Center for Direct Marketing

Jan 13, 2022

The secret to ginormous gains💰 early adopters (and gamblers🎰) know

The trick is A) how and B) when ~ they grapple with risk

How to tackle risk

You’ve probably heard the philosophy to decide how much you are willing to lose before you head to a casino. Set aside a portion of your winnings – perhaps the original amount – and plan to stop when you’ve lost the rest.

That’s how many direct marketers make millions! By testing in small amounts that they are willing to risk.

When? Get in early to make the most $$$.

#1. Early adopters made 15:1 doing infomercials

In the early days of infomercials (those 28 minute commercials), advertisers could take a budget of $10-25,000 to try 10-25 airings of their show and see results over a couple of days. Early advertisers could make $15 for every $1 they spent in media in the late 80’s/early 90’s. With competition, media costs went up. Today, advertisers work hard to make $1 in sales for $1 in media and have to sell more products to the same customers to make the effort worth it.

#2. CPC costs were low for early adopters

Pay-per-click (PPC) advertising has a similar story. Keywords for mortgage ads can run $40+; I can remember years ago when “mortgage” was $10, so you can imagine it was under $1 in 2002 when Google started those text ads. That’s why managing a long-tailed keyword campaign today takes pros who know their way around software. Clearly, the greater profits were in the early days of PPC.

What does it take to continue success?

Continue testing, tweaking and be ready to try the next new thing.

Center for Direct Marketing

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