I have been selling Bob Ross cards in So. Cal. for a few months. I like Don's idea MUCH better for a couple of reasons.
1. The success for his cards is somewhat area-sensitive. For example, he sells ads at a price that gives him $5000 profit per card. In my area, there are a LOT of avenues for the advertising dollar so getting a company to pay $500 or more for a one-shot mailing is a struggle. The last few advertisers are going to get a discount just so you can get the card out.
2. Again, it depends on your area. If consumers in a given area are bombarded by independent advertising the response for your customers will not be anything phenomenal.
3. This gets you back to square one, calling on a lot of customers to sell a $500 ad. That is a lot of work for the profit you can make on a card. We never came near $5000 profit.
In some areas I have lived it would be a phenomenal fit because there is hardly any advertising other than the newspaper, nickel papers and a couple of senior publications. In those areas it would most likely be a goldmine because you would be the only game in town.
The $1,000 limit makes a lot of sense. BTW, the raw cost for mailing, printing etc. is right around $3,000.
Not saying it is a bad idea because it is actually very good. I would just pick my area a little more carefully.
Quote:
Originally Posted by Adman
Bob Ross has conjured up a whole lot of interest in......in....in a "Direct Sales" project on a Forum where most of the viewers have never sold anything in their lives....especially Advertising!
UNbelievable! Who wouda known.
My problem with a "Direct Mail" project like this, besides the inexperience of those folks getting involved (Maybe it's the "supposed"...."hoped for"...$5,000 Profit being hung out like a carrot).....is;
The cost is around $2,500 for 10,000 Cards to be Designed, Printed and Mailed. I've been in the Direct Sales biz for a long time and I NEVER start a project that going to cost me OVER $1,000! Because....if I don't get enough paying clients....I have to refund the money they paid.
One of my Ad Projects is a 8 1/2 by 11 Fridge Magnet (it has "Important Phone Numbers at the top....a 12 mo Calendar and 4 Columns wide by 6 Rows down for a total of 24 Ad Spaces)
These Mags cost me $2 ea to be printed and mailed. I print and mail 150/mo.
Guess to whom I mail these Informative Fridge Mags (with 3 Reasons to keep them ON the fridge).....New Movers! People who have moved recently.
And....guess what kind of Advertisers I start contacting? "New Businesses" I get from my City Hall and County Courthouse.
I commit my advertisers to 3 months.....150 mailed each month. I print up 450 magnets. My cost is $2 x 450 = $900.
I charge $150 one-time set up and $450 (3 mos in advance) for a total of $600!....to have an EXCLUSIVE AD on the Refrigerators of 450 New Movers for th next 12 months!
$600 x 20 = $12,000 less $900
Don Alm....Sales Guy
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