DMRG comment:   The Offer can account for 25 percent or more of the impact on results.  Of all impact that marketers can control and apply to improving marketing response, two factors combined account for 80 percent or more of that impact - targeting the right audience and The Offer.  Whenever there's the challenge "we need to come up with some offers to test", you may find re-reading this article can help.

Appeal and Offer Development - 
99 Proven Direct Response Offers

THE offer will usually make more difference in results than the copy that tells your story, the graphics that display your product, or the format you use. Here's a checklist of tested, successful propositions that can boost results.

Importance of the Offer                                                                                                                                                                Check List Of Offers

The offer is one of the simplest and most dramatic ways to improve direct marketing results. But let's start with the basics. 

What is the offer? It's simply your proposition to the prospect or customer. What you will give the prospect in return for tak­ing the action your mailing or ad requests the prospect to take.

What does it include? Your product or service...the price and payment terms.. .any incentives you're willing to throw in (like a free gift)...and any specific conditions attached to the offer. Sometimes the offer includes free literature or booklets as a first step toward getting your product or service.

Why is the offer important? Because the right offer can sell almost anything.

Because it can mean the difference between the success and failure of a promotion. Because it can make a successful promotion dramatically more successful!

To illustrate the possible improvement in results, I've seen numerous examples such as: A 50 cent free gift that improved response 49 percent for a travel organization selling $95 memberships; sweepstakes that have consistently boosted catalog results 30% to 50%; a free trial offer working 77% better than the same $9.95 item offered only on a cash-with-order basis; and one premium offer pulling 51% better than another, even though it was less costly for the advertiser.

Relate The Offer To Your Objective

The first step in planning an offer is to think about your objective. Are you trying to get orders by mail? Produce more sales leads? Sell subscriptions? Raise funds? If your print ads or mailings are designed to produce any type of immediate response, the offer should be carefully planned to help you accomplish that objective.

The more attractive you can make your offer, the better your response will be. So your goal is to come up with the most attractive offer you can afford. One that will melt away human inertia and get people to act. But please note that I didn't say the most attractive offer possible. I said the most attractive offer you can afford.

Let's spend a minute on the economics of an offer. Without going into great detail, it's important that you realize that your advertising program includes both fixed and variable costs. Let's take direct mail, for example. Fixed costs are such things as postage, list rental, and production of a given mailing package. Variable costs change depending on the number of responses you get like merchandise, free gift, and fulfillment costs.

You can usually "sweeten" your offer and make it more attractive without increasing your fixed costs. But, on the other hand, the cost of an incentive (like a free gift) normally has to be applied to all orders. If a $1.00 free gift improves your results from 10 to 13 orders per thousand, you incur the free gift cost for all 13 orders - not just the 3 additional orders. So how does this affect your profit? It depends on such things as your order margin, what you spend on the gift, and how much it improves your response.  (email us for a free description of how to calculate order margin). 

The best or most successful offer is not necessarily the most expensive one. But even if you do increase your cost - by throwing in an incentive like a free gift - the objective is to increase response more than enough to offset the added costs, so that your cost-per-order or cost-per-inquiry is lower than it was without the free gift. And if you plan your offers carefully, with budget in mind, that's exactly the way they can turn out.

A Checklist of Proven Offers

In putting together the following list, I was frankly surprised to see how many direct response offers and variations there really are. So I have tried to group them into logical categories.  

(Resist the temptation to read only the offer types that seem to interest you.  Reading the whole article doesn't take much longer and your "creative juices" will be more stimulated to formulate your own effective offers.) 

Some of the offer examples that follow are admittedly rather specialized offers that only fit certain types of products or services, but all of them are proven offers that have worked successfully for other direct response advertisers. 

As you review them, keep in mind that you are not just limited to one offer. You can often combine two or more of these into one master offer.

Basic Offers                    To Offer Type List

1. Right Price-The starting point for any product or service being sold by mail. Consider your market and what's being charged for competitive products. And make sure you have sufficient margin for your offer to be profitable. Most products sold by mail require at least a 3-time markup.

