| There is a simple but almost mystical law | | | | month to current or past clients, and another |
| which governs promotion and marketing and | | | | 3-4,000 to prospective borrowers every week, |
| their relationship to the amount of business | | | | handling all the mailing in house. They use |
| generated: business will come in to the | | | | large (4 1/4" by 6") full-color, laminated |
| degree that you get your message out, | | | | postcards which look very attractive."We went |
| promote, let people know you are there, | | | | to postcards a few years ago because I got |
| advertise, write to people, call people, | | | | sick of doing the bulk mailings using |
| e-mail people and generally communicate to | | | | envelopes," Forest admits. Folding letters |
| existing or potential clients.It isn't a fact | | | | and sealing envelopes is pretty labor |
| that registers easily and it almost takes | | | | intensive. Postcards cost less and the mail |
| faith to follow this dictum until you have | | | | costs are lower.Forest attributes a full 20% |
| seen it work over and over in all sorts of | | | | of his business to the postcard mailings |
| different businesses and organizations (as I | | | | which account for the majority of their |
| have).This law transcends market conditions, | | | | spending on print advertising/promotion for |
| the activities of your competition, acts of | | | | the year. "Because of the magic formula that |
| terrorism, time of year, the alignment of | | | | business comes in in proportion to the |
| Mars with Jupiter and all the million and one | | | | postcards and other forms of promotion that |
| explanations we frequently fall back on when | | | | go out, we get results from all quarters," he |
| business is slow. All these conditions may be | | | | says.Outsourcing:The above example includes |
| present but there is still a way to rise | | | | networking with title companies and handling |
| above them: just promote more heavily and | | | | large mailings in house but this is something |
| frequently and business will start to pick up | | | | to work up to if you want to go that route. |
| again. It never fails.It's almost a natural | | | | Few mortgage brokers have an in-house |
| instinct when times get a little tight or | | | | marketing department and it can be |
| business is slow to cut down on expenditure. | | | | time-consuming and overwhelming to take on |
| You hear people talking about tightening | | | | all of these aspects of getting postcards |
| their belts. Too often the first expenditure | | | | mailed out using existing personnel who are |
| companies seek to cut is their marketing and | | | | already busy dealing with loans and |
| advertising dollar, and that is a serious | | | | paperwork.A good postcard company can handle |
| error, a guarantee of contraction. You have | | | | the entire mailing and save you money in the |
| to step up the promotion, not cut back. The | | | | process. They make their money from printing |
| trick is to find ways to get the maximum | | | | postcards, not from consulting, selling |
| results with the minimum expenditure, but | | | | mailing lists, mailing and so on. So they can |
| never to cut back and promote less. That's | | | | give you better deals on these other services |
| suicide. Here's one way to increase promotion | | | | where needed.Having the postcard company do |
| while keeping costs down.You don't have to | | | | the mailing from you has an additional |
| open a postcard!We have found more and more | | | | benefit of saving on shipping. Printed matter |
| brokers are turning to high quality, | | | | is quite heavy and shipping 10,000 postcards |
| four-color postcards as the best form of | | | | across country is not that cheap. If it is |
| direct mail. It's time to pass on the | | | | mailed from the postcard company direct these |
| information for those who haven't yet | | | | shipping charges are avoided.Sharp Mortgages |
| discovered this cost-effective way of getting | | | | Inc. of Jacksonville started using postcards |
| the word out and the business in.This is | | | | in 2001, having used every other form of |
| especially timely advice as the national | | | | advertising and promotion. They sent out two |
| anthrax scare - whether you give credence to | | | | initial mailings of 10,000 postcards each and |
| it or not - has resulted in a certain caution | | | | have ordered another 50,000 so it must be |
| when it comes to opening envelopes from | | | | working. "We let the postcard company handle |
| unknown sources. One great advantage of the | | | | the mailing," says Bill Sharp Snr. who |
| postcard is that it doesn't have to be opened | | | | handles their advertising. "With all the |
| - there is nothing hidden about it and | | | | other things we have to do, we find that it's |
