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