Gary Halbert · whole document (52)
azdedislei specialreport
But dammit, no matter how inefficiently you did it…
You Got There!
And those other guys? The ones canoeing super efficiently up the Mississippi. They can be as efficient as humanly possible but, they will NEVER get to Marrieta, Ohio.
Let's say you email 10 million people using the Internet. Say your selling a pill that will enlarge a man's penis. You know how many sales you will get? You'll be lucky if you get even three. But hey, since emailing three million people costs almost nothing (just for the sake of argument, let's pretend it did cost ABSOLUTEY NOTHING… well then…let's say you make 60 dollars profit on every bottle of …penis pills… you sell, since you sold 3 bottles (very efficiently)…
You Made $180.00
Hot damn! This is exciting, ain't it?
Now, let's switch to direct mail. We can't mail all 10 million at the same time because it costs (roughly).70 cents to mail a sales letter in the U.S. and, to mail 10 million letters, it would cost $700,000, right?
WRONG!
See, here's what you do? You start with a mailing of 1000 letters which cost you $700.00½and …let's say you get a 2% response. By the way, that's very realistic if you select your mailing lists carefully.
Anyway, a 2% response is 20 orders per thousand letters mailed. And since your net profit is $60.00 per bottle, that's $1,200. So, you take that entire $1,200 and use it to mail more letters. Which yields another 2% response or 32 orders…which equals…$1,920 dollars in net profit…which …you use to mail out even more letters which brings in another 2% or $2,400 in profit which you use to mail about more and more letters which brings in $5,400 in profit which you use to mail more, more and more letters and the profit those letters bring in is used to mail…