I bet you are dying of suspense to hear what happened when I sat down at the Blackjack table?
Well, I confidently put down my $5 chip and drew two cards...12...take a hit...queen!
Busted! Down $5 to the house...
Put down another chip...drew 15...I remembered my Blackjack training card said "hold"...so I did...
The house busted! Now I am even!
Next hand, I drew two Jacks...20...I held and didn't split. House busted!
Your boy is up $5!
Guess what I did?
That's right...I walked away!
I can hear many of you saying, "Why walk away...you were up on the house?"
It was only a test...I simply wanted to prove my strategy would work.
The same way I want you to test some form of marketing...say direct mail.
If 1,000 piece mail drop cost $400 and the average commission on the intended product is $400, I want you to conduct a campaign expecting to sell two people.
It would look somethjng like this;
| Cost of Direct Mail | $400 |
| # of pieces | 1,000 |
| Response Rate | 1% |
| Number of leads | 10 |
| Appointment Rate |
60%
|
| # of Appointments | 6 |
| Closing Rate | 30% |
| # of Sales | 2 |
| Gross Revenue | $800 |
| Return On Investment | $400 or 100% |
That means you spent $400 to earn $400...
More specifically, the first sale went to "the house" to pay for the direct mail...the other goes to you!
So I can hear you say that you can do better than 1% response rate, or 60% appointment rate, and certainly better than a 30% closing rate.
That's great...I want you to do better!
More importantly, I want you to market your business! Won't you do it based on these odds?
If a stockbroker came to you and told you he guaranteed you 100% on your investment, what should you do?
Run!!!
Nothing is a sure thing, so when you are "gambling" your money on the "science' (odds) of direct mail or other marketing strategies, always be willing to take...
ONE FOR THE MONEY!!!
Do better if you can, but it sure beats being down to the house!
Until tomorrow, I wish you Money, Power, Success!
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