123 Power System Team Update - Postcard Profits
ByWoah! It looks like it’s been a while since the last update! Where have I been? Well, working my @$$ off for one.. haha And two: totally kickin’ butt with this system.
(I’ve been working on a new ebook/course that teaches you how to personal brand yourself and create your own funded proposal/ebook…You can get updated on the launch of that course here: The Personal Branding Blueprint)
Why does the 123 Power System work so well? Because it teaches rookie entrepreneurs the fundamentals of marketing: testing, tweaking, conversions, and more…
What I wanted to discuss in this update specifically is postcard marketing…
Now in the 123 Power System - this would technically be step 3… so if you’re new to the home biz industry and/or know nothing about marketing, don’t let these figures scare you. You should be focusing on cheap or free advertising in step 1, eventually moving on to step 2, and (duh) step 3 when you’re business gets to that point…
Disclaimer: these are only my results. This is afterall a business and I can’t guarantee your success - nor can I guarantee that you’ll get the exact same results, etc etc.. Just use common sense here people! 
If you want to cut to the chase and see what postcards we’re using, go here: 123 Power System Postcards.
If you’ve tried postcard marketing in the past, you know that it can be a royal pain in the butt. Here’s how it USED TO WORK before we came up with this team system…
- Find a list you want to mail to…
- Call a list broker to buy the list (that takes 1-3 days sometimes…)
- Design a postcard
- Send the design to a printing company, get it approved, and then get them to print out XXXX number of postcards.
- The list broker sends the list to the postcard printing company, and they print the addresses on the postcards in the same step as above…
- If the printing company also does the mailing (ideal), you pay the postal fees and the postcards get shipped.
The biggest problem in my opinion isn’t the lead time to get the list to the printing company… it’s the actually printing of the postcards… I’ve had companies quote me 3 WEEKS LEAD TIME for printing. Let me put this in perspective: they’re basically saying “Give me $299 NOW and I’ll let you know when I get around to printing your postcards…”
It’s a clusterf*ck…
Needless to say, I didn’t want that to be the experience for everyone that gets on my 123 Power System team. So here’s what we setup: a complete turn-key postcard marketing campaign.
- The designs are already done - you’ve got 2 color postcards to choose from…
- The lists are already purchased on a team co-op (cheap!!!)
- The mailing company already has everything setup so when you put in an order it gets mailed the NEXT WEEK!
This is helping our teammates get back profits QUICKLY and EASILY. Why? Because this is the best way to get a wave of traffic to your website or 1-800 #…
Now, like I said - I can’t guarantee these numbers, but here’s what I’ve personally found:
1000 postcards (including leads, printing, mailing… EVERYTHING)= $617
80 leads (8% response rate)… 8 sales (10% closing rate).
Now, if you don’t already know this, the 123 Power System is a physical product that gets mailed to your customer upon purchase. You can mail them, or the company that makes the system can drop ship them.
$215 gross per system - $50 drop shipping (it’s less if you do it yourself…) = $165 gross profit per package.
8 sales x $165 = $1320 in gross profits
$1320 - $617= $703 in net profit!
Again, let’s put this in perspective… You basically doubled your money in a week. You did the advertising for your business, and it took all of 5 mins to pay for the co-op postcard. You made $703 your first week in the business, NET PROFIT.
Now, don’t take this next part lightly… In fact, DON’T do what I’m about to say. I’m just giving you another example and the last thing I need to hear is “Adam said to max out my credit cards!” NO! I’m NOT saying that. But I still need to give you an example of what one of our team members did:
“Jenn” purchased the power system, the custom power system website, and the Explode My Business Mastermind Course. Total startup investment = $459. She bought this on her credit card. Then she did a 2000 postcard mailing, an investment of $1147.
Now some of you may be thinking, “Woah! That’s like $1500 out of pocket!” Sure, but realize everything that she purchased was an investment in her business.
Now check this out: 2000 postcards netted her 21 sales. 21 x 165 = 3465 - 1147 for the postcards = $2318 in NET profit her first week! THIS is how people are making a KILLING with this program…
Don’t believe me? Well I just spent $3000 on a postcard apprenticeship program to learn even MORE of the ins and outs of direct marketing… and the value I’m going to bring to the team is going to be even more ‘nasty’ over the course of the next 6 months!!!
Now, let’s go back to “Jenn” for a minute.
