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Wednesday, August 30, 2006

What Are the Marketing Benefits of Direct Mail Campaigns vs. Relationship Marketing?

Direct mail campaigns are typically what network consultants first think of when they start developing marketing strategies. However, direct mail campaigns are not necessarily the best way to advertise when you are just starting your business.


In order to conduct a direct mail campaign, you will probably need postcards. Most likely, to get 100 people’s attention in a matter of minutes, you will have to mail out way more postcards than 100. A much easier way to get a large number of people’s attention is to sit on a panel for a Chamber of Commerce event with 100 people in it or some other form of relationship marketing that involves speaking to a captive audience.

A pretty good response percentage to expect for a direct mail campaign is 1%, which is still high unless you provide a really good incentive or hire an expensive ad copywriter. Mailing 10,000 postcards will cost you at least $5,000 and will garner you at most 100 leads. Of these leads, only about 1-2% will turn into clients. Building relationships with 1% of the people your direct mail campaign reaches through relationship marketing activities will get a higher response and not cost you $5,000.

Direct campaigns paint you as a stranger with, at best, a really good sounding deal but no trust. Relationship marketing guarantees a personal connection and that you are not intruding.

Though direct mail campaigns are the most-used techniques for marketing among network consultants, they are not the ideal choice. They are impersonal, expensive and do not have the success rate or personal touch of relationship marketing.

Blogged By: Joshua Feinberg