Subject: Direct Mail Input
From: "Skip Lockwood" <[email-masked]>
To: "Mr. Hunter Biden" <[email-masked]>, "Dr. Thomas Moody" <[email-masked]>, "Mr. Tom Quinn" <[email-masked]>, "Mr. Jonathan Schwartz" <[email-masked]>
Cc: "Anne Marie Person" <[email-masked]>, "Sherry Wilson" <[email-masked]>, "Jamie Bearse" <[email-masked]>, "Kathy Costigan" <[email-masked]>
Date: Fri, 17 Feb 2012 10:49:26 -0500

All,

Attached are five documents detailing the latest information and
projections from our direct mail program vendor Lautman, Maska, Neill &
Company.  In order to understand the full narrative you must read look at
the excel files in order.  The original budget projection is entitled "2012
ZERO Budget Draft."  This is the document we used in November to plan for
2012.  In January we received the "2012 ZERO Budget DRAFT 2"  markedly
altering the projections, especially in the area of income.  Finally, late
last week we received "2012 ZERO 6 month Retest Budget"  which markedly
alters both income and expense.  Additionally I have included the latest
strategy update memo that was sent to Ron, Jamie and me.  Please have a
look at these documents.  We would like your input on whether or not we
should continue down this path.

Building ZERO's individual giving base is essential to the economic health
of the organization.  In order to build that base we embarked on a
2-pronged strategy.  Prong one focused on pursuing a traditional direct
mail marketing campaign.  Prong 2 focused on social media generally and
Facebook specifically.  If money were no object I would have no hesitation
arguing that we follow both prongs to their conclusion.  However, money is
an object and we have difficult choices to make.  Here is the comparison as
I see it between direct mail and Facebook.  The file "ZERO 2011 Interim
Summary" will let you see how Lautman went through its process and will
give you some of the data that they used in evaluating the direct mail
program.  I have enclosed the Facebook bullets below.

FACEBOOK

  ZERO acquired 14,000-plus “likes” on a $60,000 budget.  A "like" is an
opt-in to our Facebook mailing list

Spent approximately $4 per “like” (gross, not including funds Facebook
helped garner)

Overwhelming majority of Summit attendees were from Facebook (approximately
110)

Serves as an access point for sponsors (Facebook plays a role as value
added in clinical trial recruitment and communication partnerships in 2011
which equaled $46K from February 1, 2011 to January 31, 2012)

Helped us find friend-raisers and new donors. It’s difficult to determine
an exact amount but it’s in excess of $30K through people hosting events,
signing up for an endurance team or just making a donation

20-plus new engaged advocates/ambassadors found during the first two months
of 2012

ZERO is the leading prostate cancer group in social media and Google has
recently announced that social media posts will now be added into Google's
search modality.

**
In summary,  we spent $60K on Facebook and received about $76K income
roughly.  ($46K for clinical trial recruitment/$30K in general donations)
for a net benefit of about $16K give or take a couple of thousand.
Moreover, we added 14K names to the "list" and have cultivated 20
high-interest operators in addition to securing endurance team participants
and more than 100 attendees to the Summit to End Prostate Cancer.  Cost per
"like"  $4 and probably a couple bucks more to translate some of them into
donors/operators/endurance team participants.

By contrast we will spend $100K with Lautman, expect to acquire 613 donors
for total projected revenue of $26,250 for a loss of $73K.  Cost per donor
= $1,244.44.  Estimated time to profitability on direct mail has shifted
from 3 years to 5 years.

This is an issue that is already on the Board agenda and I wanted to make
sure that the members of the Finance Committee are fully briefed.

Don't hesitate to call with questions.

Best,

--Skip
**

-- 
Skip Lockwood
President and CEO
ZERO -- The Project to End Prostate Cancer
10 G St., NE
Suite 601
Washington, DC 20002
202-463-9455 (main)
202-463-9456 (fax)

Virginia Office:
515 King St.
Suite 420
Alexandria, VA 22304

www.zerocancer.org
Twitter:  www.twitter.com/digitalskip
Facebook:  ZERO — The Project to End Prostate Cancer
Combined Federal Campaign #12161
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