The Lead Generation Conundrum for Small Businesses

One of the most effective lead generation methods is direct mail … however direct mail works best when followed up with telemarketing. The national average response rate to a direct mail campaign is .5%. A direct mail campaign followed up with telemarketing yields an average response rate of 2%. Keeping these averages in mind, a direct mail campaign to 1,000 prospects followed by telemarketing could result in 20 potential leads.

The Challenge

Many small businesses do not have the financial resources to launch a large campaign, nor do they have the human resources required to conduct necessary follow-up on leads generated. Unfortunately, most mail houses and telemarketing firms are set up to make their profits on larger scale campaigns. For example:

· Most of the big telemarketing firms charge start up fees and have large minimum project requirements such as 100 hours. With the average telemarketing services costing $45 to $60 per hour, a 100 hour campaign can cost anywhere from $4,500 to $6,000 in addition to start-up fees. The up-front cost is often too much of a financial burden for a smaller company to bear at one time.

· Depending on volume, mailing houses will charge anywhere from $.75 to $1.95 or more to print and mail a letter or post card. This can add an average of $1,500 to the budget.

Some smaller companies may attempt to do the printing and mailing in house but find that time and equipment is not adequate for a large scale project. Additionally, others may attempt to do telemarketing in house only to find it to be a frustrating and time consuming effort.

As a result of the financial and human barriers, many small businesses forego direct mail and telemarketing lead generation campaigns, thus providing opportunities for their competitors to gain those valuable leads.

The Solution

The Spectrum Services Group offers a solution to the overwhelming challenge of conducting a lead generation campaign that is financially feasible and sustainable. Our solution provides an affordable, on-going lead generation process that is designed to keep a steady trickle of incoming prospects which is manageable from both a time, as well as a financial standpoint. Our solution follows three basic principles:

1. Rather than purchasing a large list focused on a broad range of businesses, buy a smaller and more focused list that matches your criteria for the ideal client. Once the list is purchased, break it down into manageable chunks based on the number of prospects you can handle. For example, a direct mail and telemarketing campaign on a list with 600 names can be broken down into 100 names over a six month time frame.

2. Rather than paying premium printing fees by outsourcing printing costs, make the printing cost more manageable by keeping it in-house. Most clients can manage the printing and mailing of 50-200 letters per month along with the cost, which typically doesn’t exceed $.60 – $.75 for postage, paper, envelopes and use of the printer. However, if you prefer to outsource your printing, The Spectrum Services Group can provide small scale print and mailing services.

3. Finally, The Spectrum Services Group offers a boutique telemarketing service that can manage your small scale campaigns. Our group of TeleSpecialists present themselves as if they are calling from your office and represent your company accordingly. They are motivated by your success in generating prospects, not by “bonuses” or sales commissions. With our personable approach to TeleServices, the prosepects that you receive from our TeleSpecialists are neither forced nor contrived.

We can help you refine your target market, develop a direct mail letter and, in many cases offer the fulfillment piece. Overall, our clients have seen terrific results. Although there are no response rate guarantees, The Spectrum Services Group consistently beats the 2% average response rate. Response rates vary depending on market saturation, offer focus, and time of year among other variables.


It is not our intention to compete with the large telemarketing firms, nor do we have the capacity to do so. We have a 750 name maximum per client, per month, and will happily accept campaigns as small as 50 names. Contact us today for a quote on your lead generation project!

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