Let me start by saying I am not an expert and have never done this before in my life. The brochure/flyer I presented before I want to use in a door to door distribution campaign. Click here for the design in question. Assuming I have worked with all the feedback in the design and it is fully optimised I want them to be printed and brought around. Here are the costs: I found this website that offers the service in Amsterdam to distribute the material for me. This is what they are charging.
I tried selecting post codes and the minimum is actually around 10700 residential homes. This would make the costs just for getting them delivered at 291,58 euro (27,25/1000=0.02725 0.02725*10700=291.58). This is excluding vat however which is at 21% in the Netherlands. Total is at 352,80 euro The costs for printing the design is:
I can only order it like this if I need 10700 pieces (so 300 pieces go potentially to waist as it will get delivered directly to the distribution company to save on postal costs). I am quite hopeful I am able to get 65 euro discount but I am not sure if the coupon is still valid when I am going to order them so I will not take that into account in this strategy. This will make the total costs at 679,47 euro. Now the potential affiliate income profits. If I would make the assumption that the conversion rate of the flyers would be 1% (I should not aim to high as this strategy is not tested yet, aiming to high could make me spent my budget to fast versus my income and make me fail) 1% would mean I get 107 successful affiliates. From the telegram chat I know that the on average spending per booking is 250 euro (or 300 dollar). That would give LockTrip the total income for first bookings (not considering later bookings) of 26750 euro. Depending on the discount % am going to give I get either up to 3% income from that total amount. To make the coupon attractive I will either give 5 or 4% extra discount. With 5% discount I will be receiving 0,5% income over the first bookings which gives me 133.75 euro income. With 4% discount I will be getting 267.5 euro income on the first bookings. Of course I do not know when they will book and I plan to make the coupon code valid for 2 years in this case due to current times (corona) where people might be afraid to travel. I would rather have them keep the flyer for later then not use them at all. So it could take a while before I even earn it back. What do you think about that? Is it the right decision to make them valid for so long? This is making me for the first booking at losses but future re-bookings should make up for that. Also I might be lucky and get a higher conversion rate or on higher on average booking amount. With door to door marketing a very high percentage read door to door brochures I have read in an article last week. So who knows. Do you think spending 679,47 euro for reaching 10700 homes is worth it? What do you think about my speculation/price income speculations? Should I be targeting Dutch speaking homes in Amsterdam (that most of the time can speak English as well even though not as good as we all speak it here) Dutch people are from the culture very price sensitive in general and are likely to try something new if the price advantages are given. I do know from my current job however that despite the fact Dutch people speak very well English that conversion rates in English are much lower then in Dutch. I am in a sales job (by phone mostly) and our Dutch team is understaffed. So we get help from the English team. When conversion rates are compared the conversions from the English team at the Dutch line are much lower. This is with speaking however and not reading. Or should I try to find out prices of services that can distribute them in England first, for example London? I have no idea about how price sensitive the English are, but at least I will be targeting them in their own language. I could also make the material in perfect Dutch but I do not know how they will be responding from going from Dutch brochures to an English website. I am not having much money at the moment and even have to save up to be able to start this campaign, so my financial resources are limited. I would not mind using one of my credit cards and pay it back monthly if I think the right time is now and I should start. I have a budget of around 150 euro per month (the money I used to put into buying loc before monthly and now want to put into marketing instead) Of course I can spent my marketing budget only once, what are your opinions? Should I go ahead with it, I do not mind the risk. Or should I find a better plan keeping my budgets in mind. I have to say that I live in Germany and Germans do not respond well on English websites at all generally speaking. I would only start a campaign in my country of resident until the LockTrip website is in German. This means I wont be able to start small and bring around the flyers myself in small quantities first as I am not fiscally there. The delivering companies only start at big numbers (which I do not mind if the return will come). One last question, I promise:
When choosing post codes I can choose between the above age categories. See how many of them are single, have children etc. Which ones should I target to get the highest conversion rates/spendings? I would think that 50+ people are for example less likely to try something new and families book more rooms at once and singles travel more often, but might spent less because they need less rooms. What is your opinion on that?