Tag: Isn’t

13 Reasons Why Direct Mail Isn’t Dead

In an increasingly digital world, direct mail seems old and boring.

You wouldn’t drive a horse-drawn carriage to work or use a pager to contact your friends, would you?

Of course not.

Direct mail feels outdated.

But direct mail is still a great way to reach your audience, grab their attention, and connect with them on a personal level.

In 2016, The Data & Marketing Association reported that the direct mail customer response rate increased by 43%. Even better, the prospect response rate increased by 190% compared to 2015.

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Many marketers are in shock.

But the data is undeniable.

Direct mail is still effective, and using it is a game-changer for any serious marketer.

Here are 13 reasons why direct mail still isn’t dead.

1. Direct Mail has a High ROI

Would it surprise you if I said that direct mail gives you more bang for your buck than paid search and online display ads?

Well, it does.

Direct mail has a median ROI of 29%, putting the ROI in third behind email and social media marketing in terms of ROI. Social media is ahead by only 1 percentage point.

direct mail ROI chart

That might not seem very high, but when you consider that paid search has an ROI of 23% and online display at 16%, that number looks a lot more attractive.

Are you curious about what your direct-mail ROI could become? You can go here to calculate it.

calculate ROI for direct mail

That baffling ROI says nothing of direct mail’s response rate, which is 5.3% for mail sent to houses and 2.9% for prospect lists.

direct mail response rate

Now compare that number to email, which has an average click-through rate of about 2% or 3%. And that’s the click-through rate, not the response rate, which is 0.6%.

Despite what the haters say, direct mail is still holding its own against other marketing channels.

2. Direct Mail Works Great with a Digital Marketing Strategy 

Every great marketing strategy uses multiple channels.

Smart marketers wouldn’t run only Facebook Ads and call it a day.

They’d consider running Instagram ads, do paid search campaigns, and even use search engine optimization to increase traffic.

While you shouldn’t invest only in direct mail, you should consider it part of your marketing bag of tricks.

97th floor in Utah combined direct mail and digital marketing to increase loyalty with their clients.

First, they sent out a direct mailer to all of their clients with a holiday poem and a $20 bill with a scannable code next to it.

direct mail example

Endearing, right? But the beauty is when you flip over the card and look at the left-hand side. There’s a scannable code and a hashtag to use below it.

direct mail example back with tracking code

So what’s up with the $20 bill?

When someone scanned the code with their phone, it sent them to a video that encouraged them to spend $20 on someone less fortunate during the holiday season.

The agency then asked for everyone to share what they did on Twitter using the hashtag #20helps.

direct mail campaign hashtag on twitter

Combining direct mail with savvy digital-marketing techniques increases the personability of the message you’re sending.

When you give people something to do with your direct mail, such as watching a video, taking a selfie, or spending $20, few people resist the urge to participate.

3. Direct Mail is Easier to Target Than You Might Think 

On social media, targeting your audience is dead simple. Facebook, Instagram, and Twitter all offer tons of targeting tools based on interests, demographics, even behavior. 

But what about sending the right message to your customers using direct mail?

Can you target your ideal client well enough to make it worth your time and money?

Yes, you can.

At USPS.com, you can use their Every Door Direct Mail tool to send mail to different customers in different areas.

USPS com Every Door Direct Mail

Start by entering your city and state or zip code.

target direct mail USPS

Hit enter. Select up to five zip codes near your location.

target direct mail USPS

Then click continue. You’ll see a map that looks something like this.

every door direct mail

When you hover your mouse over a route, the tool will show you the number of residents, number of businesses, age range, average household size, and average household income of that zone.

It even calculates the approximate cost of postage to send a mailer to that route.

everydoor direct mail cost calculator

As long as you already know who your target audience is, direct mail can be highly specific.

4. Direct Mail is Trackable (Yes, really) 

Technically, there is no automatic way to track direct mail response rates, ROI, and general engagement. Unlike a Facebook ad, you can’t track that the user went from your ad to your product page. 

Maybe a customer visits your website after seeing your direct-mail piece. While this person would count as a lead from your website, they should be a lead from your direct-mail campaign.

But wait, I just said direct mail is trackable. 

It’s a little more complex, but tracking direct mail is totally doable. 

Here are a few tricks you can use to find out how well your direct-mail campaign is working.