| nothing to be scared of.Quite aside from the | | | | easier to let them handle the mailing than to |
| anthrax angle, the fact that a postcard | | | | tie up our time in here."Don't be put off by |
| doesn't need to be opened has another | | | | the thought of all the extra work involved |
| advantage: it has a chance to get its message | | | | for your already too busy personnel. In the |
| across before it is dropped into the garbage | | | | long run it might save you a lot of money to |
| can as "junk mail." An envelope can be tossed | | | | pay a little extra for the postcard company |
| in the trash without even being opened, | | | | to take the entire process off your hands |
| allowing the hard-hitting promotional | | | | from design and print through to mailing.How |
| material inside no chance at all to get its | | | | to get going with postcards.So, assuming |
| message across.The chances are fairly high | | | | postcards are the way to go, where do you |
| that if you have a brightly colored image on | | | | start?A. Find a postcard company to help |
| the front of your postcard it will attract | | | | you.This company must:1. SPECIALIZE IN |
| enough attention to get an initial glance. If | | | | POSTCARDS, not just do postcards among other |
| your headline is a good one and invites | | | | printing jobs. You will get better service |
| further interest, then your postcard will be | | | | and a better product. It will cost much less |
| read and you will have succeeded in | | | | because they are printing your postcard along |
| delivering your message. If the reader is | | | | with many other customers' postcards and can |
| even vaguely interested in what you are | | | | "gang print" them which means they print many |
| trying to sell, you may well get a visit or a | | | | different postcards on one large sheet of |
| call.Cost-effective!Even though it is | | | | card and it's only one press run.2. Have some |
| imperative to promote more than ever when the | | | | MARKETING KNOWLEDGE AND EXPERIENCE. They |
| economy is sticky or business is slow, that | | | | should be able to advise you on mailing |
| doesn't mean you can't cut costs in the | | | | lists, design, quantities and so on. The |
| process.Many brokers are convinced that a | | | | better ones offer a full range of services |
| full-color postcard with the right message on | | | | from advice through design, assistance with |
| it, mailed out to previous clients (for | | | | photography, printing and mailing.3. |
| re-financing for example) or to prospective | | | | Postcards they produce should be UV COATED |
| borrowers gets the most bang for the | | | | (laminated), FULL COLOR, 4 1/4" x 6" so you |
| advertising buck of any form of promotion, | | | | get the biggest size card you can for the |
| even when they also advertise in print, on | | | | lowest mail rate and they really look good. |
| the radio and TV, sky-writing, you name | | | | The UV coating is essential for a very high |
| it.You can mail out a postcard up to 4 1/4 | | | | gloss finish that really makes the postcard |
| inches by 6 inches for between 17.5¢ and | | | | stand out and attract attention.4. Above all |
| 19.5¢ first class pre-sorted. This is | | | | you need to know that you are going to get |
| cheaper than the lowest letter rate which is | | | | RESULTS. Percentage of response is not the |
| 19¢ - 24¢ and that's for standard, bulk | | | | real measure of success as this varies from |
| rate, not first class. If you find the right | | | | industry to industry and area to area. What |
| company you can get 5,000 high quality, | | | | you want to determine is return on |
| full-color, laminated postcards printed for | | | | investment. If you spend $2,500 all inclusive |
| under $400.Warren Financial Corporation of | | | | to send out a 10,000 postcard mailing and get |
| Dunedin, Florida, is an example of a company | | | | 200 calls as a result, and convert even 10 of |
| who rely entirely on postcards (and | | | | those into mortgage purchases, then the |
| referrals) for new business. "The strange | | | | mailing was a terrific investment. So you |
| thing about postcards is that I'll have | | | | need to look at the big picture and check for |
| people who will call me 6 or 8 months after I | | | | results in terms of return on investment.When |
| mailed them out and say, 'I got one of your | | | | choosing a postcard company to handle your |
| postcards and kept it.'," says Jim Warren, | | | | mailing, it's a good idea to get some names |
| the company's owner. He buys 6,000 postcards | | | | and phone numbers of their customers and call |
| at a time and sends out 400 every month to | | | | them up to get some first hand information on |
| highly targeted mailing lists. He leaves the | | | | how good the company is: do they deliver good |
