I’m thinking about filtering out PO BOX from my tax lien list. I just get disproportionate amount of returned mail for those. Anyone else do this? Is this a bad idea?
Sam - It seems like a breakeven analysis math problem. What is your response rate and then your kill or flow through rate that those responses turn into deals and then your average return on a deal.
Say for example you send 1000 pieces at $1 each and 100 of those go to PO Boxes and 30 of those come back bad address. Were the other 70 worth $1.43 each?
If you get a 3% response rate or 30 responses and one in five turns into a deal, your kill rate is 20% you would expect 6 deals from your mailing. If you make $1000 per deal, is it worth while to spend $100 to send 70 pieces when you expect to get 2.1 responses and 0.42 deals that net $420?
That made up example worked out to 420, kind of an odd number. Someone must have been smoking something and made some wild assumptions.
Plug in your own numbers and see if it pencils for you to keep the PO Boxes or scrub them.
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@sean-markey Thank you… super helpful