co op advertising program

How to Make Money with A Co-Op Advertising Program

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(Last Updated On: June 5, 2022)
A well thought, strategic co-op advertising program can give you a lot of money. Apart from advertising, the most significant cost in the mail order firm is postage. This implies that almost everyone in the mail-order business is looking for methods to save money when it comes to sending their sales pitches out to prospects. Co-op mailings are the answer. This article will let you know some tips on a co-op advertising program, and how to capitalize it.

A typical co-op mailing service operates like this: A person who wants to sell anything by mail sees an advertisement urging them to send their circulars or brochures to a co-op mailing service.

These circulars or brochures are sent to the co-op mailing service, which employs housewives or disabled individuals to fold and put them into envelopes before sending them. They charge anything from $10 to $100 per thousand for this service, which is an excellent price for the sender.

Naturally, the co-op mailer can’t do this and generate any money unless each envelope contains a number of circulars or brochures from many clients. And that’s how he makes his money: he stuffs 10 to 16 of these circulars inside each envelope. Consider the math: Let’s say he charges 12 individuals $50 per thousand for folding and stuffing their circulars in his own outgoing mail.

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How to Make Money with A Co-Op Advertising Program

He utilizes his own mailing lists, so there’s no major cost there—but he does have to pay for people to fold and stuff envelopes until he’s got it sorted where he and his family do it himself… People that fold and stuff circulars are paid around $20 per thousand… And it will cost $110 to bulk rate 1,000 envelopes… You’ve got a total overhead of $142 if you add in approximately $12 in 1,000 envelopes… Subtract that amount from the $600 he received, and you have a profit of $458… Not bad for a letter…

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