First, if your goal is to get someone to call you, choose a unique phone number for that direct-mail campaign.

10 Tips for Sending Real Estate Direct Mail with examples

Similar to this, if your goal is to get people to visit your website, you can create a unique landing page to track your results.

When people visit or click on the landing page, you’ll know that they came from that direct-mail campaign.

10 Tips for Sending Real Estate Direct Mail with examples 1

Whatever CTA you choose for your direct mail campaign, use a unique tracking device, whether that is a phone number or website URL.

Then, you can count it as a lead from your direct-mail campaign.

5. Direct Mail is Less Common 

At first glance, that might not seem like a good thing.

Maybe fewer marketers are using direct mail because it doesn’t work.

As I’ve already shown you with the above statistics, that isn’t the case.

The answer is simple. Since everyone is familiar with digital marketing, it’s easier to start getting results than a direct-mail campaign. So fewer people do it.

In 2016, there was a 2% decrease in direct mail delivered from the previous year.

direct mail increase stastics

Why is that a good thing for your direct-mail campaign?

When fewer marketers are sending mail, your piece has a higher chance of standing out.

Think about how much harder it is today to rank in Google. If I type in “how to send awesome direct mail,” Google only shows me 10 results out of 6,470,000 possible answers.

how to send awesome direct mail Google Search

In other words, the internet is full of marketing messages.

But mailboxes aren’t.

And that’s why direct mail still works so well in this digital age. Since it takes a bit more work than other digital marketing strategies, it’s less common and more effective.

6. Direct Mail Gives a Feeling of Romanticism

Like hot baths and candlelit dinners, direct mail has become romanticized in our culture.

Think about it. When you receive a handwritten letter from someone, what do you do?

You get excited. Someone cares enough to write you a letter. It’s not very often that you receive something like this.

What do you do next?

I’ll bet you sit down and read every word of that letter. But it’s not just you who loves getting letters.

73% of people said that they prefer direct mail as an advertising method.

customers prefer direct mail stat

And, 59% of US consumers say they actually enjoy getting mail from brands. 

Since people are receiving less direct mail, each piece of mail is more exciting.

Especially if your direct mail is handwritten. Even if you add your signature.

In a world where everything gets written by a machine, handwriting on a direct-mail piece is a touch that receivers won’t be able to ignore.

Just check out this example from BiggerPockets.

direct mail envelope example

It’s more like getting a personal letter from a friend than a marketing message from a business.

7. Direct Mail is Tangible

Imagine this. You receive a coupon in the mail for $10 off your next meal at your favorite local pub.

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If you’re like me, you set the coupon on your refrigerator for future use.

Then, you pretty much forget about it. For the next few weeks, the coupon sits in your kitchen with other unused direct-mail offers.

But one night, your buddy calls and wants to watch the big game at a restaurant. As you’re trying to decide where to go, you remember, “Oh! I have a coupon for our favorite pub.”

And at that moment, the coupon decides for you.

Even though the coupon is for just $10.

You could do the same thing with a haircut business.

direct mail example superucts

Or an ecommerce store. No brick-and-mortar location needed.

direct mail example discount contacts

Since direct mail is tangible, it sticks around. It clutters physical space.

Email is easy to forget about because it’s just a number on a screen.

As a general rule of thumb, about two percent of online advertisements garner our attention each day. In other words, only about 100 out of every 5,000 ad exposures have any meaningful impact on consumers.

But direct mail is unavoidable.

About 66% of people have purchased a product because of direct mail.

If your direct mail piece has a special offer, most people will save it for future use, and then they won’t be able to forget about it.

8. Direct Mail Gets Undivided Attention

A certain fear accompanies direct mail.

What do I mean?

When you open the mailbox and pull out a small stack of letters, you won’t throw away any of the mail without glancing at it first.

You don’t immediately know which piece of mail requires your attention and which one you’re uninterested in. There is a fear that you might miss out on something important.

Because of that, you don’t want to throw mail away without taking a peek at it first.

Right? 

When you receive an email, you probably have at least four (or forty) other tabs open on your computer. There are a bunch of notifications dinging on your phone and laptop.

The average American consumer is exposed to thousands of advertisements per day. In fact, it’s not unusual for the average consumer to see more than three hundred advertisements, of various sorts, within the first hour of waking up. 

