WHEN, WHY AND HOW TO USE MAILING LISTS
Mailing
lists may be the cause of more heart breaks than any other single factor in
mail order. A poorly chosen list, a weak
mailing and the high cost of mailing to a list can tax the optimism of a new
dealer very, very quickly. Arm yourself
with knowledge before embarking on a course like this!
Whether
you should use a mailing list to sell your product depends on several things:
Is
it too complex an offering to be explained in a 30 word ad?
Can
you afford to mail 200 to 1,000 pieces on the chance that you won't get a
single order?
Can
you make a profit selling your product to only two to twenty people in a 1,000
piece mailing?
Will
a re-order of your product be required, and can you make your re-orders pay for
the losses you will likely get from mailing to a list?
Do
you know enough to choose the right list for your offering?
It
takes either great faith in your offering or great stupidity to mail with a
list. Most list companies today,
specialize in "opportunity seekers" - people generally quite new to
mail order who are either looking for a product to sell or an offer that will
get them rich in a hurry.
Most
of these "opportunity seekers" are engaged in chain letter type
schemes at some point, and they use mailing lists to make gains in their plans. Most of them lose money, but enough people
will try it once to make money, and these pie-in-the-sky dreamers are the bread
and butter for a lot of mailing list companies.
Unless you have a truly superior offering for these opportunity seekers,
and you probably don't, they are not worth your time and money. Most of them are unsophisticated dabblers.
Multi-level
lists, offered by many companies, are truly an interesting way to test response
to an MLM offer. Many MLM people like to
write back - in their own handwriting – about their successes and failures, and
they will always respond to a superior product.
Specialized
product-buyers' lists can pull beautifully if the offering is unique enough,
and worth a try for merchandise marketing.
Regardless
of what kind of mailing list you use, be very careful in choosing a good
list. Many are sold and resold to people
making the very same offering, which is a waste of everyone's money. "Free" mailing lists are usually as
good as their price indicates. Check the
guarantees. Common sense will tell you
which are good for you and which are good for the company selling the lists. And check to see how the lists are compiled. Are they people who have already bought something
by mail, or are they merely people who indicated they might want to buy
something by mail?
In
conclusion, we recommend that you never start any campaign with a mailing list
when advertising is so much cheaper.
While it may prove to be more profitable than advertising, keep this
rule in mind:
When
you're ready to try a mailing list, be fully prepared to lose every penny you
spend in buying and mailing that list, because it could happen.