Return on Investment
Using Response Mail's Formula For Success
(6x9 Express Letter Package)
#1 |
#2 |
#3 |
|
#
of pieces mailed |
10,000 |
10,000 |
10,000 |
%
of response* |
.5% |
1% |
1.5% |
Total
phone calls |
50 |
100 |
150 |
Total
Closed Loans (20%) |
10 |
20 |
30 |
Total
Avg. Revenue |
$30,000 |
$60,000 | $90,000 |
RME
Total Cost |
$5,700 |
$5,700 |
$5,700 |
Lender Data Cost |
$1,200 |
$1,200 |
$1,200 |
Return
on Investment |
$23,100 |
$53,100 |
$83,100 |
#1 |
#2 |
#3 |
|
#
of pieces mailed |
5,000 |
5,000 |
5,000 |
%
of response* |
.5% |
1% |
1.5% |
Total
phone calls |
25 |
50 |
75 |
Total
Closed Loans (20%) |
5 |
10 |
15 |
Total
Avg. Revenue |
$15,000 |
$30,000 | $45,000 |
RME
Total Cost |
$3,100 |
$3,100 |
$3,100 |
Lender Data Cost |
$600 |
$600 |
$600 |
Return
on Investment |
$11,300 |
$26,300 |
$41,300 |
If
you do 12 mailings per year,
using example #2...
you could NET $637,200
NOTE: This chart is only a sample of a backend analysis for mortgage brokers who use direct mail to increase their business. These are estimates only and will vary due to different types of commissions and investment structures. Also, you must consider the life-time value of a client, including referrals. *Response rates based on average of a recommended 5 to 7 mailings.