But when you receive a piece of direct mail, you’re at home, after work, with some extra time to view each letter.

Direct mail naturally gets more attention because there are fewer distractions when people see it.

9. Direct Mail Increases Brand Awareness

As I’ve shown you, direct mail is tangible, meaning it has the potential to stick around for a long time in someone’s house.

For this reason, consistent mailing increases awareness of your brand.

How?

Consider this piece of direct mail from Le Tote.

direct mail example from le tote

The front has the value proposition and offer, while the back demonstrates how easy it makes your life.

direct mail example le tote 2

Since this postcard offers a coupon, there’s a good chance that the recipients will save it for a later date.

But what if they don’t use it later?

What if they see it, read it, and then throw it away?

Did you just lose money on a poor direct-mail campaign?

Not necessarily.

Sure, your recipients might not have interest in your offer right now. But they saw your logo, your brand name, and what you do.

If there comes a day when they want your product, they might just visit your website and buy something from you.

Before the direct mail piece, there was no chance of that because they didn’t know who you were — that’s the power of branding. 

And that’s a win for any marketer.

10. Direct Mail is for All Age Groups.

I consider this one of the most compelling reasons that direct mail still isn’t dead.

If you send an email, use Facebook Ads, or do any online marketing, your chance of reaching an older demographic isn’t very high. 

Around 62% of people over the age of 70 use a smartphone. That percentage decreases all the way to 17% as the age increases.

Only 46% of American adults over the age of 65 use Facebook. And while that number is on the rise, that still means over half of older adults can’t be targeted on the larges social media platform in the world. 

In fact, 33% of senior adults don’t even access the internet. 

direct mail guide: senior internet usage chart

Conversely, direct mail reaches everyone, the young, and the old alike. Everyone checks the mail, and because of that, your postcards and coupons can turn just about anyone into a customer.

11. Direct Mail is Creative

When it comes to direct mail and creativity, the sky’s the limit.

Because direct mail is a physical product, sending stuff that stands out is just a matter of having fun with it.

This example from ADT is a bit controversial in its execution. But it’s a great example of creative direct-mail marketing in action.

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Here’s how it works.

A letter-sized card slides under the door to the house of the receiver. But the letter is carefully engineered to pop-up into a box once it’s under the door.

On the box, it reads, “Breaking into your apartment is easier than you think.”

When someone sees it, they might immediately think, “What the… Did someone break into my house?!”

ADT highlighted a problem in action. What’s a good solution? Get an ADT security system.

On the less controversial side of things, a gym in Brazil struggled with members quitting because they didn’t see immediate results from their workouts.

As a reminder that getting results takes consistent time in the gym, they sent out calendars to their members that illustrated the gradual progress they’d see if they stuck with the program.

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Coming up with flashy ideas is not easy. If you’re not naturally creative, then talk with someone who is.

If a security-system brand and a gym can come up with interesting direct-mail pieces, the chances are that you can too.

It might just take a little extra thought.

12. Direct Mail is Multi-Sensory

With digital marketing, it’s impossible to hit all of the senses and difficult to hit more than two.

The five senses are touch, hearing, sight, taste, and smell.

At most, a digital campaign can only focus on sight and hearing. By making a digital ad interactive, some smart marketers can appeal to someone’s sense of touch. But even that experience is not the same.

By making a digital ad interactive, some smart marketers can appeal to someone’s sense of touch. But even that experience is not the same.

Everyone experiences the world through their senses. Direct mail can take advantage of all 5 of them.

George Patterson Y&R Melbourne sent out a cardboard box with two knobs on it and a baggy of electronic components. It included everything necessary to build an FM radio.

Everything, except for one thing: instructions.

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The mail piece went out to college engineering students.

When they put together the radio, an ad played, offering the student a fast track to an exciting military career.

Talk about multi-sensory. This cardboard radio took advantage of three senses, and some might argue 4 with the smell of cardboard.

Consider this KitKat mailer.

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This direct mail piece acts as if you ordered a KitKat to your mailbox, implying that it was too “chunky” to arrive at your home.

Although there are technically only two senses involved, sight and touch, this piece does a good job of including taste by emphasizing the “chunky”-ness of a KitKat.

Not to mention, it’s fully interactive as you walk to the store.

