My unique direct marketing technique...

18 replies
ok, in 400+ posts, I think I've only started a small handful of threads, and never one that actually contributed anything useful.

So I am going to fix that right here, right now.

One of the businesses I own helps creditors and debt collectors avoid the risk of being sued. It is sort of like insurance. If you use my service, you can identify risky customers before they are in a position to sue you and cost you a lot of money and grief.

You see, there is a small subgroup of society that sues these companies for fun and sport. The way U.S. credit laws are written, the consumer has every advantage. For those who understand their rights and how these laws work, it can be a lucrative hobby to fall into debt and then sue your way out.

Yes, this is the dictionary definition of a micro-niche. At most, there are probably no more than 2k-3k businesses out there that would be a good prospect for me.

Selling something that *might* help you avoid future pain is not always easy. As anyone who understands sales will tell you, it is much easier to sell something that soothes a current problem than something that could possibly prevent a future problem.

So, how do I present my product to those businesses that would benefit most, at the time they are most receptive?

Here is how.

Every month, I look at the lawsuits that have been filed against creditors and debt collectors. I look at the consumers who have filed them. I determine who among those consumers have filed other similar lawsuits before, how many times, and against whom.

I then separate those cases out, and merge all of that data into a direct mail piece to every company that has just been sued by a serial litigant. In the envelope's address window, "unintentionally" visible above the address, is that consumer's name, in the line "Joe Consumer has sued "x" number of companies before...":

The company that receives this mail, with the name of their current legal adversary peeking out of the address window, cannot help but open this mail and see what it is about.

Inside is a well-written pitch for my services. At the end is a list of all of the lawsuits this consumer has filed against other similar companies in the past. The message I have just delivered to them in the letter is that, had they been using my service, they would have known this consumer's history before they contacted him, and before opening themselves up to this potential (and preventable) liability.

Effective? You bet your ass it is.

I share this to inspire creativity. I doubt many people here will have a direct application for exactly this type of mailing, but if you think about how you can better use existing data to target and motivate your market, there are all sorts of ways to improve the effectiveness and appeal of your marketing.

Opportunity is all around us. Learning to identify it and grab it is an acquired skill. I prefer to play in uncrowded marketplaces where, with some creativity, I can dominate in a short period of time.
#direct #marketing #technique #unique
  • Profile picture of the author Underground
    As a debut 'dropping pearls of wisdom post' that post will take some beating. Such an obvious change to make when you see it pointed out, yet very few people would think to do this. Combining personalization with a major current problem the business has in the way you've done it is genius. I love when people come up with creative ways like that that go against the ingrained wisdom on the subject.

    I'd say as a grabber to pull them in, that little trick of accidentally dropping their nemesis' name in there is one of the best you could get save for making a wad of $100's visible. Plus it shifts the emphasis away from a promotional direct mail piece to a completely different dynamic where you are instantly positioned as an expert who can immediate help them like no-one else can.

    I was hesitant to spend on direct mail with my current budget on the traditional grabber route just because I know anything promotional (no matter how good) turns most people off, but after reading this, I know their must be a tipping point like that in my market and I'd be a fool not invest in this kind of strategy when I find that tipping point.

    Thanks for the great info.
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  • Profile picture of the author internetmarketer1
    This is such a great thread for those who are willing to go this route. Of course, it is just one way, but this is such a detailed thread. Great way to cpa off 400+ posts.
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  • Profile picture of the author Jack Gordon
    btw, I have used this strategy on and off for 5 years now, sometimes generating hundreds of letters per month. I haven't done a good job of tracking which clients come in off the letter vs. other marketing initiatives, but this method is certainly one that gets me a lot of positive feedback.

    I have had now-clients tell me they got my letter before they even knew they were being sued. That makes a hell of an impression.

    *** If there is more interest, I'll share the single strategy I used to go from being a nobody to becoming the most credible expert voice on consumer litigation in my industry... almost overnight.
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    • Profile picture of the author AmericanMuscleTA
      Originally Posted by Jack Gordon View Post

      I have had now-clients tell me they got my letter before they even knew they were being sued. That makes a hell of an impression.
      They must think you're psychic!! Haha

      You're definitely thinking outside the box.
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      www.DukeOfMarketing.com
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    • Profile picture of the author Underground
      Originally Posted by Jack Gordon View Post

      btw, I have used this strategy on and off for 5 years now, sometimes generating hundreds of letters per month. I haven't done a good job of tracking which clients come in off the letter vs. other marketing initiatives, but this method is certainly one that gets me a lot of positive feedback.

      I have had now-clients tell me they got my letter before they even knew they were being sued. That makes a hell of an impression.

