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    Definition of direct-mail agency

    Dictionary of Marketing Terms: direct-mail agency
    direct-mail agency

    subscription agent that sells subscriptions through the mail. Most direct-mail agencies use sweepstakes promotions offering high-value prizes, and can mail in larger quantities than any one publisher could afford. Promotion packages used by direct-mail agencies usually include stamp sheets showing all of the magazines they sell and the price of each. The commission taken by agencies usually ranges from 75% to 95% of the selling price, and they typically offer the lowest price available from each publisher to the general public.

    Publishers often use special renewal promotion offers and packages to renew subscriptions sold by direct-mail agencies because these subscribers tend to be very price sensitive. Sweepstake promotions are especially effective in renewing sweepstake-sold subscriptions. Direct-mail agents tend to be the largest and most reputable subscription agencies.

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