2. Free Trial - If mail order advertisers suddenly had to limit all their efforts to one type of offer, this would no doubt be the choice - widely used for book and merchandise promotions. Looking at it from the consumer's standpoint, the free trial relieves the fear that you might get stuck buying by mail because the advertisers willing to let you try his product before he gets your money. Most free trial periods are 1O or 15 days. But the length of the trial period should fit the type of product or service being offered.

3. Money-Back Guarantee - If for some good reason you can't use a free trial offer, this is the next best thing. The main difference is you ask the customer pay part or all of the purchase price before you let him try your product. This puts inertia on your side. The customer is unlikely to take the time and effort to send a product back unless he's really unhappy with it.

4. Cash with Order - This is the basic payment option used with a money back guarantee. It's also offered with a choice of other payment options. Incentives (such as paying the postage and handling charge) are often used to encourage the customer to send his check or money order when he orders.

5. Bill Me Later - This is the basic payment option used with free trial offers. The bill is usually enclosed with the merchandise or follows a few days later. And it calls for a single payment. Because no front end payment is required by the customer, the response can be as much as double that of a cash offer.

6. Installment Terms - This payment option works like the one above, except that it usually involves a bigger sale price with installment terms set to keep the payments around $10 to $20 per month. Usually a necessity to sell big ticket items by mail.

7. Charge Card Privileges - Offers the same advantages of "bill me later" and installment plans, but the seller doesn't have to carry the paper. Can be used with bank charge cards, travel and entertainment cards, and specialized cards (like those issued by the oil companies).

8. C.O.D.-This is the Postal Service acronym for Cash-On-Delivery. The mail man collects when he delivers the package. Not widely used today because of the added cost and effort required to handle C.O.D. orders.

Free Gift Offers                   To Offer Type List

9. Free Gift for an Inquiry-Provides an incentive to request more information about a product or service. Usually increases inquiries, though they become somewhat less quali­fied.

10. Free Gift for a Trial Order - Commonly called a "keeper" gift because the customer gets to keep the gift just for agreeing to buy the product.

11. Free Gift for Buying - Similar to the above, except the customer only gets to keep the gift if he buys the product or service. The gift can be given free with any order, tied to a minimum purchase, or used as a self-liquidator.

12. Multiple Free Gifts with a Single Order - If one gift pays out for you, consider offering two or more. You may even be able to offer two inexpensive gifts and spend the same as on one more expensive item. The biggest user of multiple gifts is Fingerhut Corporation. At last count, they were up to four free gifts for a single order!

13. Your Choice of Free Gifts - Can be a quick way to test the relative appeal of different gift items. But will seldom work as well as the best gift offered on its own. The choice probably leads to indecision on the consumer's part.

14. Free Gifts Based on Size of Order - Often used with a catalog, or merchandise that lends itself to a quantity purchase. You can offer an inexpensive gift for orders under $10.00 a better gift for orders running between $10.00 and $25.00; and a deluxe gift for orders over $25.00.

15. Two-Step Gift Offer - Offers an in­expensive gift if customer takes the first step, a better gift for taking the second step. Such as a free record album for trying a new stereo set, and a deluxe headset if you elect to buy it.

16. Continuing Incentive Gifts - Used to get customers to keep coming back. Book clubs often give bonus coupons to save up for additional books. Another example is silverware, with one free place setting per order.

17. Mystery Gift Offer - Sometimes works better than offering a specific gift. It helps if you can give some indication of the item's retail value.

Other Free Offers                   To Offer Type List

18. Free Information - Certainly an inexpensive offer and a very flexible one. The type of information you provide can range from a sample product catalog sheet to a full- blown series of mailings. If the information is not going to be delivered by a salesman, this should be emphasized.

19. Free Catalog-Can be an attractive offer for both the consumer and the business market. In the business field, catalogs are often used as buying guides and saved for future reference. In the consumer field, you can often attach a nominal charge for postage and handling or offer a full year's catalog subscription.

