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HOW MUCH TO SPEND ON

POSTCARD MARKETINGReally

Trying to figure out the RIGHT amount to spend on a postcard marketing campaign is a daunting task. First thing, there’s a lot of math that goes into it. And second, where do you even start? Who’s got the time? Am I right?

With this in mind, here’s simple worksheet to take the guesswork out of it. Simply follow the instructions, do a little simple math, and get the perfect marketing budget for your business!

Phase OneFirst, a little arithmetic…

A. Current Monthly Gross Revenue:

B. Targeted Monthly Gross Revenue:

C. Gap Between Current and Targeted Revenue:

This gap is the amount you need to bring in with your new direct mail campaign. Now, let’s find out what it will take to do just that.

Phase TwoWell done. Now, do a test campaign of 5,000 postcards, track the results, and answer the questions below.

D. How many sales did the campaign produce?

E. How much gross revenue was produced?

F. What was the average sale? (Divide Step E by D)

Phase ThreeOk, bear with the math here. It’s important…

G. You need (Divide Step C by F) sales to reach your target revenue.

H. It takes (5,000/Step D) postcards to get 1 sale.

I. So, you need to mail (Multiply Step G x H) postcards.

Phase FourNow let’s approximate the cost of your new marketing strategy (and this should be a long-term monthly approach, not a whenever-we’re-hitting-a-slow-period approach), and add it to your old marketing…

J. The cost of your monthly postcard mailing is (Step I x .3)

K. Your new marketing budget is per month (Step J + Old Budget)

Phase FiveFinally, let’s figure out how your new budget relates to your revenue, so you can scale your marketing as you grow!

L. Your new marketing budget is of your gross revenue. (Step A divided by Step K)

This is the percentage of your monthly gross income that you need to spend on marketing each month, so you can keep growing… while you’re growing!

If you have any questions about the math (or anything else), don’t hesitate to give us a ring (on the phone)! We’re here to help!

1-800-628-1804