Monthly Mailer Coop Advertising Program

by BUFFALOBT

Posted: 13 years ago 21 replies

OFFLINE MARKETING

Hello all and Happy New Year! Long time forum reader and first time poster here.

I wanted to share this start up to get your feedback and find out if anyone might be interested in partnering up in their area.

We started a monthly coop mailer that goes out to 5,000 single family homes each month targeting a specific neighborhood or community. There are only 14-18 ads in each edition, with no business overlap in a newsletter format. So only one plumber...one bug guy...etc.

Small local businesses love it- because it lets them target specific neighborhoods in their own backyard, and offers exclusivity.

This is a great niche alongside programs like Money Mailer and Valpak who have up to 50 ads at a time with lots of overlap.

We distribute very simple black and white flyers to local businesses, and wait for the calls to come in.

Anyway- I wanted to get your feedback on what you think of this business model, and let you know that we are expanding across the country, with an opportunity to partner up with territory managers to market multiple editions in their area.

We do everything...design,production,printing and mailing...your only job is to sign up the businesses.

The income opportunity is unlimited, and the opportunity to help build this from the ground up can be very rewarding.

Please let me know your comments, and if you are interested in learning more about a partnership.

Thanks!

#advertising #coop #mailer #monthly #program

BUFFALOBT 13 years ago

My apologies...this got posted twice!
- Thanks
- 1 reply
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- TyBrown 13 years ago
  
  I think the idea sounds good. Do you charge a premium to the advertisers due to exclusivity?
  
  Thanks
  
  1 reply
  
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  Online Dog Training
  Salt Lake City, Utah Dog Training
  
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  BUFFALOBT 13 years ago
  
  Prices start at $265 for an inside ad and go to $750 for the front cover. We offer discounts for businesses that advertise in multiple editions in their area. Businesses LOVE the exclusivity!
  
  $750 for a full size front cover ad that goes to 5,000 homes is a bargain compared to what they would spend to send their own postcard.
  
  Our pricing at this point has been very well received...thanks for the reply!
  
  Thanks
  
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  TyBrown 13 years ago
  
  Sounds like good pricing for the advertiser. I know nothing about direct mail but it sounds like there's not much room for profit. If I'm doing my math correctly it seems like, with 14-18 ads, you'd have something like 5 or 6k of revenue. That works out to a buck or so per piece. By the time you have design, postage, printing, and sales, is there any room left for profit?
  
  Thanks
  
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  Online Dog Training
  Salt Lake City, Utah Dog Training
  
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  BUFFALOBT 13 years ago
  
  That is what is so amazing about this business model!
  
  So far we've sold out 2 editions in Florida. One grossed $4875...the other with a few more ads at $5675.
  
  The key to this business is on the printing/production side. My partner is in the printing business, and has lined up a trade printer with excellent pricing.
  
  So get this...our net on the first one will be ~$2700...net on the second one is ~$3900. Our net will vary with each edition, based on location, discounting, and commissions paid for sales partners. But- there is enough net to go around to offer a very strong ongoing monthly income.
  
  Think about all of the neighborhoods and communities in your area. You do some planning and divide it up into 5,000 home "zones". Then- you do your marketing and promote up to 4 zones at a time- giving local businesses the choice and opportunity to reach a wider audience. You get a handful of these up and running each month, and you can make some really good money.
  
  The other key is someone on the ground to do the selling- that's why we are looking for folks interested in running with this in their area- as a home based business opportunity and a potential long-term partnership as we expand nationwide. Very exciting stuff!
  
  Thanks
  
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vndnbrgj

13 years ago

This sounds like it costs more than the ValPak does.
I do understand the exclusiveness.
But, what kind of open and redemption rates are you getting?
(I understand that the redemption rate will vary depending on the business, price of services, ad copy, etc.)
People are familiar with the ValPak. They know that there will be several discount coupons in there for multiple services.
Plus, they reach a larger audience.

Thanks
1 reply

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BUFFALOBT

13 years ago

The front and back covers do cost more than Valpak. The interesting thing about our smaller, exclusive format is that small local businesses have tried the Valpaks and Yellow Pages of the world- with varying results.

Our goal is to add value, and not to be the lowest priced option..."Price is only an issue in the absence of value".

Our first 2 are set to go out in 2 weeks...I'll be able to update you on redemption/open rates then.

What most surprised me was that we filled 2 editions in about 2 weeks- with some discounting but not much. We also had 7 businesses advertise in both.

This tells me that there is demand in the marketplace for an ALTERNATIVE to the Valpaks and other "shotgun" marketing methods(lots of ads, lots of overlap, sent to more people). We wouldn't have had such a strong response if these other programs delivered.

