Insurance companies rarely pay fair and hand over a fair reward! They must be hammered and hammered before they write a check! I’m Jim Adler, the TEXAS HAMMER! And I get results! I hammered and got a client $140,000 after she fractured her back and had a collapsed lung! The proof is in the money!
Call me right now! It’s HAMMER time!”
We’ve all seen them: late night lawyer ads. If you’re like me you’ve probably fallen asleep on the couch during Game 4 of the NBA conference finals only to be woken up to their obnoxious tone. In a semi-consciousness state of mind it’s easy to assume that what you’re seeing isn’t really… real. How could it be? Who pays money to produce commercials like that? There’s no way those can work. Right?
Here’s three reasons why they work:
1. THEY’VE TARGETED THEIR AUDIENCE.
If you’ve been in a car accident and are in pain, the chances of you being awake at night watching television skyrocket. That’s just the facts. If you’ve been in any kind of chronic pain you know that you easily could find yourself on the couch at 2:30 a.m. flipping through the channels trying to get your mind off it. That’s the demographic of people watching television late at night.
Injury lawyers know this. They’ve known it for years. It may not be the sexiest of ponds, but there are a lot of fish.
We all know the old real estate adage, “Location, location, location.” It’s the same in marketing, “Are we fishing in a pond with a lot of fish?” Are we marketing where people are at?
2. IT ONLY TAKES A FEW CASES TO COVER THEIR COSTS.
Most personal injury lawyers are going to charge a contingency fee of between 33% — 40%. With the average injury settlement coming in at $90,000, they’ll pocket $30,000 — $36,000.
A minimum television buy during those hours — a package just enough to get you in the game — probably runs between $18,000 — $20,000 depending on the frequency, channels, etc. Some of these guys could easily spend upwards of $100,000 to cover the entire year and saturate their market.
So do the math. Jim Adler does a $80,000 media buy that ensures he’s the household name in his area for the entire year. Plus, $18,000 for a production company to product 6 different commercials throughout the year. How many cases does he have to settle to break even? Three? Four? Even at that, he’s created name recognition that will last way beyond his media buy and translate into other areas (i.e. billboards are now exponentially more effective once people have seen a commercial). Plus, what are the odds that within that year, he gets a really big case that covers the entire cost? It’s easy to see why these commercials make sense.
Marketing is a game of math and science. It’s knowing three things:
A. The total investment.
B. The return percentage.
C. The projected revenue.
We know direct mail has a .25% — .50% return rate (that’s right… one quarter of one percent). To launch a seasonal campaign in a mid-market city, you’ll have to budget somewhere between $25,000 — $40,000. So is direct mail good for you? We have to decide if a .25% response rate generates enough revenue to cover your investment. That means if you send out 30,000 pieces, only 75 people respond. If you’re a cosmetic surgeon, maybe it makes sense. If you’re a local antique dealer, maybe not.
3. GIMMICKY MARKETING GETS ONE-TIME, NON-LOYAL CUSTOMERS.
How many times in your life are you going to be injured in a car accident and hire an injury attorney? For most Americans, the answer is very few. Since that’s the case, injury lawyers can be as gimmicky as possible. They only need one purchase.
Here’s what we know about marketing to one-time purchasers (think infomercials):
A. Be as gimmicky as possible.
B. Do whatever you can to sell the product.
C. You only need one sale.
D. Move on to the next person.
On the other hand, as customer loyalty becomes more of a factor, brand value increases. Think Apple. They don’t want one iPhone purchase. They want you buying an iPhone, then purchasing music from iTunes, then add an iPad, the App Store, Apple TV, MacBook Air, Beats headphones, etc. They want you buying their devices every year for the next 30 years. So brand and loyalty are huge factors. Apple can’t sell an iPad at 2:30 a.m. with an infomercial.
WELL DONE, JIM THE HAMMER.
The beautiful thing about marketing is there’s a science to it. We can leverage that science to generate sales and revenue. The downside is once you figure out the equation, it almost doesn’t matter what the content is. You can produce a really bad commercial and if the math works… it will make money.
In the words of iconic Jim the Hammer, “The proof is in the money! I’ll hammer!”