Because humans experience the world through five senses, the more of these that your direct mail activates, the more likely recipients will engage with your message.

13. Direct Mail is Memorable

Advertisements now flash before our eyes at blazing speeds. Each time we search, stream, watch, read, scroll, click, or swipe, we are bombarded by advertisements.

But direct mail stands out. 

Imagine putting together a radio delivered to your mailbox.

Maybe you receive a box near your door that reads, “Breaking into your house is easy.”

Or you get a funny mailer from KitKat that says your candy bar was too “chunky” to arrive at your home.

Or you get a tiny record player in the mail.

direct mail example

If you’re like most people, you’ll tell your friends about these memorable pieces of marketing genius.

Because direct mail is tangible and endlessly creative, it sticks with your audience.

As long as you take the time to put together an amazing piece of direct mail, your audience won’t quickly forget the message you sent.

Conclusion

The expansion of digital marketing has only enhanced the return on investment for direct mail campaigns. 

If you’re wondering why direct mail should take a place in your marketing tool belt, the above 13 reasons are answer enough.

Direct mail campaigns give a high ROI and even a higher ROI than paid ads. They can work effectively in a campaign by themselves or alongside a digital-marketing campaign.

You can use direct mail to target the right customers at the right time. And it’s easy to track the results of each campaign you run.

With direct mail becoming less common, there is less noise. You can capture the undivided attention of your customers with its romantic appeal.

Because direct mail is more likely to get read, it increases your brand awareness, even if the first letter is unsuccessful.

Unlike digital campaigns, direct mail has a larger appeal to every age group.

Since direct mail is a physical product, it allows room for creativity. Thus it can appeal to more senses, leaving a lasting and memorable impact on your customer.

In the end, direct mail is powerful because it’s different from the digital way of doing things.

I get hundreds of emails every week. But I get a fraction of that number in the form of letters in my mailbox.

To stand out in a world where everything has gone electronic, consider complementing your digital marketing strategy with a direct-mail campaign.

It’s a missing personal touch in a hectic world.

And as every great marketer knows, being personal pays off.

What is the biggest reason you think that direct mail is still going strong?

The post 13 Reasons Why Direct Mail Isn’t Dead appeared first on Neil Patel.

Building Business Takes a Lot of Hard Work, but it Isn’t as Hard as You May Think

The key to building business successfully is to set your business up for success in the beginning.  Everyone knows that the key to building anything strong is to have a solid foundation, and the same is true of building a business.

Building Business Means Setting Up a Strong Foundation and Following Through

No one wants to go back to the beginning to build a foundation. It is always best to take the extra time to build a solid foundation on the front end.  That usually takes some extra work and more than a few extra steps. While it’s true that building business is not for the faint of heart, this extra work is always worth it.  Here is how to begin setting up your business for success. 

Building Business: It’s all in the Plan

Not only is a business plan necessary when it comes to getting business loans, but it is necessary to the day to day operations of your business as well.  Virtually all successful entrepreneurs will tell you that a major key to success is to plan to work and work the plan.  

Most traditional lenders are going to need to see a business plan as part of the loan application process.    Truthfully, it’s best to hire a professional business plan writer if possible. They can work with you to get all the necessary information and put it together in the traditional  format.  

If you cannot hire a business plan writer however, there other options. The Small Business Administration offers a template, and your local small business development center may also be able to help.

building business Credit Suite3

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

For a business plan to be taken seriously by a lender, it needs to include the following: 

A Strong Opening 

 An Executive Summary

 This is a complete summary of the business idea. 

Description

The description goes into further detail than the summary, describing the business. This is where you work to build excitement about your business. 

Strategies

Layout your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with? What is your ramp up plan? 

Market Research 

Market Analysis

This actually includes two parts. All that market research you did goes here: 

Analysis of audience

What need will your business fill, and for who? Are you a child care facility filling a need for affordable child care for working moms? Are you an eatery filling a need for a lunch spot for those working downtown? How will your business fill the need? All of that information goes in this section. 

Competitive Analysis

Is there already a business working to fill this need? Is there room for more? How do you plan to compete with them? 

If you are not a new business, this will be a market analysis that supports your need for funding, or that shows your business is strong and growing.

