2005 - 10-27-05

Try and understand this: The "game" (if you will) of direct marketing is all about psychology and arithmetic. If you understand human psychology (TRULY understand it) and you understand arithmetic... you will make a box car full of fungolas.

If you do not understand these two important elements of direct marketing, you will just limp along making survival money or perhaps no money whatsoever.

End of digression.

Let's get to the second (and last) primary reason people do not use the 30-day hold. It is because they are not well funded.

I'm going to ask you a question and I bet very few of you get the answer right.

You're all aware of the sales letter I wrote of which 600 million were mailed, right? Let's say you wrote a letter today just as strong as the one I wrote lo those many years ago... and... you could mail 600 million of them. Let us say those letters would cost you 70¢ apiece to mail. Here's the question:

How Much Would It Cost You

To Mail Those 600 Million Letters?

Well, let's see: At 70¢ per letter it would seem it would cost you to mail all 600 million letters a grand total of $4.2 million.

Right?

WRONG!

It would cost you approximately only $3,500 to mail all 600 million of those letters. Here's why: You would use your $3,500 to mail 5,000 letters and as the money started coming back from your orders every day, you would "re-invest" the proceeds of that day to mail more letters. In other words, you would be mailing more and more letters every day and soon, you would be compounding your mailings with the speed of light. It wouldn't be long until you would be mailing more letters than your infrastructure could handle.