20. Free Booklet - Helps establish your company's expertise and know-how about the specific problems of your industry. Especially if the booklet contains helpful editorial material and is not just a commercial for your product or service. The booklet should have an appealing title, like "How to Save Money on Heating Costs"" or "29 Ways to Improve Your Quality Control System."

21. Free Fact Kit - Sometimes called an Idea Kit It's usually put together in an attractive file folder or presentation cover. You can include a variety of enclosures from booklets to trade paper articles to ad reprints.

22. Send Me a Salesman - This one is included here because the offer is actually a free sales call with wording like "have your representative phone me for an appointment" Normally produces more qualified inquiries than a free booklet or fact kit. Those who respond are probably ready to order or seriously considering it.

23. Free Demonstration - Important for things like business equipment that has to be demonstrated to be fully appreciated. If the equipment is small enough, it can be brought into the prospect's plant or office. If not, he might be invited to a private showing or group demonstration at the manufacturer's facilities. 

24. Free "Survey of Your Needs" - Ideal for some industrial products or services. Like a company that sells chemicals for various water treatment problems. Offering a free survey by a sales representative or technical expert is appealing, and gives you the opportunity to qualify a prospect and see if your product or service really fits his needs.

25. Free Cost Estimate - Many large industrial sales are only made after considerable study and cost analysis. The offer of a free estimate can be the first step in triggering such a sale.

26. Free Dinner - Like the rest of the offers that follow in this section, this one is particularly suited to certain types of direct marketing companies. It's widely used by real estate or land companies who offer a free dinner at a nearby restaurant Those who attend also get a sales presentation on the property.

27. Free Film Offer - Many mail order film processing companies have been built with some variation of this offer. Either the customer gets a new roll of film when he sends one in for processing, or the first roll is offered free, in hopes that it will be sent back to the same company later for processing.

28. Free House Organ Subscription - Many industrial companies put out elaborate house organs for customers and prospects which contain a good deal of helpful editorial material. You can offer a free sample issue. Or better yet, a year's subscription.

29. Free Talent Test - Popular with home study schools. Especially those that offer a skilled course, such as writing or painting. Legal restrictions require that any such test be used to measure real talent or ability, not just as a door-opener for the salesman.

30. Gift Shipment Service - This is one of the basic appeals of offers used by virtually all mail order cheese and gift food firms. You send them your gift list, and they ship direct to the recipients at no extra cost.

Discount Offers                   To Offer Type List

31. Cash Discount - This is the basic type of discount. It's often dramatized by including a discount certificate in the ad or mailing. However, it should be tested carefully. In most cases, a discount offer will not do as well as an attractive free gift with the same value.

32. Short-Term Introductory Offer - A popular type of discount used to let somebody try the product for a short period at a reduced price. Examples include: "Try 10 weeks of the Wall Street Journal for only $5.97" and "30 days of accident insurance for only 25 cents". It's important to be able to convert respondents to long team subscribers or policyholders.

33. Refund Certificate - Technically speaking, it's a delayed discount. You might ask somebody to send $1.00 for your catalog and include a $1.00 refund certificate good on his first order. The certificate is like an un cashed check - it's difficult to resist the urge to cash it.

34. Introductory Order Discount - A special discount used to bring in new customers. Can sometimes cause complaints from old custom ­ as if they're not offered the same discount.

35. Trade Discount - Usually extended to certain clubs, institutions, or types of businesses.

36. Early Bird Discount - Designed to get customers to stock up before the normal buying season. A great many Christmas cards and gifts have been sold by mail with this offer.

37. Quantity Discount - This discount is tied to a certain quantity or order volume. The long - term subscriptions offered by magazines are really a quantity discount. The cost per copy is usually lower on a two year subscription because it represents a quantity purchase - 24 issues instead of

38. Sliding Scale Discount - In this case, the amount of the discount depends on the date somebody orders or the size of the order. Such as a 2% discount for orders up to $50, a 5% discount for orders over $50, and a 10% discount for orders over $100.

39. Selected Discounts - These are often sprinkled throughout a catalog to emphasize certain items the advertiser wants to push or give the appearance that everything is on sale.

