PROTOTYPE PACKAGE FOR LIST APPROVAL

    Another point to consider is that the list owners whose lists you rent will want a "sample package" to look at before they approve your rental request. Frequently rough layout and copy may do the trick, but you will need your package written and mostly designed before you can submit list rental requests.

HOW LONG DOES IT TAKE?

    Other timing considerations include two weeks for the printer, two weeks for the mailer, and a month for the copy/design/approval process. Custom envelopes can take 6 to 8 weeks to deliver.

MAKE A BUDGET

Here's simple budget format that will help you determine whether you're ready to do a test mailing.


Function                                                          Cost/M                  Total Cost

1. Copy & Creative*                                          N/A                  $___________         

2. Total Package Costs                                      $_________      $___________

3. Total Cost (line 1 +line  2)                            $_________        $____________

4. Cost of Product                                                  $_____________

5. Fulfillment (Shipping, Postage)                        $_____________

6. Total Fulfillment, Product Cost
    per order (line 3+line 4)                                    $_____________

7. Number of orders received                                $_____________
  (Estimate several rates of response)

8. Total Cost for Orders Received
  (Line 5 x line 6)                                                  $____________

9.  Allocated Overhead
    (Salaries, phone, rent, etc.)                              $____________

10. Guesstimate Cost of Refunds/Returns          $____________

11. Total Uncollectibles x Selling Price                $____________
     
12. Mailing Grand Total
    (Add lines 3, 8, 9, 10, 11)                                  $_____________
                   
13. Number of Orders/Inquiries                          $____________

14. Per Order/Per Inquiry Costs
    (Line 12 divided by line 7 or 13)                        $____________

15. Cash Received Per Order                                $_____________

16. Total Cash Received
    (Line 7 x line 15)                                                $_____________

17. Net Profit
    (Subtract line 12 from line 16)                          $_____________


* Remember that creative is a one-time cost.