What do you think she did with that $2,318 in net profit? She could basically keep reinvesting that $1147 every week and she’s got a 6-figure income right there, right? What would you do? Would you quit your job asap?! Would you go and buy a new car?
Sorry to burst your bubble… but if you’re into the HYPE and MATERIALISM of the home business industry, I’ve got a rude awakening for you. Don’t fall for it! You may be excited about $2k per week, but what happens when you have one slow week or the postcard isn’t converting as well next year? What do you do?
You see, this is one of the reasons our great country is in turmoil right now. We figure out stuff like this that makes a quick buck… then we go and get in massive debt trying to buy stuff we just can’t afford.
Here’s a new twist for you: KEEP YOUR JOB for a few more months at least! Be glad you still have one! Keep living off of your job income, and use any money you make in the 123 Power System to reinvest in your business and your own education as an entrepreneur.
Now, what if “Jenn” took that $2318 and invested most of that in to a 4000 postcard mailing and put the rest in savings? She’s not only starting to build up a savings account, she’s now doubled her business in a week!
(4000 postcards => 42 sales x 165 = $6930 - $2197 = $4733 in net profits)
Start being smart with your money.
I can show you how to make THOUSANDS online and offline. But it’s not about how much money you make… it’s about how much money you keep.
Adam Holland
18 Comments
July 7th, 2009 at 11:31 pm
Adam,
I was ready to join up until this email. Show me where I’m going wrong with my math.
1320 in sales - 617 for postcards = 703 profit BUT subtract 887 for the follow-up mailing which is presented as a crucial part of the program = A LOSS of -184.
AND this is assuming a 10% sale rate. I’ve used postcard marketing before and NEVER had more than the “industry average” of 1-2%- many times less. Even with your disclaimer, are you stating as fact that you consistently outperform the industry average by 500 to 1000% every month with a 10% sale rate using postcards, and if you are sending out the recommended follow-up letters, why is that cost not listed?
Ron
July 7th, 2009 at 11:43 pm
Hey Ron - GREAT question.
These numbers are based off of using ONLINE ONLY for the postcards. You have the option to put either your 800# and/or your URL on the postcard. I’m telling my team to do URLs only! Then your prospect sees the sales page on your website (which is the report/letter in online format)…
Also $1320 in sales is only 8 sales out of 1000 postcards.. that’s under 1% !! (that’s only an 0.8% order rate…)
I could definitely get that # up myself if I just made ONE stinking phone call to my leads and said “Hi, this is Adam. Just wanted to see if you had any questions about the 123 Power System. Also wanted to let you know I AM a real person and I’d like to help out however I can…”
That small little touch can more than double your conversions. Problem is - I don’t have time for it! I’m promoting other businesses, affiliate products, AND I’m writing a new course! BLAH!
Anyways - I’m starting a postcard “apprentice/coaching program” that cost me $3000. I plan on using what I learn from that and helping improve our team postcards as well.
EXAMPLE: You can use pURLs (personalized URLs) for each postcard recipient and I’ve heard of as high as 40% RESPONSE RATES (not order rates - RESPONSE RATES)…
I only got an 8% response rate on my postcard… Imagine instead of 80 leads per thousand postcards, it’s 400?? GEESH!
More info on that to come..
==> Did that answer your question Ron?
Drop me a line at my office line with any other questions: 518 772 2291
Adam Holland
July 8th, 2009 at 8:44 am
Very good blog Adam. My own experience with Step 3 of the 123 Power System has been similar–no staggering profits, but a good solid REALISTIC ROI.
Most important about Step 3 is that there is such a massive market out there for business opportunity seekers that it makes this a duplicable program, something that is very rare in the home business industry.
Best of luck with your business and your ebook.
Cheers,
Rob Hunter
July 8th, 2009 at 9:03 am
Thanks for your comment Rob.
It’s glad to see that 1.) the power system is working for you.. and 2.) you understand that marketing does NOT equal the lottery! haha
Too many people get into this great industry with diamond sparkles in their eyes and think “I’m going to hit it big! Where do I spin the marketing roulette table?”..
when it all just comes down to conversions and numbers..
It’s not as “sexy” as the gurus tell you out there, and it’s not about the hype.. but it’s the truth. It’s all in the numbers..
July 20th, 2009 at 6:43 pm
let’s see info thanks
July 23rd, 2009 at 10:33 am
Hey Vince - “let’s see info?” please explain…
there’s only like 20 articles, and tons of videos on the site..
not to mention the special report when you optin to get it.