Sale Offers                   To Offer Type List

40. Seasonal Sale - Such as a Pre -Christmas Sale or a Summer Vacation Sale. If successful, they are often repeated every year at the same time.

41. Reason - Why Sales - This category includes Inventory Reduction, Clearance Sales, and similar titles. These explanatory terms help give the sale areas on for being and make it more believable to the prospect.

42. Price Increase Notice - A special type of offer that's like a limited time sale. Gives customers a chance to order at the old prices before increases become effective.

43. Auction-By-Mail - An unusual type of sale. Has been used to sell such items as lithographs and electronic calculators when quantities were limited. Customers send in a "sealed bid," with merchandise usually going to the highest bidder.

Sample Offer                   To Offer Type List

44. Free Sample - If your product lends itself to sampling, this is a strong offer. Sometimes you can offer a sample made with or by your product. Such as a steel company who uses take apart puzzles made from their steel wire. Or a printer who offers samples of helpful printed materials it has produced for other customers.

45. Nominal Charge Samples - In many cases making a nominal charge for a sample - like 10 cents, 25 cents, or$ 1.00 will pull better than a free sample offer. The charge helps establish the value of the item and screens out some of the curiosity seekers.

46. Sample Offer with Tentative Commitment - This is also known as the "complimentary copy" offer used by many magazines. In requesting the sample, the prospect is also making a tentative commitment for a subscription. If he doesn't like the first issue, he just writes "cancel" on the bill and send sit back. But legal precautions are advised; your legal counsel should review this offer before you actually make it.

47. Quantity Sample Offer - A specialized offer that's worked well for business services and newsletters. Such as a sales training bulletin, where the sales manager is told to "just tell us how many salesmen you have, and we'll send a free sample bulletin for each one."

48. Free Sample Lesson - This has been widely used by home study schools who offer a sample lesson to demonstrate the scope and content of their courses.

Limited Time Offers                   To Offer Type List

49. Limited Time Offers - Any limited time offer tends to force a quick decision and avoid procrastination. It's usually best to mention a specific date such as "this special offer expires November 20th" rather than "this offer expires in l0 days."

50. Enrollment Periods - Have been widely used by mail order insurance companies who include a specific cut off date for the enrollment period. It implies there are savings involved in processing an entire group of enrollments at one time.

51. Pre-Publication Offer - Long a favorite with publishers who offer a special discount or savings before the official publication date of a new book. The rationale is that it helps them plan their printing quantity more accurately.

52. Charter Membership (or Subscription) Offer - Ideal for introducing new clubs, publications, and other subscription services. Usually includes a special price, gift, or other incentive for charter members or subscribers. And it appeals to those who like to be among the first to try new things.

53. Limited Edition Offer - A relatively new direct response offer. But a proven way for selling coins, prints, and other collectable items.

Guarantee Offers                   To Offer Type List  

54. Extended Guarantee - Such as letting the customer return a book up to a year later. Or with a magazine, offering to refund the unexpired portion of a subscription anytime before it runs out.

55. Double-Your-Money-Back Guarantee - Really dramatizes your confidence in the product, but, if you make an offer like this, it better live up to your advertising claims.

56. Guaranteed Buy-Back Agreement- While it's similar to the extended guarantee, this specialized version is often used with limited edition offers on coins and art objects. To convince the prospect of their value, the advertiser offers to buy them back at the full price during a specified period that may last as long as 5 years.

57. Guaranteed Acceptance Offer - This specialized offer is used by insurance firms with certain types of policies that require no health questions or underwriting. It's especially appealing to those with health problems who might not otherwise qualify.

Multi Offers                   To Offer Type List

58. Multi product Offers - Two or more products or services are featured in the same ad or mailing. Maybe you've never thought about it this way, but the best-known type of multi product offer is a catalog which can feature a hundred or more items.

59. Piggyback Offers - Similar to a multi product offer, except that one product is strongly featured. The other items just kind of ride along, or "piggyback," in the hopes of picking up additional sales.

