10 Proven Ways to Increase Your Outside List Performance
Think of prospecting as an investment in your business’ future
Most prospecting is done at an incremental loss. Accept that you can’t make money prospecting based solely on initial orders. You need first-time buyers to make a second purchase to make a profit. Think of prospecting as an investment in the future of your business.
Not all expenses in a catalog business can be incremental. Treat them that way and you’ll incremental your way into the poor house! But with prospecting, cover just your out-of-pocket expenses, including customer returns and allowances, cost of goods sold, and direct-selling expenses. The housefile has to be strong enough to support the overhead expenses of the business — not the prospects. The formula for determining the incremental break-even point is as follows:
- Companies:
- Lett Direct Inc.
- People:
- Stephen R. Lett
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