecollectors” that you attract link your freebie with what youare selling a free lawn analysis for example rather thanoffering something that just about everyone would want for freean AM/FM radio for example.
Chris Burns American Profiles Mailing Telemarketing List company. Providing telemarketing lists to the direct marketing industry since 1996.
A full service mailing telemarketing list company with over 40000 lists available. http://www.americanprofiles.net/.
Online counts and orders 24/7 http://www.mailinglistsusa.com/.
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