The Plan 

Plan for Design and Development

How is all of this going to play out, from start to finish. What steps are you going to take? This is more detailed than your strategies section.

Plan for Operation and Management

Who will own or does own the business and who will run or currently runs it from day to day. This could be as simple as stating that you are the sole owner and operator, or as complicated as laying out a complete partnership plan or board or directors’ format. It just depends on how your business works. 

Financials

Financial Information

This section includes current financials, projections, and a budget plan for the loan funds you are applying for.  Lenders need to see that you know how to handle the funds you get, and that you have a plan to pay them back.

Working the Plan 

Don’t fall into the trap of thinking the official business plan is only for lenders to help you get loan approval.  It isn’t. Your business plan should be a useable, practical tool that you can follow and refer back to. That is key to building business.   Are sales down? Refer to your plan. Struggling with cash flow? What does the plan say? Work the plan you worked so hard on and trust the process. Also, remember to revisit the plan occasionally even if things are going well to look for ways to improve it, or adjust it if necessary.

Building Business: Licenses

Do you need a business license?  What type of license do you need?  Ask yourself these questions and find the answers to begin building business on a solid foundation.  

Which Types of Business Licenses Do You Need?

If a federal agency regulates your business activities, you will need a federal license.  The Small Business Administration lists the following industries as needing a federal license.

    • Agriculture
    • Alcoholic beverages
    • Aviation
    • Firearms, ammunition, and explosives
    • Fish and wildlife
    • Commercial fisheries
    • Maritime transportation
    • Mining and drilling
    • Nuclear energy
    • Radio and television broadcasting
    • Transportation and logistics

The SBA also has a wealth of other information you need to know for starting your business, from help writing a business plan to finding funding.

building business Credit Suite3

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Building Business: What Funding Options are Available

There are a number of funding options available to help you when building business.  Which one you choose will depend on a number of variables. It’s likely the best option will be some combination of the many possibilities, including how fundable your business is.  We break them down for you below.

Traditional Term Loans 

These are the loans from traditional lenders such as banks and credit unions.  As a business, your business credit score can help you get some types of funding even if your personal score isn’t awesome.  That isn’t necessarily the case with this type of funding however. 

With a traditional lender term loan, you are almost always going to have to give a personal guarantee.  This means they will check your personal credit. You will need a personal credit score of 700 or higher to gain approval usually, with the best terms and rates coming at 750 or higher.  

Of all of the available business funding types, this is the hardest to get, but is also typically the option with the lowest interest rates and most reasonable terms.

SBA Loans

These are traditional bank loans, but they have a guarantee from the federal government. The Small Business Administration works with lenders to offer small business loans  that they may not be able to get otherwise based on their credit history. Because of the government guarantee, lenders are able to relax a little on the personal credit score requirements. 

In fact, it is possible to get an SBA micro-loan with a personal credit score between 620 and 640. These are very small loans, up to $50,000.  Personal collateral is also usually a requirement. 

 The trade-off with SBA loans is that the application process is long and involved. 

Business Line of Credit 

This is basically the traditional lender’s version of a business credit card. The credit is revolving, meaning you only pay back what you use, just like a credit card. However, rates are typically much better than a credit card.  The application and approval process is similar to that of a traditional term loan. 

If you need revolving credit and can qualify for a term loan, this is a good option. It is great for bridging cash gaps and covering short term expenses without the high credit card interest rates. 

There are no cash back rewards or loyalty points.  This makes some business owners prefer business credit cards despite higher interest rates. 

Invoice Factoring 

If you are an established business with accounts receivable, then you might consider invoice factoring. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash right away, without waiting for your customers to pay the invoices.

This is a good option if you need cash fast.  It can also work if you do not qualify for other funding types. The interest rate varies based on the age of the receivables.

Non-Traditional Lenders

These are private lenders, not traditional banks and credit unions, that offer terms loans.  Usually they operate online. The difference between these and traditional lenders is that the loans have looser approval requirement and a much faster application process. Most often you can simply apply online, get approval in as little as 24 hours, and the funds are in your account within 24 to 48 hours after approval. 

These are an option if your personal credit isn’t terrible and you need money quickly.

build biz Credit Suite3

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Crowdfunding

Crowdfunding is a newer option for finding investors. While the average Joe that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can literally have a crowd of investors fund your business in $5 and $10 increments. 