In regards to your comment about the familiarity of Valpak...that can also be a negative, as I personally chuck mine as soon as I get it. Correct that- I now save all of them and market our mailer to those advertisers.

Thanks so much for your comments and feedback- Happy New Year!

Thanks
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vndnbrgj

13 years ago

Originally Posted by BUFFALOBT

In regards to your comment about the familiarity of Valpak...that can also be a negative, as I personally chuck mine as soon as I get it. Correct that- I now save all of them and market our mailer to those advertisers.

LOL! I keep them too. The businesses marketing in them have a marketing budget and are actively trying to get new customers!

Thanks
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- Neale Donald Wilson -

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BUFFALOBT 13 years ago

Thanks for reading my post and your feedback- I appreciate it!

I'm trying to figure out if there is somewhere on this forum where I can find people interested in helping me to find Sales Partners anywhere in the US online.

In other words- we have this program which is offline, but looking for people who want to partner to sell this in their community. So I'm looking for some sort of online solution to reach out to interested people and build the team.

I hope that makes sense- thanks again for your help.
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- Steve Solem 13 years ago
  
  Hi uh, "buffalo" is it?
  
  I'd be interested in learning more, especially if there's as much profit in this as you mentioned.
  
  You mentioned the flyers you pass out are B&W, but I'm assuming your mailers are full color? Do you have any sample images or pdfs of a completed publication?
  
  What kind of response are you seeing to your flyers to sign up businesses?
  
  PM me with some details if you can or email me at admin (at) ravedesigns dot com
  
  Steve
  
  Thanks
  
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  Need Offline Leads? Get them more easily with two great Lead Gen reports and 65 pages of quality PLR PLUS flyers, postcards and other marketing materials. Starting at under $5!
  
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Creativegirl 13 years ago

Good for you. Yes, it is a proven business model. Some communities can support it better than others. Price point is a factor, follow through on distribution and then of course you and the ROI will give you repeat advertisers. What I suggest is adding more value by integrating online promotion too.
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- myob 13 years ago
  
  Finding offline sales reps can be done through Craigslist as well. Post in the "jobs" section, though under sales reps. I get very good response, and you can post nationwide for only $25 per major city.
  
  Do you target Spanish businesses and communities? That is a huge and largely untapped market.
  
  Thanks
  
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  BUFFALOBT 13 years ago
  
  Thanks Creative and myob...appreciate the feedback!!
  
  Thanks
  
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shivon 13 years ago

Hello Buffalobt i am interested in this opportunity. Please send more information to
andrewsshivon (at)gmail.com
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- BUFFALOBT 13 years ago
  
  Thanks Andrew- just sent you an email.
  
  Thanks
  
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BUFFALOBT

13 years ago

Does anyone have any suggestions on how I can find sales people? Our guy in Florida is tearing it up and selling out editions left and right! So I need to find other people just like him who want to make $1,000 per edition anywhere in the US.

I know there are people out there who would LOVE this opportunity...I just need to find them.

Thanks for any help you can lend!

Thanks
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joshril

13 years ago

Originally Posted by BUFFALOBT

I did an entire course on recruiting sales reps... There's a link to get access to the first full module of the course for free in my signature.

Thanks,

Joshua

Thanks
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BUFFALOBT 13 years ago

Thanks Joshua!
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myob

13 years ago

Originally Posted by BUFFALOBT

I advertise heavily in USA Today for getting professional sales people. These people start from the ground running. It is very expensive, but in my business the ROI is within weeks.

Thanks
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BUFFALOBT 13 years ago

Thanks fellas...appreciate the input. And that's what we need...people that aren't afraid to hit the pavement and knock on doors.
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MichaelHiles 13 years ago

Co-ops can work extremely well. Valpak is indeed a massive business. In 1999, I merged my web development company with the single largest Valpak franchise holder (30 major markets) in the USA and operated it as the head of thier web division for a couple years afterwards. I worked directly with Cox and many other major media companies for all kinds of combined web/direct mail/print response marketing campaigns.

We did/do an average 600,000,000 direct mail pieces a year. They're a massive company and own a giant printing capacity (one of the bankrupt companies that printed TV Guides).

It is indeed a viable business that literally comes down to hoofing it on the sidewalk, selling the deals to small business owners. That's how the guys who started the company got going in the 1970s - selling monthly co-op pieces door-to-door. They grew and parlayed their success into all the Valpak franchises and other major direct print marketing properties.
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Monthly Mailer Coop Advertising Program

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