This letterhead is the heading at the top of a sheet of letter paper. It usually consists of a name and an address, and a logo or corporate design, and sometimes a background.

A letterhead may also refer to a piece of letter paper imprinted with such a heading or a printed stationery. A business letterhead normally comprise a logo, a return address, and a telephone number. Direct traders have discovered that the design of the letterhead can affect the response to a promotion letter.

For promotion letters, it is best to design a letterhead unique to each letter, one that is tailored to the style of the letter copy varying the logo, color, or even return address. For example, a fund-raising campaign letter for a nonprofit organization might utilize a simple black-and-white letterhead rather than the organization's usual two- color embossed, gothic-type letterhead that might look too rich.

Some traders have chartered post office boxes in a location best for their product, such as a Washington, D.C., box to utilize as a letterhead address for a political fund-raising campaign or a Florida P.O. Box to use for a cruise line. At the same time, there are other traders, who consider a color letterhead will create a more positive feedback than a black-and-white letterhead, unmindful of the promotion type, because the color stimulates the reader's level of interest in the letter.

On the other hand, there are various legal constraints on the items included in a letterhead, for example in England and Wales it may include the names of all directors or none, but not a selection.

Nevertheless, it is important that whether you are a small business or a multinational one, top management should never forget about the letterhead, as others simply overlook the importance of the letterhead. A company's letterhead is truly an essential piece to their business identity. It sets the stage for everything else that follows. Almost every piece of advertising literature that the company produces will feature its letterhead, which continually reinforces its importance.

So invest some time in creating a solid letterhead. Consider what feeling you want each of your customers to have when they receive something from you, and incorporate that into your letterhead design. Among the things you should consider is the color. A black and white letterhead can be effective, but there really is no reason why you shouldn't use color. Color printing is not that expensive, and the positive impact it will have on your letterhead is significant. Apply colors that accentuate the purpose of your business and that convey the type of feelings that you want your customers to have.

Another thing to consider is the paper. The smoother the paper, the better your letterhead will look. In fact, for any literature that you print yourself, you will want to use the smoothest paper appropriate for the task.

Consider also the logo as it should play a big role in your letterhead being placed in a visible and prominent location. Since you will be using your letterhead on virtually everything you give out, it is going to build up name recognition for your business and your logo will make that even easier.