      *** If there is more interest, I'll share the single strategy I used to go from being a nobody to becoming the most credible expert voice on consumer litigation in my industry... almost overnight.
      Definite interest here in hearing about that, and I'm sure I'm not the only. Not surprised to hear about all the positive feedback and how you've dominated your market with an approach like this.

      I've seen some experienced copywriters selling courses and direct mail sales letters who have been in the game for years, and they do not seem to have learnt that an approach like yours is far superior to the the purely promotional sales letter approach that just gives a nice benefit-laden or problem/solution headline, clever wordplay in the lead, benefits and solutions, scarcity and call to action. Yes, it gets results sometimes but way to inefficiently.

      There is no reflexive 'sales/promotional' shield to try to penetrate when you send people personalized info in the way you have, which there is with the kind of direct mail most people teach you to send.

      I remember reading in Guerilla Marketing about how Guerilla Marketers could send out 100 letters and expect a 20-30 response or more maybe, or something along those lines. And this is a perfect example of that kind of Marketing.

      If you sent out a few hundred a month, how many new clients would you generate on average from that?
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  • Profile picture of the author Jack Gordon
    How I came to be THE authoritative voice of the consumer litigation environment in the credit and collection industry, practically overnight...

    So, here I was. I had started this business where I aggregated litigation data, and sold access to that data to businesses who were interested in it.

    I possessed the historical data (how that came to be is another post for another day... suffice to say it involved grabbing opportunities as they came, and a serious case of carpal tunnel syndrome). I had developed methods to continue getting new litigation data as it came in (I needed that, as the value of my service depended on the timeliness of the data). But I had just a handful of companies paying me a very low subscription fee to access it.

    The thing is, I started this business out of my basement. I was practically unknown (though I was in the collection business for a few years prior, I was a nobody). I knew there was an opportunity here, because I had witnessed the explosion of consumer litigation in the immediate past, and I knew there were few, if any, resources out there currently addressing it.

    I had zero connections, zero credibility, zero resources and zero backup plans. I had to make this business work. I needed some credibility, and fast.

    About 6 months in, I had an epiphany.

    As I mentioned, I owned the data. It occurred to me that there was a strong interest in the industry for this data, even if they didn't yet realize that they should be paying me for it. So I had to whet their appetites.

    How to do that?

    I decided to create a summary of all new litigation from the prior month. How many lawsuits were filed, how many companies were sued, how many plaintiffs were repeat litigants, who the most active attorneys were, etc. I then published this summarized data in the form of a press release, and emailed it to all of the industry's niche media outlets.

    Nobody had ever seen anything like this before.

    My statistics were published, my name got out there, and suddenly the phone began to ring. I did it again the next month, and the month after that. My statistics became a monthly fixture in essentially all industry newsletters and magazines. I started a newsletter offering the first opportunity to see my monthly statistics to my subscribers, a day before they were released to the media. My list grew quickly (and still is growing)

    Pretty soon, all of the major industry trade associations began reaching out to me. They were interested in having a relationship, as they saw great value in the statistics I was publishing and the underlying data behind them.

    Media - both industry and mass media - started calling me for interviews. In addition to every industry magazine, I have been quoted in the New York Times, Fox Business Channel, The Denver Post, The Minneapolis Star Tribune, The Miami Herald, The Dallas Observer, The Pittsburgh Tribune Review, credit.com and creditcards.com, and others.

    Then, the conferences began inquiring to see if I would be interested in having them fly me out and put me up in exchange for being a speaker at their events. They were interested in what I had to say, and my drawing power as the man behind the numbers. In the last few years I have had about 20 speaking gigs that took me all over the country, mostly on my host's tab.

    Are you getting the picture? It all started with one idea - to do something with all of this data I was sitting on anyway - and when that worked it began to snowball. The credibility I have attained in this industry is priceless.

    These statistics are nothing more than a byproduct of my actual business. Directly, I have not made a penny from them. Big picture, however, they are responsible for making me into a powerhouse.
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    • Profile picture of the author Ron Lafuddy
      Fascinating and thank you for posting.

      You've got my wheels turning regarding a pet project.

      Time to do some testing.
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      • Profile picture of the author Jack Gordon
        Originally Posted by Ron Lafuddy View Post

        You've got my wheels turning regarding a pet project.
        Exactly what I was going for.

        Five years from now, when it is a big success, I hope you will come back and share some of your secrets.
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        • Profile picture of the author Chriswrighto
          Good post, Jack.

          It's a great example of timing of your message.

          A prospect who signs up today, may not have signed up 10 weeks again (had they got your letter.)

          Frankly, this is a technique EVERYONE selling something should do.