| back of the cards blank so that he can get a | | | | service and value for money?Once you have |
| different message printed on them when he's | | | | found the right provider (it doesn't have to |
| ready to send them. This allows for rate | | | | be local - the better ones work on a national |
| changes and other time-sensitive messages to | | | | basis and do business with companies all over |
| be printed on at the time the postcards are | | | | the USA) get their advice on producing the |
| going to be mailed.He used to use very basic, | | | | postcard. They will help you with all the |
| black and white postcards run off by his | | | | steps.B. Decide whether you want them to |
| local printer but has now gone to full-color, | | | | handle the mailing for you (see section above |
| 4 1/4" x 6" cards (the largest size you can | | | | on outsourcing).C. Decide whether you are |
| send at the lowest mail rate) which has | | | | going to mail to your existing customers or |
| improved his response rate. "I have a rifle | | | | to mailing lists of potential customers or |
| rather than a shotgun approach to marketing," | | | | both.Procurement of mailing lists an |
| he says. "For what I do the four-color | | | | important point. Sending out postcards to |
| postcards are perfect."A case in point...Sun | | | | 10,000 random homeowners by zip code is not |
| Pacific Mortgage of Santa Rosa, California | | | | going to get the same response as sending |
| have been in business for 14 years, | | | | 10,000 postcards to qualified homeowners of |
| specializing in giving loans to people who | | | | the type that you specialize in |
| have been turned down elsewhere. Owner Forest | | | | (conventional, subprime, refinances, etc.). |
| Tardibuono came across some management | | | | You can buy mailing lists that are quite |
| technology in 1997 and since then their | | | | specific. Your biggest expense is going to be |
| income has increased by 900% and is still on | | | | postage. It's worth spending a little extra |
| the rise. One of the principles that Forest | | | | money to make sure your message gets to |
| learned and really put into practice was the | | | | qualified potential mortgage purchasers in |
| fact that if you want more business or new | | | | the category that you want to deal with.The |
| business, you have to promote. "We're one big | | | | postcard company should be able to help you |
| marketing machine," he says. "We promote | | | | with the choice and purchase of mailing |
| heavily and it's then an easy job for the | | | | lists.D. Decide on the content of the card. |
| loan reps to pick up the loans. The sale is | | | | Again, a good postcard company will have |
| easy." The company spends 14% of its gross on | | | | experience with this and can offer valuable |
| promotion. With an annual income of close to | | | | advice. They've probably worked with other |
| $2 million, that's a sizable budget for | | | | mortgage brokers and know what works and what |
| promotion. But it is also a major factor in | | | | doesn't.E. Get the card produced. They will |
| their continued growth.Sun Pacific order | | | | send you proofs. Get any needed corrections |
| 50-60,000 postcards at a time with a | | | | made so that you are happy with them.F. Get |
| selection of several different images on the | | | | them mailed out.G. Sit back and make the most |
| cards. They have an arrangement with local | | | | of the response.H. Plan your next mailing and |
| title companies whereby these provide Sun | | | | repeat the steps.After you've done a few |
| Pacific with mailing lists already printed in | | | | mailings you will get a better idea of what |
| mailing label form at no cost as an incentive | | | | works and you can refine your campaign.This |
| for the mortgage company to use them for | | | | is a proven, tried and tested, workable |
| title work. They provide these labels as | | | | approach to increasing sales through direct |
| often as needed and targeted as narrowly and | | | | mail using color postcards.Joy Gendusa |
| specifically as required. For example, Forest | | | | founded PostcardMania in 1998; her only |
| will ask for homeowners of a specific zip | | | | assets a computer and a phone. In 2004 the |
| code (one that has proven profitable in the | | | | company did close to $9 million in sales and |
| past) and will limit the search to specific | | | | employs over 60 persons. She attributes her |
| categories to make sure that the mailing hits | | | | explosive growth to her ability to choose |
| home. Getting the mailing labels free of a | | | | incredible staff and her innate marketing |
| charge represents a considerable saving.Then | | | | savvy. Now she's sharing her marketing |
| Sun Pacific will send out mailings of a | | | | secrets with others. |
| couple of thousand postcards once or twice a | | | | |