There are many crowdfunding sites, but Indiegogo and Kickstarter are the most popular. The platforms are similar but there are some important differences. The most obvious is the timing of when you actually receive the funds that other invest in your company.

Find out more about each option here. 

Grants 

These are typically offered by professional organizations. There are some government grants available also. Competition can be stiff, but they are definitely worth applying for if you think you may qualify. 

While requirements vary from grant to grant, and most are only awarded to a certain number of recipients, this is an option is worth looking into if you fall into one of these basic categories. 

  • Women owned business
  • Minority owned business
  • Businesses run by veterans
  • Businesses in low income areas

 There are also some corporations that offer grants in a contest format that do not require much other than that you meet the corporation’s definition of a small business and win the contest. 

Business Credit Cards 

These get a bad rap, but in lieu of another option, they aren’t a bad option. The draw is that they are available to most, even if their credit score that isn’t awesome. The catch is, the lower the credit score, the higher the interest rate. Also, there are limits on how low they will go with a credit score. 

However, this is one type of funding that most of the general public is eligible for at any given time. They do a credit check, but your credit doesn’t have to be as high as it would be to gain approval for a traditional loan. 

 The downside of business credit cards is that they typically have a high interest rate. The upside is that many of them offer rewards in the form of cash or points that can be helpful. 

Building Business: Marketing

Once you have your foundation set, you have to actually build up the business.  That means getting others to buy whatever you are selling. Marketing is a term used for getting your product and service out there for others to see.  

The number one beginner tip for marketing is to know who you are marketing to.  You need to know what types of people will be buying your product so that you know how to convince them they need it.  This step was probably taken care of in the marketing section of your business plan.  

How you market will vary based on your budget, but these days social media marketing is huge.  It’s a lower cost option than traditional television and news print, yet highly effective. If you can get just one post to go viral, you’ve done something.  Get people talking about your product on social media and your marketing could basically be done for you, depending on what you are selling.

Of course, there is still a place for, and even a need for, traditional marketing when building business.  Generally speaking, the best bet is to hire a professional to handle all aspects of marketing.

Building Business: Networking

This is an aspect of building business that so many do not really think about until after the fact.  It can have a huge impact though. Of course, these days, as with marketing, much networking is done online through social media channels. There is something to be said for face to face connections however. 

While much of your business may be run online, limiting face to face interaction, take some time to consider ways to connect locally.  There could be those that need your services or product right in your area. Try joining your local chamber of commerce. They typically have events like business after hours that support this type of networking. 

Building Business Isn’t Hard, but it Does Take Work

Building a successful business takes a lot of hard work and a lot of luck.  Things can go wrong, even if you do everything right. You have to have a business plan, find funding, nail marketing, and work at networking.  However, if you set yourself up for success in the beginning, work hard, and don’t lose momentum, you may end up with something fabulous.

 

The post Building Business Takes a Lot of Hard Work, but it Isn’t as Hard as You May Think appeared first on Credit Suite.

Wells Fargo Business Platinum Credit Card: What It Is and What It Isn’t

The True Story of What You Can Do with a Wells Fargo Business Platinum Credit Card, and What You Can’t

It can be a bear to figure out which credit cards are worth your time to apply and for and which ones are not.  If you like to play the loyalty points and balance transfer game, it can be equally as daunting to figure out which combinations of cards work best for your needs.  The Wells Fargo Business Platinum credit card is great for many purposes.  It isn’t for everyone though.

To understand if this card is right for you, and how it compares to other cards out there, keep reading.

Check out how our reliable process will help your business get the best business credit cards.

Wells Fargo Business Platinum Credit Card New Customer Perks

Many cards offer a new customer bonus.  The Wells Fargo Business Platinum credit card is no different.  Currently the offer to new cardholders is a one-time $500 cash back bonus or 50,000 bonus points.  That is, if you enroll in their rewards program and spend $3,000 in the first three months.  They also offer a $0 rewards fee annually.

Wells Fargo Business Platinum Credit Card Cash Back and Points

The Wells Fargo Business Platinum credit card offers 1.5% cash back on every $1 spent.  In addition, you can earn 1 point per $1 and 1,000 bonus points if you spend $1,000 or more in any month.  There are no required spending categories or caps.

