Business to business direct marketing holds even more advantages for small companies than does consumer direct marketing. Most of your advantages have to do with the cost of media. Since business lists and target markets tend to be small, your direct mail CPM will be about the same as that of your larger competitors. By contrast, in consumer direct mail, your competitors' CPM will be much smaller than yours if they mail in high volume.

In addition, since lists are smaller, there are fewer chances for direct mail testing, so you and your opponents are left to rely more on your own research and marketing savvy.

Competition may be mailing to the same 3,000 prospects. Further equalizing the competition with big business, many trade publications have limited circulations, compared to consumer magazines, and proportionately lower rates as well. A small company can often afford to advertise in the same trade journals as their larger competitors. Without going broke on a media schedule, you can have strategically placed awareness advertising Review the editorial content to see if it will attract the readers you want to reach.

Many consumer direct marketers set their front end offer prices high enough to cover their costs, yet low enough to generate a maximum number of responses. Free offers will produce even more responses, but they have two drawbacks. First, they don't give you income to offset your front end costs. Real estate agents have a further back end market among people who have bought or sold homes through them before.

Second, when people respond to a free offer, they're not truly customers yet because they haven't bought anything. Conversion of someone who responded to a free offer may be more difficult than selling to someone who has already purchased from you. Low priced or free front end offers in consumer and business to business marketing are referred to as lead generation programs.

Back end marketing is more efficient than prospecting. Response rates are usually much higher. You will obtain more orders at a lower cost than just about any front end idea you may come up with. Back end selling (to house lists) costs less than using outside lists or buying print ad space in publications to sell to first time buyers. Front end strategies for small business people vary depending on the field of business.

Among some common free lead generation offers are the seminars conducted by stockbrokers and real estate investment counselors and free gifts from builders to homeowners who order cost estimates for additions or improvements. People who respond are reached later via mail or phone or in person. Real estate agents offer free market evaluations of homes to find people who are thinking about selling.

Cosmetic jewelry, inexpensive clothing and accessory items, and low cost trial subscriptions are common front end offers.

Response Makers - Targeted Leads