Adam
August 6th, 2009 at 1:25 am
Adam,
I too have a problem with your math, and if this system is what you claim… I’m sold. If 1000 postcards cost $617 then you make 8 sales as given in the example and your left with $703 in net profit aren’t you just spinning your wheels? I understand that’s URL only. But it seems to me that while at $200 per sale it needs to be that high to cover the expense of the marketing. It seems to me that you don’t calculate the cost of doing that process over again. I have to spend $1500 or “invest” just to sustain the investment? I think Jen was a good example, but to repeat those results again she really only had $900 profit. With no assurance of the same results. I see how the doubling works, but unless you get those results each time and “ramp up” to more costly campaigns it doesn’t look promising. You run the risk of spending that much and NOT making the sales, or just breaking even, what then?
I think giving your phone number can be a bad thing for some people. What if they call and you can’t sell? Because if they don’t buy on the website you have to sell them on the phone. It turns into a cold calling / warm calling scenario and your just another telemarketer. Not only time consuming but not always effective. After reviewing several youtube videos and your website these are the conclusions I have come to and hope you can answer them so I have a reason to start saving up $2000 and get this system!!!
I do admit the website is great and you seem to present the system the best out of the 20 or so people I’ve seen. Congratulations with your success I just hope it’s repeatable with me!
August 6th, 2009 at 8:35 am
Hey Ken - I like using REALISTIC math. I’d rather show people my “worst” results using the postcards than hype them up with the 3% sale-rate BS. That’s REALLY tough to do. But it’s been done before.
My example was a 0.8% close rate. I could print my url on a postcard, spit on it, and send it in the mail and get that.. haha (just kidding).
MANY of my more recent runs have been 1.2-1.8% close, average around 1.5%
15 sales x 165= $2475 - 617 = 1858 profit.
My concern is your wording: “if you don’t ramp up”. THAT is the MOST important part of the 123 power system. THAT is WHY I chose to promote it as a mid-tier business opp. It teaches you to start SMALL.
Postcards is STEP 3 in the power system. And if you think you’re going to make $20k per month on all free advertising, get prepared to spend a TON of time learning all sorts of online marketing techniques with social media.. That was the kind of stuff that took me the last 1 1/2 to learn (ugh!).
As far as the phone number, no you don’t have to put it on your website. But just having it there at least shows people you’re not some scammer. And IF they do call you (most of my sales are total autopilot) you don’t have to “sell them”. If they’re calling you’re just answering a few questions before they order.
If I can give out my phone number while creating 100+ leads per day and running 3 businesses and STILL have time to get back to my prospects’ voicemails, anyone reading this can do that.
Saving $2k is worthless if you’re just going to “gamble it” on your marketing. If you already had it and wanted to put it ALL into postcards, I wouldn’t have suggested it. I would have said put the 617 into postcards, another 400 into solo ads, and try 50 in ppc. THEN when you get some measureable results, keep testing and tweaking.
START ON STEP 1!!
Hope that helps,
Adam Holland
PS - keep your eyes out for my new training coming out VERY soon:
http://www.thepersonalbrandingblueprint.com
August 7th, 2009 at 3:11 am
I’m sorry but yet again you don’t tell the WHOLE STORY with your math.
“MANY of my more recent runs have been 1.2-1.8% close, average around 1.5%
15 sales x 165= $2475 - 617 = 1858 profit.”
so continue on and finish the circle. 1858-887 for the follow up letter that’s apparently part of the program. so your left with 971. You make it sound like you end up with 2K after every campaign but you never count the cost of launching another campaign. My point is not that I won’t “ramp it up” it’s that I won’t have the money to! so I have 971 left with another 617 to “reinvest” and I’m left with $200 maybe!! Who’s to say I’ll have the same results next time? Now I could do as you recommend and put it in a solo ad or ppc but then I have no profit and I’m just selling something just to sell it.
I know you won’t make $20K a month with free marketing. I just want to make more then the cost to operate business. I think it’s funny you say “gamble” your marketing budget when if the numbers are as accurate as you say. Even with 0.8% sales “worst case scenario” the results should be true exponentially. Yet you say you wouldn’t invest all your marketing budget into it?
15 sales x 165= $2475 - 617 = 1858 profit
1858 - 617 for postcards = 1241 true profit.
