Published on May 15th, 2008 | by Janine Popick8
Lead Generation Idea – Good, Bad & Ugly
I got a direct mail piece the other day in a letter format. It was from a company that “teaches managers how to manage,” so they wrote. They were requesting a meeting with me to talk about how they can help our company. They had a $50 bill clipped to the letter. The punchline said:
“The $50 is yours to keep as prepayment for spending 3 minutes with me on the phone when I call to follow up.”
It could work to your benefit. Let’s say your list was a very targeted list of 100 CEOs at businesses you’d like as customers.
Printing Cost: 100 x .20 = $20
Mailing Cost: 100 x .42 = $42
Money Cost: 100 x 50 = $5,000
Total Cost: $5,062
Response rate (high because you’re so clever) is 10% so number of meetings is 10.
Close rate (high because you’re killer on the phones) is 50% so the number of new customers is 5.
If you charge $2500 (guessing) per training, you’ve got $12,500 large in your pocket, 5 new customers and you’ve made $7438 to put towards your next mailing. Nice.
Christine, our office manager, answers the phone when I’m busy and I started to get calls from the sender of this mail piece. They would never leave a message, just their name regarding the “money they sent me.”
This is an uber form of OPT-OUT. It’s like sending someone you’ve never talked to an email, then telling them they’re going to hear from you until they unsubscribe.
So on the negative side, if you’re going to do something like this, be prepared for:
a) Brand damage – Some may not like this marketing tactic and tell the world.
b) The people who don’t see the need for your services but keep the dough. It’s the cost of doing business.
c) Sending money through a shipper seems a bit risky.
Hey, $50 is nice and would contribute greatly to the “beer fund” at VR, but for me personally, I didn’t really need to feel guilted into talking to someone just to feel good about keeping it.
So…I sent it back.
Should I have? You tell me…
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