          Find the time when your prospect is most hurt, or in need of a solution... then strike.

          Signature

          Wealthcopywriter.com :)

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    • Profile picture of the author Underground
      Originally Posted by Jack Gordon View Post

      How I came to be THE authoritative voice of the consumer litigation environment in the credit and collection industry, practically overnight...

      So, here I was. I had started this business where I aggregated litigation data, and sold access to that data to businesses who were interested in it.

      I possessed the historical data (how that came to be is another post for another day... suffice to say it involved grabbing opportunities as they came, and a serious case of carpal tunnel syndrome). I had developed methods to continue getting new litigation data as it came in (I needed that, as the value of my service depended on the timeliness of the data). But I had just a handful of companies paying me a very low subscription fee to access it.

      The thing is, I started this business out of my basement. I was practically unknown (though I was in the collection business for a few years prior, I was a nobody). I knew there was an opportunity here, because I had witnessed the explosion of consumer litigation in the immediate past, and I knew there were few, if any, resources out there currently addressing it.

      I had zero connections, zero credibility, zero resources and zero backup plans. I had to make this business work. I needed some credibility, and fast.

      About 6 months in, I had an epiphany.

      As I mentioned, I owned the data. It occurred to me that there was a strong interest in the industry for this data, even if they didn't yet realize that they should be paying me for it. So I had to whet their appetites.

      How to do that?

      I decided to create a summary of all new litigation from the prior month. How many lawsuits were filed, how many companies were sued, how many plaintiffs were repeat litigants, who the most active attorneys were, etc. I then published this summarized data in the form of a press release, and emailed it to all of the industry's niche media outlets.

      Nobody had ever seen anything like this before.

      My statistics were published, my name got out there, and suddenly the phone began to ring. I did it again the next month, and the month after that. My statistics became a monthly fixture in essentially all industry newsletters and magazines. I started a newsletter offering the first opportunity to see my monthly statistics to my subscribers, a day before they were released to the media. My list grew quickly (and still is growing)

      Pretty soon, all of the major industry trade associations began reaching out to me. They were interested in having a relationship, as they saw great value in the statistics I was publishing and the underlying data behind them.

      Media - both industry and mass media - started calling me for interviews. In addition to every industry magazine, I have been quoted in the New York Times, Fox Business Channel, The Denver Post, The Minneapolis Star Tribune, The Miami Herald, The Dallas Observer, The Pittsburgh Tribune Review, credit.com and creditcards.com, and others.

      Then, the conferences began inquiring to see if I would be interested in having them fly me out and put me up in exchange for being a speaker at their events. They were interested in what I had to say, and my drawing power as the man behind the numbers. In the last few years I have had about 20 speaking gigs that took me all over the country, mostly on my host's tab.

      Are you getting the picture? It all started with one idea - to do something with all of this data I was sitting on anyway - and when that worked it began to snowball. The credibility I have attained in this industry is priceless.

      These statistics are nothing more than a byproduct of my actual business. Directly, I have not made a penny from them. Big picture, however, they are responsible for making me into a powerhouse.
      I've been curious about this kind of business model for quite a while. Supplying industry data, research or intelligence of some sort. Very, very lucrative when you find the right market, as your case demonstrates.

      Curious about how firms can find this data and then have a way to secure that from being in the public domain.

      I haven't found my own unique kind yet, but I'll be using adbeat.com to supply my clients with intelligence and reporting on their industry or niche's advertising campaigns. Which ads, ad copy, ad design, ad formats are the best, highest converting, longest running etc. I'll be reselling this virtually exactly as they supply it and hope that my clients don't discover the source.

      But your info has given me a very nice idea to use this kind of intelligence in the same way you have to grab and sustain prospects attention in the way using the same promotional appeals as the rest of the people contacting them that week will not, and to lead with that in my direct marketing campaigns to draw them into the funnel. Showing them, in specific, relevant and personalized detail, an example of how a main competitors campaign is beating them and generating far more profits then them in their marketing.

      Info that gives a competitive advantage is highly lucrative. No intelligent businessperson would dismiss critical and authentic information and intelligence about their specific business like they would with a ''Who Else Wants To Explode Their Client Base Overnight?!!!!' piece after receiving the same kind of pitches constantly.

      Don't worry about the lack of response to the gems you have dropped here. This place is often like that. The real good stuff goes over a lot of people's heads. But in my case, you generously sharing your success and methods has already given me massive benefit and will no doubt bring more when I put into action. Thanks.
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  • Profile picture of the author Jack Gordon
    Excellent, I appreciate you sharing that Underground.

    I was fortunate to work with public record data, information that nobody else considers proprietary. You will obviously have to navigate that issue a bit, but I would be surprised if there wasn't some way to accomplish what you want without stepping on a supplier's toes.