I hope it’s that simple. Can you really just mail the postcard out and get those results? I didn’t even know about the follow up letter, what other hidden cost are there?
I think this is a general question that most people would ask. You still haven’t been able to overcome my objection. Based on the numbers you provided in this post on a worst case and your own personal results, where do you get the money to relaunch a new campaign AND make a profit? Please give an example that takes into an account the WHOLE process. You say “It’s all in the numbers..” then show me.
August 7th, 2009 at 8:46 am
Again, I’m NOT using the follow up letter at all. My “follow up letter” is the sales page they see when they optin to my 123PS website:
http://www.adamswealthplan.com/
Using an autoresponder for $19/mo is a heck of a lot better than hundreds of dollars in mailing the letter out… AND I can follow up once, 10 times, 100 times… it doesn’t matter, thanks to the autoresponder.
And I DO spend a TON in postcards, but I’m getting a great ROI with other forms of marketing too.
I show my team exactly what I’m doing to market my business in our team webinars.
“who’s to say I’ll have the same results?” <— this is a BUSINESS. there’s never any guarantees. Your first postcard run could net you $10k, the next one could net you one sale… But by TESTING and MEASURING your results you can find the averages and know what to expect in the long haul.
If you’ve got the lottery/get-rich-quick mentality, business is not for you. Not just 123, but any one.
If you’re looking for a guarantee every time, there isn’t one.
I hope that’s the brutally honest truth you’re looking for.
Adam
August 15th, 2009 at 1:10 pm
Adam,
How r ya? Im going to join the team soon.I was wondering what is a good start up capital amount to have before starting the Power system?What is the bare minimum u would advise?
August 16th, 2009 at 2:42 pm
215 for the system, and about 170 for the website (website, domain name, and autoresponder). 400-500 or so will do it, but just know that you should have some kind of a marketing budget that you can commit to on a weekly/monthly basis.
Adam
August 18th, 2009 at 11:34 pm
Adam,
so realistically speaking, i should be start up with a capital amount of at least $1000 give or take?
August 18th, 2009 at 11:41 pm
Hey JD - understand that postcards should be step THREE in the 123 power system. $500 should be enough to get started w/ the website and some marketing money.
There’s a link at the bottom right corner of the page when you’re ready to get started.
All the best,
Adam Holland
September 3rd, 2009 at 12:06 am
Ok so I’m sold on the system. I’ve seen some of the people on youtube selling it. I’m like Billy Mayes compared to them. If not for the fact that it contains principles that you can apply to other advertising markets. Couple things I’m not clear on.
Once you buy the system I have my copy, but when someone buys it from me they give me the money, but how do they get theirs?
If I buy from you (which I probably will) you include a website package. Other people that buy from me are going to need a website as well. A blog and a capture page. Can I sell them your website package, and explode my business product and get part of the sale?
A Thought I had. Why do I have to buy the product to promote it? Why can’t I make my own wesbite (wordpress blog), use social networking (facebook, twitter, myspace etc.) upload youtube videos etc, and wait to see if i get a sale? I understand it’s hard to sell a product I have seen and don’t have. But I’ve never seen you hold up the book or cd in a youtube vid.
Just a thought that I could brand myself / the product and see what kind of response I get with free marketing before I’m out $200 for something I can’t sell and contains information I could find in a library or on goggle already.
Thoughts?
September 3rd, 2009 at 8:58 am
Yes, you have to have purchased the system to get the reseller rights.
When people buy from you, you can ship the system yourself or have the company drop ship your customer the product. All of this is explained in the manual and on our team training site.
To try to keep the website cost low there’s no commission on it if you have a team member that gets it.. however, there is a commission on the EMB mastermind course.
The course regularly sells to my list for $247. My 123PS customers (as well as yours) can get it for $97, and you get a $67 commission on it.
Again, all of these questions and setup processes are covered on our team training sites.
Just get on the band wagon and get this thing rolling.. then all of the pieces will fall into place.
All the best,
Adam Holland
http://www.123powersystemreview.net/order.html
October 11th, 2009 at 11:52 pm
Are you still promoting this? If so, how much are you making every month and how much are you spending to make that? And what marketing method are you using?
October 12th, 2009 at 8:56 am
CV - all of these questions are answered in my newest blog post:
http://123powersystemreview.net/123-power-system/is-the-123-power-system-saturated-already-is-it-dead