Users can redeem points for gift cards, merchandise, airline tickets and more.  In addition, you can earn a 10% credit by redeeming points online.

Wells Fargo Business Platinum Credit Card Interest Rates

This card offers a 0% introductory rate for first nine months.  After that, Interest rates are prime + 7.99% to Prime + 17.99% on purchases.  Cash advance rates are prime + 20.74%.

Which Businesses Benefit Most from the Business Platinum Credit Card?

Not all cards work well for all businesses.  This card works best for those that meet the following characteristics:

  • Businesses with annual sales up to $2 million
  • Those wanting the ability to choose between cash back or points
  • Businesses that need an easy way to manage business expenses
  • Those needing to add employee cards. The Wells Fargo Business Platinum credit card allows up to 99 employee cards with no additional fee.

Other Benefits of the Wells Fargo Business Platinum Credit Card

In addition to those already mentioned, this card also boasts the following.

  • Cash management tools
  • Spending reports available online
  • Online banking and bill payment options

How Does the Wells Fargo Business Platinum Credit Card Compare to Other Cards?

It really just depends on what you need and what you qualify for.  Here are some other options for comparison purposes.

Discover it® Cash Back

You can earn 5% cash back at different places each quarter. Gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs all qualify. There is a quarterly maximum each time you activate however. On top of that, automatically get unlimited 1% cash back on all other purchases.

You will earn an unlimited dollar-for-dollar match of all the cash back you have earned at the end of your initial year, automatically.

For this card, your APR will be 14.99% to 23.99% based on creditworthiness and the market rate, which is based on the Prime Rate. Find out more about this card here.

Check out how our reliable process will help your business get the best business credit cards.

Wells Fargo Business Secured Credit Card

This is another Wells Fargo card that may work better for you if the Wells Fargo Business Platinum credit card is not an option.  It charges a $25 yearly fee per card (up to 10 employee cards).  In addition, it requires a minimum-security deposit of $500 (up to $25,000). It’s designed to help cardholders build or rebuild their credit.

If 1.5% per dollar in purchases with no limits or earn one point for every dollar in purchases sounds like something that would work for your business, this is the card for you. Additionally, you earn 1,000 bonus points for every month your company makes $1,000 in purchases on the card.

You will also have access to free FICO scores every month. It’s important to note that there are no foreign transaction fees, and it is possible to upgrade to unsecured credit.  They will review your account regularly to see if you are eligible for an upgrade to an unsecured card.  Approval is not guaranteed and depends on factors including how you manage this and your other accounts.

APR is the current prime rate plus 11.90%. There is no introductory APR period and no sign-up bonus. Since this is a secured card meant for building credit, it is not a good option for balance transfers.  Find out more about this option here.

Chase Sapphire Preferred® Card

If you travel, the Chase Sapphire Preferred® Card is a great option.  They offer two points for every dollar on dining and travel.  Other purchases will earn you one point per dollar.  Trade the points in for the regular parade of cash back, gift cards, or travel.

Other benefits include trip cancellation insurance, travel, and emergency assistance services. They also include an auto rental collision damage waiver, purchase protection, and extended warranty protection.

When you spend $4,000 in the initial 3 months from account opening, you will get 50,000 bonus points. These points are worth $625 if you redeem them for travel through Chase Ultimate Rewards.

There is no 0% introductory APR on purchases or balance transfers. The card’s standard APR is 17.74 — 24.74% variable. Also, there is an annual fee of $0 introductory for the first year. After that it is $95.  Find out more or apply here.

Business Platinum Credit Card Credit Suite2

Ink Business Preferred ℠ Credit Card

With this card, cardholders earn 3 points for every dollar spent on travel, shipping, internet, cable, phone and qualifying advertising. The cap on this is $150,000 each year.  All other purchases earn an unlimited one point per dollar spent.

In addition, you get 80,000 bonus points when you spend $5,000 in the first 3 months from account opening. There is an annual fee of $95.  However, you can add employee credit cards at no additional cost.

One drawback is there is no introductory APR. Find out more and apply for this card here.

Discover it® Student Cash Back

Be sure to look at the Discover it® Student Cash Back card. It has no yearly fee and offers a six-month introductory period of 0% APR on purchases. After six months, there is an APR of 14.99 — 23.99% variable on all purchases.

