If you were around the network marketing industry in the 90’s you probably still remember your mailbox being filled weekly with letters and postcards on almost every bizz-op and mlm company in existence.

Those were the days.

Lately I’ve been getting a few postcards in the mail promoting a few different opportunities. I’ve gotten both network marketing companies and direct sales programs. I’ve also seen more and more people online touting the ‘wide open opportunity’ a direct mail postcard system provides.

Back in the mid 90’s before the internet really came into it’s own as the dominant tool for reaching prospects about your network marketing business there was direct mail. If memory serves me correctly you could mail a postcard for 10-15 cents. At that time people were just learning how to use the internet so direct mail systems were the dominate way to contact your prospects.

Many people were able to build large groups using this method. Well, at least in the beginning of their postcard system. Like anything else, once you see it enough times you become immune to the sales message. The people who came in later down the road ended up spending their money on lists and postcards with little or no return on their investment.

Once a system has been around for awhile the numbers just don’t work in your favor. At that time it still cost you a few hundred dollars per thousand postcards including the opportunity seekers lists. With a .5 – 2% response to your mailing it just doesn’t create enough sales to pay for your costs. This is regardless even if you can close half of your responses.

In the beginning of a postcard system the responses are generally higher enabling you to make money and the people you bring in to also make money. The problem is they just don’t last, and neither will your downline.

The numbers are even worse today with the cost of the postcards, mailing, and leads lists. You are talking 4-600$ per thousand. Promoting a higher ticket program can get you in the black a little easier but that’s a big nut to crack each time you do a mailing.

A quick example…

A 1000 postcard mailing with a 1% response equals 10 responses. A $100 program with a fast start bonus of 50% would equal $500 if all 10 joined which isn’t going to happen. It’s $250 at a 50% closing ratio which is a phenomenal rate. So if you spent as little as $400 to do that mailing you are out money even if you are a master at closing.

The numbers get worse for lower priced programs. You also need to keep in mind once you earn the fast start bonus most companies today are only paying 4-5% commissions on your downline’s volume the next month. You will see a lot of money going out long before you have a large enough group to compensate for your expenses.

It still holds true today. The owners of the system and list brokers along with the people who get in early in these postcard systems are the ones who are going to make the majority of the money. Everyone else will just be helping to keep the post office in business.

My advice is regardless of how simple and exciting these systems sound is to keep your money in the bank. The numbers just don’t work. Learning how to use the internet is far more valuable and cost effective.

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