Retirement Ready Income Programs

Most Newsletters Don't Work - part one: Success and How to Monitor It

Submitted by Jason Edwards | RSS Feed | Add Comment | Bookmark Me!

Some people think newsletters don’t work. Often, they’re right. In a world where most newsletters don’t work, it is common to be confused about how to define newsletter success.

What’s it good for?

Over the past ten years, I have paid attention to newsletters. I can tell you why most don’t work. It starts with confusion about what newsletters are good for. Confusion about how to monitor success comes from that.

How many next-day phone calls?

Many marketers expect a newsletter to generate results as soon as it arrives. Most newsletters do. However, when the results expected are new sales and referrals following each issue, most newsletter issuers eventually conclude that newsletters don’t work. By the way they gauge success, they’re right.

Check your perspective.

From a sales perspective, an ineffective newsletter should be canned. But first, consider other perspectives. For example, think from the perspective of the impression left on readers. What impression would it make on you to receive two or three newsletters, then none at all, from your accountant? your lawyer? your investment advisor?

What newsletters do

Because of mismatched expectations, many who issue newsletters conclude either that newsletter success is harder to achieve than they imagined, or that newsletters just don’t work. Yet, I see something in these situations that often escapes people struggling with an unsuccessful newsletter: A newsletter shapes people’s perceptions of you.

Four Brand Effects

It can do other things, such as announce news and complement advertising; still, every newsletter is a reputation-shaping instrument of brand management. Any newsletter will:

*leave a first impression, or

*mould an already-formative impression, or

*validate a formed impression, or

*confuse a formed impression.

A newsletter makes an impression.

How does this fit into a context where more sales and good referrals are wanted now? Consider the following example.

Maintain meaningful contact.

There are people who receive newsletters from their credit union who would never attend a competing bank’s grand opening in their own neighbourhood. They’re so loyal to the credit union that they don’t want the bank’s cupcakes or door prizes. The credit union’s newsletter refreshes their loyalty every three months. It maintains meaningful contact with them. It’s a tool of client retention.

Effective at what?

The problems solved by the credit union newsletter in the example include:

*competition of extrinsic incentives (e.g. “Free gift when you sign up!”).

*vulnerability to client attrition.

*the cost of acquiring new clients.

*the opportunity cost of losing profitable clients’ future business.

Watch the numbers.

Watch-the-books managers should direct attention to:

*business per client – segmented by profitability per client.

*referrals per client – with a profile of clients providing referrals.

*client attrition – with a profile of clients lost and why.

*net increase in clientele (including clients gained and lost by all means).

Monitor over time.

Review these metrics on a quarterly basis and compare each quarter. Use this review to set newsletter performance goals in tandem with business performance goals (even if your newsletter is not a quarterly). Why not measure newsletter success this way?

Steady, no spikes.

A good newsletter might not cause a spike in sales. It can prevent losing a client who is being wooed by competitors, though. What business problems do you want to solve? Is it reasonable to expect a newsletter to help solve them?

Client relations success

Newsletters shape market perception, first and foremost, and can help to maintain hundreds of business relationships with meaningful engagement. Those who accept this and apply it wisely can find great success with newsletters. Those who expect each issue to boost sales or to bring new customers are wise to consider other methods. A good newsletter as a client-relations tool improves business measurably over time.

Click for Details --> Business Development <--


Please join the private article mailing list or Call 800-245-0494 for additional information

Risk Management: Income, 401k, and IRA Programs

Take a free tour of a professional investment managers' private SEP IRA program during ten years surrounding the financial crisis:

CLICK HERE

In developing the investment plan, personal financial goals, objectives, time frames, and future income requirements should all be considered. A first step would be to assure that small portfolios (under $50,000) are at least 50% income focused.

At the $100,000 level, between 30% and 40% income focused is fine, but above age 50, the income focus allocation needs to be no less than 40%... and it could increase in 10% increments every five years.

The "Income Bucket" of the Asset Allocation is itself a portfolio risk minimization tool, and when combined with an "Equity Bucket" that includes only Investment Grade Value Stocks, it becomes a very powerful risk regulator over the life of the portfolio.

Other Risk Minimizers include: "Working Capital Model" based Asset Allocation, fundamental quality based selection criteria, diversification and income production rules, and profit taking guidelines for all securities,

Dealing with changes in the Investment Environment productively involves a market/interest rate/economic cycle appreciation, as has evolved in the Market Cycle Investment Management (MCIM) methodology. Investors must formulate realistic expectations about investment securities--- by class and by type. This will help them deal more effectively with short term events, disruptions and dislocations.

Over the past twenty years, the market has transitioned into a "passive", more products than ever before, environment on the equity side...  while income purpose investing has actually become much easier in the right vehicles. MCIM relies on income closed end funds to power our programs.

To illustrate just how powerful the combination of highest quality equities plus long term closed end funds has been during this time... we have provided an audio PowerPoint that illustrates the development of a Self Directed IRA portfolio from 2004 through 2014.

Throughout the years surrounding the "Financial Crisis", Annual income nearly tripled from $8,400 to $23,400 and Working Capital grew 80% $198,000 to $356,000.

Total income is 6.5% of capital and more than covers the RMD.

https://www.dropbox.com/s/b4i8b5nnq3hafaq/2015-02-24%2011.30%20Income%20Investing_%20The%206_%20Solution.wmv?dl=0

Managing income purpose securities requires price volatility understanding and disciplined income reinvestment protocals. "Total realized return" (emphasis on the realized) and compound earnings growth are the key elements. All forms of income secuities are liquid when dealt with in Closed End Funds. 



Associated Content:
Registered Investment Advisors & The Stock Market! - This page is intended for professionals only. Here's an opportunity to provide a unique and necessar...
Investment Advisors 101... Ask These Questions - Investment Advisors (IAs) come in all different intellectual, professional, and alphabetical varieti...

Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.