    One other example I have always had a lot of admiration for is what Ron Jackson did with aggregating and reporting on domain name sales at dnjournal.com

    The world is full of untapped ideas and opportunities. I wish I had 10 more of me to pursue them all.
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    • Profile picture of the author Bizila
      Jack, Can you provide this information for the UK? I have a potential different angle for this info, and I believe I can sell it from the different angle - so I guess what I'm asking is do you have an affiliate program / commission %? (Er - is the Pope Catholic?!)

      Rob
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  • Profile picture of the author Jack Gordon
    Sorry Rob, this data is US-specific. I wouldn't even begin to know how to apply the model in a different country.

    Thanks for asking, though.

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  • Profile picture of the author Huskerdarren
    This is a great thread and something I've been giving serious thought to. You've done some deep thinking to solve a problem in a way that really benefits your customers. I think we often focus too much on the marketing vehicles (Facebook, Adwords, mobile, Youtube, etc) and not enough time on the message and solutions to the problem.

    When we aggregate all of the frustrations consumers have with a particular industry and then get creative in addressing them up front, we stand out to business owners who frankly won't do the hard work of thinking and finding solutions. We're so quick to give up, make excuses, procrastinate and avoid the problems staring us in the face. I tell my kids that more than anything, I want them to learn how to think and look how to solve problems. Real thinking is such a lost art.
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    • Profile picture of the author Jack Gordon
      Originally Posted by Huskerdarren View Post

      This is a great thread and something I've been giving serious thought to. You've done some deep thinking to solve a problem in a way that really benefits your customers. I think we often focus too much on the marketing vehicles (Facebook, Adwords, mobile, Youtube, etc) and not enough time on the message and solutions to the problem.

      When we aggregate all of the frustrations consumers have with a particular industry and then get creative in addressing them up front, we stand out to business owners who frankly won't do the hard work of thinking and finding solutions. We're so quick to give up, make excuses, procrastinate and avoid the problems staring us in the face. I tell my kids that more than anything, I want them to learn how to think and look how to solve problems. Real thinking is such a lost art.
      Clearly, you get it. Nobody is sitting around, waiting for you to announce you are ready to make money online so they can hand you the secret formula. In spite of what practically every WSO advertises.

      Success has to be earned through creativity and persistence. It means taking risks, doing things nobody has done and being willing to fail. But for those who are willing to do the hard work, opportunity is plentiful.

      Thanks for adding your thoughts!
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  • Profile picture of the author Steve3214
    Its such a great technique and helpful for internet marketer who wants to do direct marketing.
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  • Profile picture of the author animal44
    Originally Posted by Jack Gordon View Post

    You see, there is a small subgroup of society that sues these companies for fun and sport.
    Originally Posted by Jack Gordon View Post

    The company that receives this mail, with the name of their current legal adversary peeking out of the address window, cannot help but open this mail and see what it is about.
    I wonder if you're opening yourself up for litigation under data protection or harassment or something similar?
    Basically you're publicly exposing someone's name in relation to a debt...
    In the UK debt collectors can get into legal trouble, if, for instance, they speak to a neighbour, or they contact the debtor's employer, regarding an individual's debt.
    Here, anyone who sees the letter, potentially sees this information.

    However, I do agree the principle is quite cool...
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    People say nothing is impossible, but I do nothing every day.
    What I do for a living

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  • Profile picture of the author Jack Gordon
    Hi Terry,

    It is a really good point, and one most people would not be sensitive to.

    Rest assured, I am well aware of the rules of this game, and I play by them to the letter.

    Plus, I have very competent legal counsel backing me up.

    To answer the question, I am not a debt collector, and the rules that apply to debt collectors do not apply to me. The rules you allude to are meant to protect consumers from embarrassment. I am not communicating with consumers (or their friends, family, employers, etc) at all. Plus, the data we are talking about is not in relation to the underlying debt - it is in relation to a public-record lawsuit that has been filed by the consumer. They have outed themselves by filing the lawsuits I am writing about.

    I never get directly involved in the collector/consumer relationship. I am just a data provider.

    HOWEVER... I do abide by the rules that apply to credit bureaus (i.e. Experian, Equifax, Transunion). Not because I am a credit bureau, but because if somebody was to try to come at me for anything, that would be the closest fit. By aligning myself under those rules, I have a pretty clear safe harbor to operate the way I do. I also have some obligations to consumers and clients that are an extra burden, but it is a small price to pay for the benefit I get.

    This is not the kind of thing that can be worked out overnight. It took years for these policies and ideas to evolve.

    Thank you for your comment!
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