GATHERING INFORMATION, PAID FOR BY SALES

That's my definition of direct marketing. If you make money on each sale, great! But even if you don't -- and many marketers go into a mailing knowing they won't show a profit -- remember that you're looking for information.

Your mailing and your tests should be structured so that when all the numbers are in, you'll know which lists worked (and maybe what segments of individuals on each of those lists)... what price worked...what premium...etc.

You probably can't test all those variables in a single mailing, so go for lists and offer first. That's where you'll get the most bang for your buck. Until those two factors are working for you, you don't have a program. Premiums, copy appeals, format, color of the stamp (just kidding), etc. can all be tested
later.

WHAT WILL YOU DO FOR AN ENCORE?

Whether you make a profit on that first mailing or not, remember that you are buying names. At a profit maybe, or at some cost tempered by sales. That customer list is your store. It's your database. It's your treasure chest. You make it grow by remailing your best list/offer panels and testing new lists incrementally in each successive mailing.

But even if you make a profit, there's not a lot of money in selling one thing one time (granting the usual exceptions). Especially not at typical "cold" list response rates of 2%, 1% and lower. You want to grow that customer list and market to it at significantly more profitable response rates of 5%, 10% and more (and at lower costs). But what will you market?

I often hear from folks who want to do a mailing, but have only one product to sell. If that's your case, direct mail may not be your best channel. If you can't upsell more costly versions of your product, or cross-sell upgrades, other products, training, support, or whatever...think it through carefully before you go into the mail. Even renting the list is going to require a marketing budget. .....  Good luck.