60. The Deluxe Offer - A publisher might offer a book in standard binding at $9.95. The order form gives the customer the option of ordering a deluxe edition for only $2.00 more. And it's not unusual for 10% or more of those ordering to select the deluxe alternative.

61. Good-Better-Best Offer - This one goes a step further by offering choices. The mail order mints, for example, sometimes offer their medals in a choice of bronze, sterling silver, or 24K gold.

62. Add On Offer - A low-cost item that's related to the featured product can be great for impulse orders. Such as offering a wallet for $7.95 with a matching key case offered for only $1.00 extra.

63. Write-Your-Own-Ticket Offer - Some magazines have used this with good success to build up the sale. Instead of offering 17 weeks for $4.93 - which is 29c per issue- they give the subscriber the 29c per issue price and let him fill in the number of weeks he wants his subscription to run.

64. Bounce-Back Offer - This approach tries to build on to the original sale by enclosing an additional offer with the product shipment or invoice.

65. Increase and Extension Offers - These are also follow-ups to the original sale. Mail order insurance firms often give policy holders a chance to get increased coverage with a higher-priced version of the same policy. Magazines often use an advance renewal offer to get subscribers to extend their present subscription.

Sweepstakes Offers                   To Offer Type List

66. Drawing Type Sweepstakes - The majority of sweepstakes contests are set up this way. The prospect gets one or more chances to win. But all winners are selected by a random drawing.

67. Lucky Number Sweepstakes - With this type of contest, winning numbers are pre selected before making the mailing or running an ad. Copy strategy emphasizes, "you may have already won." And if winning numbers are not actually entered or returned, a drawing is held for the unclaimed prizes.

68. "Everybody Wins"" Sweepstakes - No longer widely used, but a real bonanza when this offer was first introduced. The prize structure is set up so the bottom or low-end prize is a very inexpensive or nominal one. And it's awarded to everyone who enters and doesn't win one of the bigger prizes.

69. Involvement Sweepstakes - This type requires the prospect to open a mystery envelope, play a game, or match his number against an eligible number list. In doing so, he determines the value of the grand prize he wins if his entry is drawn as the winner. Some of these in­volvement devices have been highly effective in boosting results.

70. Talent Contests - Not really a sweepstakes, but effective for some types of direct marketing situations. Such as the mail order puzzle clubs and the "draw me" ad which offers a free scholarship from a home study art school.

Note - chance promotions are locally and agency regulated. Always be sure your offer is within guidelines. Legal review is advised.

Club & Continuity Offers                   To Offer Type List

71. Positive Option - You join a club and are notified monthly of new se­lections. To order, you must take some positive action - such as sending back an order card.

72. Negative Option - You are still notified in advance of new selections. But under the terms you agreed to - when joining, the new selection is shipped unless you return a rejection card by a specific date.

73. Automatic Shipments - This variation eliminates the advance notice of new selections. When you sign up, you give the publisher permission to ship each selection automati­cally until you tell him to stop. It's commonly called a "Till Forbid" offer.

74. Continuity Load - Up Offer - Usually used for continuity book series, like a 20-volume encyclopedia. The first book is offered free. But after you receive and pay for the next couple of monthly volumes, the balance of the series is sent in one load-up shipment. However, you can continue to pay at the rate of one volume per month.

75. Front-End Load-Up Offer - This is when a record club gives you 4 records for $1.00 - if you agree to sign up and accept at least 4 more selections during the next year. The attractive front-end offer gets you to make a minimum purchase commitment. And the commitment usually has a fixed time period for buying your remaining selections.

76. Open - Ended Commitment - Like the front-end load-up, except that there is no time limit for purchasing your four additional selections.

77. "No Strings Attached" Commitment - Like the above two offers, except it's more generous because you are not committed to any future purchases. The publisher gambles that you will find future selections interesting enough to make a certain number of purchases.

78. Lifetime Membership Fee - You pay a one-time fee to join - usually $5.00 $l0.00-and get a monthly announcement of new selections. But there's no minimum commitment, and all ordering is done on a positive option basis.

79. Annual Membership Fee - Here you pay an annual fee for club membership. It's often used for travel clubs, and you get a whole range of benefits, including travel insurance. Also used for fund raising, when a choice of membership levels is often effec­tive.

