Direct Mail is the absolute best way to generate quality Real Estate Investing leads. I read this article on BiggerPockets today. We are getting ready to launch our new Investor Direct Mail and this article rings true in so many ways. Pay specific attention to the response rates by number of times contacted! Sharon Vornholt did a great job on this! Read this article, and then get on the waiting list from Investor Direct Mail
Creating Successful Direct Mail Campaigns for Real Estate Investing
by SHARON VORNHOLT on APRIL 23, 2012Direct mail campaigns can be a great way to keep your funnel full of leads. I have said many times before, that direct mail is my number one source of leads. But there are some basics concepts that you need to follow in order for it to work for you.
Direct Mail Basics
One of the biggest mistakes that I see real estate investors make is to send out just a few mailings and then throw in the towel. These are called “campaigns” for a reason. It’s very important to understand that your response rates will go up with subsequent mailings. Some people will look at your mail piece for a year or more before they call you. You want to be the one that is still mailing to these folks when they finally become motivated. Remember that time and circumstances change all things. This is especially true for absentee owners.
A study done by the Sales and Marketing Executives International a few years ago resulted in some impressive statistics. The number of deals derived from direct mail campaigns look something like this:
- After the 1st Contact: 2%
- After the 2nd Contact: 4%
- After the 3rd Contact: 6%
- After the 4th Contact: 10%
- After the 5th Contact: 81%
The study went on to say that 90% of the people gave up after the 3rd contact. If you want to be one of the 10% who stick it out and close 81% of the deals, you must have a system for doing this. Without some type of system, it will never get done.
Lists and Letters
Before you can send a letter, you need a list. There are a number of places you can purchase your lists. One of them is listsource.com.
Some states have programs set up where you can purchase a list of probates that these folks say are accurate. Those types of lists are not available where I live, so I can’t speak about those. In my area we can get a list of all of the previous month’s probates from the newspaper. They are always published at the same time, so I know exactly when they will be available. I know that in some areas these are online, and in some towns you actually have to go to the courthouse to pull these records. You can find out the procedure for your area just by calling the probate court in your city.
Your local PVA or tax assessor’s office will provide a list of absentee owners for a fee if you choose not to use a list service. I had good luck with the accuracy of my local PVA, but I wasn’t able to filter that list.
What Type of Mail Piece Should I Send?
Everyone has a different opinion when it comes to letters verses postcards. Until about a year ago, I had only used letters. I decided to give postcards a try just for absentee owners, and they seem to work fine for this group of people. I generally get about a 3%-6% response. The postcards are yellow by the way.