It's Only Money!

Do you have kids?

If not, for a few moments pretend you do!

 

They are going to Wal-Mart to buy school supplies and you give them $100 (cash) to buy a list of items you think will cost about $60.

 

They come home later, you ask for the change and they give you $6.32 back...

 

"WHAT HAPPENED!", you asked angrily.

 

"Well, a few of the items weren't available so I had to buy higher priced ones," they begin with a straight face. 

 

"Plus, I saw some adorable charms to go on my bracelet and just had to have them."

 

Fuming...you compose yourself and say ever so calmly,

 

"How Dare You Waste My Money Like That...You  Wouldn't Have Done

That If It Was Your Money!!!"

 

"Oh dad, it's only money...", kiss on cheek and with that she skips off to her room.

 

"Yes...but it is My Money!"

 

Are you watching the money you spend on your business the same way?

 

I hope so.

 

If you are one of the rare sales people that actually does direct mail or pays for any form of marketing, you should be watching your money with the same level of attention as the scenario I just gave.

 

If you use the "science" of direct mail (The Law of Large Numbers) and don't monitor the results, you could be overpaying!!!

 

For example,

 

If you drop 1,000 pieces of mail each week and pay $400 for it and only look at the sales you get each week you are only getting part of the story.

 

How is the direct mail performing?

 

 

	Scenario #1	Scenario #2	Scenario #3
# of Mail Pieces	1000	1000	1000
Cost	$400	$400	$400
Response Rate	1%	.6%	1.5%
# of Opportunities	10	6	16
Cost per qualified lead	400/10 =   $40 per lead	$400/6 =     $66.67 per lead	$400/15 =   $26.67 per lead

 

Are you tracking response rates and cost per qualified lead?

 

What would you do if you got the results from scenario #1?

 

I would say I played to the "science" of marketing odds and keep doing it!

 

What about scenario #2?

 

I would "Evolve" my marketing approach...my list, income ranges, zip codes, the piece I am using...SOMETHING!  I have to average the industry standard or I am paying too much!

 

Scenario #3?

 

Jump for joy!!!

 

How will you know what to do (managing) if you are not watching like a hawk (monitoring)?

 

Realize that while it's only money...

 

IT'S YOUR MONEY!

 

Until tomorrow, I wish you Money, Power, Success!