One exceptional feature is that this card offers an incentive for students to maintain good grades.  Those with a GPA of 3.0 or higher each year will get up $20 statement credit.  This is good for up to 5 years.

Since it is developed with students in mind, this card is great for building personal credit. Of course, this is different than business credit.  However, for new credit users, FICO scores will be important also. This credit card offers an outstanding way to raise FICO while also getting rewards.

You can earn 5% cash back at different places each quarter like grocery stores, gas stations, restaurants or Amazon.com up to the quarterly maximum. After that, the card offers unlimited 1% cash back on all purchases.  Also, all cash back rewards are matched 100% the first year.

Drawbacks include a cash advance fee of either $10 or 5% of the amount of every cash advance, whichever is more. Even though they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.  Find out more here.

Hilton Honors American Express Ascend Card

This one earns hotel rewards points, so it is best if you spend a lot of time in hotels. Get up to 12 points per dollar of eligible purchases at participating Hilton hotels or resorts.

In addition, you automatically get Hilton Honors Gold status. That means room upgrades when available, and a 5th night free when you book a rewards stay of 5 nights or more.

This credit card has a variable purchase APR of 17.74 — 26.74%.   Also, there is an annual fee of $95.

Special offers include a 125,000-point welcome after making $2,000 in eligible purchases within 3 months after opening the account.  Additionally, earn a free weekend night award after making $15,000 in eligible purchases on your card in a calendar year.

Check out how our reliable process will help your business get the best business credit cards.

If you spend $40,000 on eligible purchases with the card within a calendar year, you can earn Hilton Honors Diamond status through the end of the next calendar year. This status includes all the benefits of Gold status. Find out more here.

Where Do You Start?

This is just a sample of what is out there and I am certain you can already see how hard the choice can be.  While some narrowing down is easy, based on things such as spending habits and eligibility, other factors are not so cut and dry.

The first thing you should consider is what is actually available to you.  Which cards are you eligible for based on your business income and credit?  If you currently are not eligible for the cards you want, you can do a couple of things.

The easiest is to start building your business credit.  If you don’t already have business credit, now is the time to make that happen. If you haven’t done the following already, they need to be handled first.

  • Incorporate as either a Corporation, S-corp, or LLC.
  • Get an EIN.
  • Get a D-U-N-S number.
  • Make sure your business has its own phone number, address, and fax number separate from your personal ones.
  • Open a separate business bank account.

How Do You Build Business Credit?

After you do these things, you can begin to open tradelines with starter vendors in the vendor credit tier.  These are vendors that will give you net terms on invoices, and then they will report your payments to the business credit reporting agencies (CRAs).  Find out more about the vendor credit tier and some great starter vendors here.

After there are enough of these vendors reporting on-time payments, your business credit score will be strong enough to start applying for credit cards in your business name.  Start with the retail credit tier.  These are store specific cards, such as a Staples credit card or a Best Buy card.  When you apply, use your business name and contact information along with your EIN.  Do not use your name, SSN, or contact information for anything other than identity verification.

As you get more of these cards and use them wisely, you will be able to apply for fleet cards that you can use to manage fuel and auto maintenance expenses.  Those would be from companies like Fuelman and Shell.

Lastly, you can apply for cards in the cash credit tier, which is where the Wells Fargo Business Platinum credit card falls. Other general, non-store associated cards fall into this category as well.

Is the Wells Fargo Business Platinum Credit Card Best for Your Business?

It depends on what you are looking for and what you are eligible for.  If the rewards with the Wells Fargo Business Platinum credit card fit your spending habits, and if you are eligible, then yes, this card may be right for you.

It can help to choose a few of the best cards that you may qualify for, and make a list of their pros and cons.  Maybe the rewards are perfect for you, but there is an annual fee.  Try to evaluate your spending to determine if the rewards will make the annual fee worth it.  Will you earn more than the annual fee in cash back or points?

If you need to do some work on your business credit before you are eligible for approval, there are other options.  Do some research, and in the meantime follow the steps outlined above to get your business credit score up to par.

It really is a balancing act between what you need rewards wise and what you actually qualify for.  Take some time to evaluate these things, do some research, and find the card that will work best for your business.  It may be the Wells Fargo Business Platinum credit card, but it may be something else entirely.

 

 

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