Those packets and circulars you receive in your mailbox — otherwise known as direct mail — are great opportunities for companies to spread the word about their brand. Even in a high-tech world, putting a postcard ad in someone’s hands is a highly effective form of advertising.
In fact, the numbers prove that this is a successful marketing tactic. By the end of September 2022, direct mail marketing pieces increased 1.4% to over 67 billion, and revenue increased nearly 10% to $16 billion.
As an entrepreneur interested in direct mail franchise opportunities, you may already know it’s a good investment. Still, it’s important to do your research as there are upsides and downsides in every industry.
Let’s look at the five biggest pros and cons of the direct mail franchise industry.
Pros and Cons of Direct Mail Franchise Opportunities
Pro: Direct Mail Marketing is Not Dead
Nowadays, we are bombarded with advertisements coming through email, streaming services, web searches, traditional media and social media. This makes it hard to believe a circular or direct mail packet delivered to your mailbox would still be effective. However, placing ads right in someone’s hands is impactful, and the industry is far from dead.
The average response rate from a direct mail piece is between 2.7% and 4.4%. While the average email response rate hovers at less than 1%. Over 40% of people who receive direct mail at least skim it. And it’s not just the older generation. More than 80% of Gen Z and nearly 90% of Millennials find direct mail marketing useful – especially items like coupons and QR codes.
Pro: Direct Mail is Dependable
Direct mail is one of the few marketing channels that engages most senses. You can touch it, see it and sometimes even smell it. You can even add in taste if a food advertiser provides a free sample. Because of this, direct mail is more likely to be remembered compared to digital channels. Consumers tend to trust brands from direct mail versus digital ads, with 56% of customers revealing that print marketing is the most trustworthy type of marketing, according to Small Business Trends.
Con: Response Rates Can Be Slow
Some brands may have concerns about placing advertising in the mail due to recent postal service slowdowns. Keep in mind, though, that this is a unique medium —Direct mail is not meant for an immediate response the way digital marketing is.
Mail isn’t delivered instantly, so digital marketers may have to craft promotional campaigns around the constraints of a slower delivery time. But when created effectively, direct mail’s impact is easy to measure. Promotions like coupons, for example, are easy to track for ROI and typically show a large redemption rate.
Con: It Takes Expertise to Target the Right Audience
You must do your homework to decide which ads need to be placed in certain mailboxes. That can be time-consuming, and you may not have access to that data without obtaining certain lists about consumer buying habits.
Understanding demographics is key to a good ROI for your clients, which means repeat business for you. If you have an overall understanding of business, sales and customer service before launching your direct marketing franchise, you will have an edge in the industry.
Pro: Direct Mail Marketing is Cost-Effective
With properly targeted campaigns, direct mail advertisers will keep coming back. If the right campaign proves to be a highly effective form of promoting their brand, clients will renew their campaigns cyclically. Although direct mail may be just one aspect of their total advertising strategy, it has the ability to reach and specifically target the households they want to touch.
Why Invest in an RSVP Direct Mail Advertising Franchise?
If you want to be a part of the direct mail industry, then look no further than RSVP Direct Mail Advertising. RSVP provides a proven marketing solution, driving qualified leads to advertisers for more than 35 years.
We have cracked the code for lead generation with our proven B2B concept. It begins with our proprietary database. We factor in:
- Home values
- Lifestyle data and more
Our tactics generate qualified leads proven to convert, which means effective ROI for your clients and ongoing revenue for you.
To help you succeed, we feature advertisers in our high-quality direct mail marketing solutions with digital integration, tracking conversions and driving business growth.
As a Franchise Member, your initial startup costs are low. You’ll begin with an affordable franchise fee, allowing for a quick ramp-up. Using your home as a base, you’ll sell RSVP direct mail marketing solutions with a turn-key process for design, production and mailing.
If you’re interested in an appointment-based business opportunity with a great work-life balance in a trusted industry, then contact RSVP Direct Mail Advertising about our direct mail marketing franchise today!