There’s More to Marketing ROI (return on investment) Than Meets the Eye

All too often people look at marketing ROI in terms of response rate: in other words, “I sent out 10,000 pieces of direct mail and only got 39 responses which is terrible.” This is wrong think.

When it comes to marketing ROI, you have to realize that the term means Return On Investment and the return is measured in dollars (or your local currency). Let’s say you spend $2,000 to get out a bulk mailing of 5,000 pieces and you get 10 calls as a result. Doesn’t look like much. But of these 10 calls you close 6 and get immediate sales of $12,000. That’s marketing ROI! And that’s not even taking into account the future sales to those 6 new customers. It could add up to hundreds of thousands of dollars.

The same simple mathematics apply to any other marketing efforts: radio ads, press releases or articles in magazines, print ads, yellow pages, web site, etc.

Obviously you need to keep track of response from each marketing campaign you do so that you can weed out unsuccessful campaigns and strengthen successful ones.

Case in point:

Jeff Lee, CFO of a very successful consulting company, Measurable Solutions, has adopted a successful small business marketing strategy based on direct mail marketing. Key elements are mailing out a newspaper and full color postcards. The design is done in house and the printing and mailing is done by a specialized postcard printing company. In his own words…

“We get our best response from mailing out a newspaper and back it up with postcards. Depends on the postcards. Some postcards have pulled better than others.

The professionalism of the postcards is something that is effective: it gets attention, it keeps the image that we want to keep, it creates the reach, it creates the response and keeps our leads in a very high range.

We probably average around 7,500 post cards per week. Out of 7,500 post cards we’ll get in an average of 15-20 leads. Of the 15-20 leads at least a third of them come to our introductory seminar. So say 5 or 7 people show up and they pay $1,700 a piece. Off of that we close a further $30-40,000 for services.

The money we have put into the postcards is like a drop in a bucket compared to what we get back. We know that the more promotion we send out, the more return we’re going to get. It always works.”

That is excellent marketing ROI. Measurable Solutions spend about $2,275 for 7,500 full color post cards. That includes printing, postage, mailing (including the mailing list). From that they get between $8,500 and $11,900 in immediate response for an introductory seminar and an additional $30-40,000 follow-up sales.

Spend $2,275, earn $40-50,000. You don’t need to have majored in advanced math and rocket science to work that one out: that is what is meant by marketing ROI!

Results of direct mail marketing vary from business to business but the principle holds and always works: if you send out enough promotion, you will make sales and maximize your marketing ROI. Don’t worry about response rate if your marketing ROI is high.

Key to Direct Sales Success, How to Avoid the 95% Failure Rate in Home Party & Direct Sales Business

One of the best kept secrets of successful direct sales consultants & home party experts that home party and Direct sales companies don’t want you to know is that: 95% of new direct sales consultants fail largely due to info-overload, confusion and flat out frustration! I know you are totally confused now as to what is the a secret to success. The secret lies in this fact:


- Entrepreneur Magazine

Another way of looking at it :

S – Save

Y – Your

S – Self

T – Time

E – Energy and

M – Money

“The ownership of money and property comes as a result of doing things in a certain way. Those who do things in this certain way, whether on purpose or accidentally, get rich. Those who do not do things in this certain way, no matter how hard they work or how able they are, remain poor.

It is natural law that; like causes always produce like effects. Therefore, any man or woman who learns to do things in this certain way will infallibly get rich.”- Wallace D. Wattles

Let me introduce you to the P.A.T Principle Of Direct Sales Marketing And Home Party Plan Success:

1. Planning: Notice the following Home Party Plan Business. Party Plan Model of business. I find it curious that the essential word here is planning! It is no surprise that when you fail to plan, you are in essence planning to fail. Have you met an architect who started building without a blue-print? The leaning tower of pisa though a wonder of the world is a great example of what lack of planning will do. Planning is an essential step to succeeding in any worthwhile venture. Most people get involved in a direct sales opportunity as a quick fix, get rich scheme!

In the planning phase you:

i). Plan your time: Party Plan Pat’s recommendation is 15-20/week. 10-15 of these hours must be used for direct sales party plan opportunity meetings, home party demonstrations, delivery and follow up of home party sales. The other 5-10 is for personal development!

ii) Plan your marketing budget: A monthly budget of $500-$1500/month is ideal. Statistics indicate that low cost home party marketing efforts take seven times as long to yield results. A business without a marketing budget is very much like what starvation does to the body, It will die!

iii). Market Research: Imagine you are standing on a tall mountain looking down. Or in a plane looking down at the scene below. It is breathtaking, magnificent and wow, you are always glad you are part of this world.

Funny thing about all we have discussed is that 95% of problems relating to direct sales opportunities failure and quitting are tied to lack of market research! In essence you are failing yourself by not standing on top of the mountain to assess the situation, to see and be seen! Knowing the questions to ask is like standing on top of a mountain.

Identify those most likely to use your product/service this is called your Target Market. Contrary to popular opinion, everyone with a pulse and a breath is not your target market. You begin to research marketing methods you will implement. A 5-Point Prospecting is highly recommended.

Direct Sales Business Marketing Tip : “The ultimate objective of a business is profit. The primary purpose of a business is to create customers. Profitability without customers is an impossibility.” ~ Mark Sanborn

iv) You create your customer/downline retention strategy. Planning with a purpose is the secret to success.

Tomorrow, we will continue with the A of the P.A.T Principle Of Direct Sales Business and Home Party Marketing Success.

Mobile Marketing is Gaining Popularity in Recent Times

The concept of mobile marketing has gained popularity in recent times. Companies all over the world are making use of this marketing tool in best possible way to market their products and services. This advertising tool enables the companies to contact the customers directly.

There are many marketing tools that enable the companies to market their goods. Mobile is one such device that enables the companies to market their goods. This device has become popular due to many reasons. One such reason is that it is mobile. Secondly, it is always with the people whom you want to convey your message to. So, there is high chance to contact the targeted customer directly.

Advertisers by means of the mobile marketing technique can send the promotional messages to their targeted customers in their mobile phones for promoting the service or good effectively. The message needs to be targeted to the potential customers. This is important. If the message is not targeted to the potential customers than brand promotion might become difficult.

The targeted customers after reading the message sent by the advertiser might not delete it to contact the sender later. But if the case is otherwise, i.e. if the message is sent to the customers who are not interested in the products and services of the company, then he/she might delete the message instantly just after receiving it. This won’t benefit the company in any chance. So, for mobile marketing, the first and foremost thing that needs to be considered is finding out the target audience.

Mobile marketing enables the individuals to get the information that they need for reaching their goals. It is undoubtedly a convenient option. There is no need to go online for seeing the advertisement. There is no need to put on the radio or switch on the TV to watch the TV channel commercial. You can get all information on your cellular phones. You will hardly find people not taking their mobile phones with them when out of the house or even when they are inside home. So, advertisers can contact the customer directly no matter at what time and place the customer is.

Email marketing has also become a popular form of advertisement. Nowadays there are many companies that make use of email marketing technique to promote their brand. However, although it is a popular form of advertisement but still cannot surpass the popularity of mobile marketing tool for brand promotion. Nowadays mobile phones are used in random not only for the purpose of communication but also for the purpose of marketing.

It is the personal touch of mobile marketing that has made it so effective. The promotional message is sent directly to the targeted customers and not board range of individuals. This personal nature has made the concept of marketing more popular in recent times. It is a cost effective way of promoting a brand and is becoming a great advertising medium.