Specialized Offers                   To Offer Type List

80. The Philanthropic Privilege - This is the basis of all fundraising offers. The donor's contribution usually brings nothing tangible in return - but helps make the world a better place in which to live. Sometimes enhanced by giving gummed stamps, a membership card, or other tokens of appreciation.

81. Blank Check Offer - First used in the McGovern fund-raising campaign. Supporters could fill out blank, post-dated checks which were cashed one-a-month to provide installment contributions. Later adapted for extending credit to bank charge card customers.

82. Executive Preview Charge - A successful offer for such things as sales training films. Executive agrees to pay $25 to screen or preview the film. But if he decides to buy or rent it, the preview price is credited against the full price.

83. Yes / No Offers - Asks prospect to let you know his decision either way. In most cases the negative responses have little or no value. But by forcing a decision, you often end up with more "yes" responses.

84. Self-Qualification Offer - Uses a choice of options to get the prospect to indicate his degree of interest in your product or service. Such as offering a free booklet or a free demonstration. Those who request the latter qualify themselves as serious prospects and should get more immediate attention.

85. Exclusive Rights for Your Trading Area - Ideal for selling some business services to firms who are in a competitive business. Such as a syndicated newsletter that a bank buys and sends to its customers. You give the first bank that responds an exclusive for its trading area. The number that order is such that you seldom have turn any body down.

86. The Super Dramatic Offer - Sometimes very effective. Such as the offer to "smoke my new kind of pipe for 3O days. If you don't like it, smash it up with a hammer and send back the pieces."

87. Trade-In Offer - An offer like "we'll give you $10 for your old slide rule when you buy a new electronic calculator can be very appealing.

88. Third Party Referral Offer - Instead of renting somebody's list, you get the list owner to make a mailing for you - over his name - and recommend your product or service. Usually works better than your own promotion because of the rapport a company has with its own customers.

89. Member-Get-A-Member Offer- Often used to get customers to send in the names of friends who might be interested. Widely used by book and record clubs who give their members a free gift if he gets a new member to sign up.

90. Name-Getter Offers - Usually designed for building a prospect list. A firm can offer a low-cost premium at an attractive self-liquidating price.

91. Purchase-With-Purchase - Widely used by cosmetic firms and department stores. An attractive gift set is offered at a special price with a regular purchase.

92. Delayed Billing Offer - The appeal is "Order now and we won't bill you until next month." Especially effective before the holidays, when people have lots of other expenses.

93. Reduced Down Payment - Frequently used as a follow-up in an extended mailing series. If customer does not respond to the regular offer in previous mailings, you reduce the down payment to make it easier for him to get started.

94. Stripped-Down Products - Also used in an extended mailing series. A home study school, for example, that doesn't get the prospect to order the full course will come back with a starter course at a lower price.

95. Secret Bonus Gift - Usually used with TV support. The commercial offers an extra bonus gift not mentioned in the ad or mailing being supported. Such as offering a bonus record if you write the album number in the "secret gold box" on the order form

\96. Rush Shipping Service - An appealing offer for things like seasonal gifts and turn processing. Sometimes the customer is asked to pay an extra charge for this rush service.

97. The Competitive Offer - Can be a strong way to dramatize your selling story. Like Diner's Club offering to pay prospects $5.00 to turn in their American Express card.

98. The Nominal Reimbursement Offer - Used for research mailings. A token payment is offered to get somebody to fill out and return a questionnaire.

99. Establish-the-Value Offer - If you have an attractive free gift, you can build up its value and establish credibility by offering an extra one for a friend at the regular price.

There you have it!  Probably the most complete list of successful direct response offers ever put together. One or more of them should be ideal for your product or service.

Again, the author is Jim Kobs, listed as Chairman of Kobs, Gregory and Passavant, Chicago IL. The article is excerpted by DMA from Profitable Direct Marketing by Jim Kobs, published by Crain Books, 740 Rush Street, Chicago, Illinois 6O6ll.  

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