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Pro's & Con's of Direct Mailing Industry

Can anyone share they experience with the direct mailing industry? Looking at a franchise and wondering if I should pursue more info.

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The BAF Group LLC

My limited experience is that it is an industry that is eroding. I have been asked to list two fairly large DM companies that have seen their incomes reduced over the past two years, because of the public distaste for DM, the increasing cost of postage and the increased use of in-house, desktop publishing. The ones that are still alive and kicking seem to be the mammoth DM companies, dealing with only the largest of clients.

As a Business Broker, I am frequently asked whether it is better to startup a new operation, or buy a mature business. My suggestion is always: What is the cost of both, and what is the most financially beneficial? This is one of those classic deals. Startup could be extremely difficult and expensive if the only way to survive is through having a mammoth company. But purchasing an ongoing operation may be difficult and terribly risky, for the exact same reason.

Nov 16, 2009

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