How to Profit from a Predictable 99% Failure Rate

Jan. 14, 2013 - PRLog -- As strange as this may sound, calculating on a huge failure rate is how advertising in volume works. It is not by design, but from the response rate expectations, that advertising in volume is done and predicted.  

After years of printing for a commercial printing company and seeing literally millions of copies being produced on a daily basis, it finally made sense to me that it is all a calculated expectation from large retail businesses that they continue to print in mass quantity even though the response rate is calculated to be at or around one percent. Why would they pay good money for a one percent response?

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Based on this staggering statistic one can assume that from a subscriber rate of 100,000 potential customers or viewers of a printed circular, and only 1 percent actually make a purchase, the ratio will produce 1,000 sales.  That is how volume advertising works.  

Just for humor, that could explain why my fishing ratio is so wrong. That is one advertisement, my lure, going up against 100,000 fish in the lake. So, which makes more sense? exactly. Even though there is a 99% failure rate, the end result is in a ratio of closed sales that justifies the method. That equates to 100,000 lures to catch 1,000 fish, hmm, not too bad when you look at it that way.

Now, take the volume advertising approach and do this daily or weekly from the same business and you now understand why your mailbox stays filled with advertisements. While you may not want, need, or choose to make a purchase today, tomorrow or next week you might just be influenced from the ads you are exposed to and make a purchase.

Commercials on TV are very similar in nature but they use visual and music attractions to lure you to make purchases. The response ratio must be similar, but the end result of actual sales is what matters. Take for instance a hot juicy smothered hamburger with all the right trimmings you desire, is flashed before you, being consumed by a very attractive male or female at just the right time of day when you are considering lunch or dinner? Think that may have a psychological effect on what hamburger joint you choose? exactly.

So, what have we learned? Volume advertising works. What have we yet to determine? Cost of volume advertising and where to get the best deals on reaching a predictable audience is the only thing left to discover so that we can apply this type of advertising in order to sell virtually any product we choose.

After all, people will buy anything, that is a given. Finding the right number of people to be reached with your advertising is the key to your success.