[Moneyformerchant]

Any feedback on conversions and costs for direct mail campaigns in the MCA biz?

[FCF Fund]

That's a very loaded question, some people swear by them and others curse them. Its all in the execution and the marketing strategy you employ i.e. target marketing or offering a niche product to the masses.

I personally do not like the fake check campaigns, too many a-holes call wondering why they couldnt cash their $250k check as if they just won the publishers clearing house contest lol. Better yet, I have had bank tellers call me wondering the same thing.

[ridextreme]

I rec'd a call from a detective saying a merchant took the check to the bank to try to cash it. I said "there are no account numbers on it." they just wanted to confirm it was a marketing stunt before releasing him from being questioned.

[jotucker1983]

As others have mentioned, your conversion rating is really going to be based on your marketing strategy. From a generic standpoint though:

- Try to get you a Bulk Permit to reduce down the mailing costs if you are sending a heavy volume.

- Try to follow up every piece of mail with a telephone call, using the mailing piece as an introduction.

[Rob Buchanan]

How about mailing to the business owner at his home address?

Oh and we are a one stop shop for all your direct mail needs. Oh and we are a one stop shop for all your direct mail needs. We do everything from designing the mail piece, supplying the targeted list of businesses and the deployment.

[Moneyformerchant]

Average CPA on a $10,000 mail spend Buchanan?

[Rob Buchanan]

Average CPA on a $10,000 mail spend Buchanan?

Give me a call to discuss.

[fisheMS]

all i can say is you will get calls from some interested people, they may be tough to close but isn't that the whole point? i'm sure if we did the roi the numbers stink but we have gotten a handful of longterm, dedicated clients out of it, and that pays off eventually.

[MCNetwork]

Mailers are rough for a small ISO with a limited budget. For larger operations, it's just one more marketing channel that they utilize.

[ridextreme]

I have gotten several deals funded through mailers, and most of them are new to MCA. Yes obviously they are a lot tougher to close, just like when I first started in this industry. There were no UCC's yet, so every deal had to be actually "Closed", not like today when they are only given the offer and they say yes or no.

So if you are not comfortable when you get one approved and they say "Are you crazy, 40% interest that's almost 100% APR are you a loan shark?", then mailers may not be for you.

Back in the day we had to actually sell this product, today we only have to offer it because they have been through it several times and they know what the product is. But mailers do work, as long as you are prepared to work a little harder to close them.

[mcaguru]

Direct mail works BTW Google sent me a mailer about a program..that's right Google does mail marketing!!!

[Lenders.Marketing]

Direct mail works BTW Google sent me a mailer about a program..that's right Google does mail marketing!!!

Google is a preferred mailing vendor of ours.

Feel free to reach out if you have any questions about how it works.

[malan@connect2cash.net]

I'm interested in mailers and trigger leads

Mark Alan
C2C
347-348-8020

[YuliyaG]

EDDM is relatively cheap when it comes to direct mailers. You can do both residential and business on the same postal route. On average there is about 20% home owners that own a business in the area.

Not sure what type of direct mail you are currently doing, but postcards are the best option to get noticed in the mail.

[glenf]

If anyone would like to discuss direct mail in further detail, please feel free to give me a call
631-447-9500
Glen Faulhaber
G-Plex Direct Mail
Established 1975

[Rob Buchanan]

EDDM is relatively cheap when it comes to direct mailers. You can do both residential and business on the same postal route. On average there is about 20% home owners that own a business in the area.

Not sure what type of direct mail you are currently doing, but postcards are the best option to get noticed in the mail.

I don't know that mailing to consumers is something MCA companies do unless they mail to the home address of a business owner. This is something we have a percentage on in our buisness database.

From my experiance working with the MCA industry and the direct mail serives we offer a fake looking check is a better option than a postcard.

[Rob Buchanan]

If anyone would like to discuss direct mail in further detail, please feel free to give me a call
631-447-9500
Glen Faulhaber
G-Plex Direct Mail
Established 1975

Glen... It looks like your website is down. I just got the following message when I went to it.

"Database connection error (2): Could not connect to MySQL."

[glenf]

correct web is www.gplexdirectmail.com

[FUNd]

We decided to open up our marketing budget last month after consulting with two of our top lenders with whom we have a very good relationship (funding >1 million/month). They both suggested the same direct mail provider, and while they both did their own direct mail in house, they suggested this one particular DM provider and said they did well with them in the past. Knowing the market has been and is changing rapidly by the month, we decided to drop 5 figures on a healthy DM campaign. The rate of return, meaning phone calls, not acquisition was supposed to be 0.5-1%. We balked when they told us that as it seemed high with the market saturation, but because it was a trusted referral, we moved ahead anyway.

30 days later, 27 calls from 30K mail pieces. Most of them unqualified and others rate shoppers. We did manage to close and fund a couple small 1.45's, but we are nowhere near the break even point. Anyone having similar low rate of return on DM lately? We don't know whether to go after the DM company or if this is just the market condition, but the rate of return seems suspiciously low.

[J.Celifarco]

We decided to open up our marketing budget last month after consulting with two of our top lenders with whom we have a very good relationship (funding >1 million/month). They both suggested the same direct mail provider, and while they both did their own direct mail in house, they suggested this one particular DM provider and said they did well with them in the past. Knowing the market has been and is changing rapidly by the month, we decided to drop 5 figures on a healthy DM campaign. The rate of return, meaning phone calls, not acquisition was supposed to be 0.5-1%. We balked when they told us that as it seemed high with the market saturation, but because it was a trusted referral, we moved ahead anyway.

30 days later, 27 calls from 30K mail pieces. Most of them unqualified and others rate shoppers. We did manage to close and fund a couple small 1.45's, but we are nowhere near the break even point. Anyone having similar low rate of return on DM lately? We don't know whether to go after the DM company or if this is just the market condition, but the rate of return seems suspiciously low.

this time of year definitely doesn't help by 27 calls for that much mail is impossibly low. Something is wrong

[Miller192]

Something is definitely wrong there. At a minimum, you should've gotten 150 calls.

[Regium]

Maybe a poorly designed mailer

[MCNetwork]

Could be a poorly designed mailer or a bad list. When I did a mailer, I would get around 20-25 calls for every 5000 pieces I mailed out.

[skideeppow]

We decided to open up our marketing budget last month after consulting with two of our top lenders with whom we have a very good relationship (funding >1 million/month). They both suggested the same direct mail provider, and while they both did their own direct mail in house, they suggested this one particular DM provider and said they did well with them in the past. Knowing the market has been and is changing rapidly by the month, we decided to drop 5 figures on a healthy DM campaign. The rate of return, meaning phone calls, not acquisition was supposed to be 0.5-1%. We balked when they told us that as it seemed high with the market saturation, but because it was a trusted referral, we moved ahead anyway.

30 days later, 27 calls from 30K mail pieces. Most of them unqualified and others rate shoppers. We did manage to close and fund a couple small 1.45's, but we are nowhere near the break even point. Anyone having similar low rate of return on DM lately? We don't know whether to go after the DM company or if this is just the market condition, but the rate of return seems suspiciously low.

It has to be the data you sent to. I have over a 1% response rate to my last mailer. I changed who i got the data from a while back and am really happy with them. 27 calls on 30,000 mailers is just terrible.

[FUNd]

Thank you so much for all the feedback. We are looking into what might be wrong now.