If I Only Had a List to Start My Catalog Business!
4. If you’re going to invest in catalog marketing, develop a fully cooked plan that includes a mail plan by year, by drop and by list — with cash flow estimates, P&Ls and the aforementioned LTV estimates. A plan by drop and by list includes many lists, including your housefile and rented lists.
5. Expect to invest in acquiring new customers for a number of years. Assume that you need to fund your catalog for three years minimum until you have reached critical mass. I define critical mass as enough customers to generate enough sales per catalog to cover your prospecting efforts. Said another way, that’s your break-even point.
Speak to you next week.
Jim Gilbert is president of Gilbert Direct Marketing, a full-service catalog and direct marketing agency. You can reach him at email@example.com or 561-302-1719.