Need someone to critique my marketing plan (6 months in and spending $1000/mo)

[trademarked]

Hi everyone,

I've been using some other message forums, but it looks like this site might be a lot more active, so I decided to jump over.  I'll cut to the chase.  I need some marketing help.  My goal is to find owners of high equity properties where owner financing or 'subject-to' terms can be created to create cash flow, OR to find owners of property that will sell at a percentage of ARV low enough to assign the contract.  Here's a rundown of what I'm doing:

-Currently mailing owners with repair violations from the city, and landlords who have recently filed for evictions.
-Sending 1200 photocopy generated (but truly appearing handwritten) letters, real hand addressed with real stamp.
-Tracking results with unique phone numbers, phone numbers route to an answering service, I receive a lead email. 
-Response rate is 6%+, the percent that converts to a lead is probably closer to 1-2%.
-I also do some free internet advertising and bring in 2-3 leads per day, but rarely are they of quality. 

I still am not getting the quality leads I desire.  I plan to send to fewer people, but much more frequently.  I have previously tried absentee owners, delinquent taxes, neighborhood mailings, bankruptcy dismissals, and $0 deed transfers, but the initial response rates were so low compared to my current lists that I only did a couple mailings.  I've also done internet advertising at a cost of about $7-$15 a conversion. 

I really want to take this to the next level, but I'm not sure where the best area to change is.  My fear is that there is an obvious aspect that I am overlooking that may easily improve results.  I'm wondering if I should be exploring other avenues aside from direct mail and internet marketing.  I'm really excited to hear what everyone has to say, especially from those that have been in my shoes and have overcome this obstacle. 

(Also, I'm slowly (but steadily) trying to improve my sales skills.) 

~Trademarked

[fadi]

Well, direct marketing does work. The fact that you are getting 6% response is a proof and it is a high response rate as is.

I would look at couple of things:

1. Is the letter you are sending well written and convincing? from the response rate, sounds like it
2. Are you sending it to the right audiance? you have the response, but the leads are not good. Find out where the right leads are at and target them.
3. How many times are you mailing the same prospect?

Keep in mind that when you are marketing to find properties, you are looking for that one motivated seller with the right financing and right property. Getting response is good, it could be a matter till you find that right deal.

Also, are those you consider not good leads are not good because they do not good, or do you need to work on your negotiations and closing techniques?

[trademarked]

1. Is the letter you are sending well written and convincing? from the response rate, sounds like it

It's a simple generic letter done on yellow lined notepad paper.  I'm going to better tailor the message to my target audiences and see if it improves the response rate. 

2. Are you sending it to the right audiance? you have the response, but the leads are not good. Find out where the right leads are at and target them.

Most of these people should be highly motivated.  They are individuals that have city housing violations they could ultimately lead to the demolition of their property, or they are landlords who recently had to evict a tenant.

3. How many times are you mailing the same prospect?

I was mailing every month, but I'm going to start mailing every 2 weeks for a total of around 8 mailings.  I've been testing different lists and I haven't yet made it through a full 8 week cycle on one list.

Also, are those you consider not good leads are not good because they do not good, or do you need to work on your negotiations and closing techniques?

I do admit that I need to work on my sales techniques, but I'm simply getting very few appointments.  Not enough of my calls are converting into leads.  Many call the live operator service and hang up, or refuse to provide their information.  My letter looks very personal, so I'm wondering if it is a surprise when they call to find a professional sounding recording and operator service.

[fadi]

If you are getting hang ups, then that may have something to do with it. usually 1-2% response is considered good. Why not try landlord list, not just evictions? i get many landlords calling me to sell, even though i don't market to them specifically.

If you want to continue to use answering service or recorded message, then let them know what to expect up front in your letter. This could help, although you need to test it.

The problem with the yellow letters that many use are very basic "hi I want to buy your house" and "hi we buy houses" but they don't follow a good sales letter principles.

"Hello Bob,

The reason I am writing you is because I noticed that you have an investment property at XYZ. I am looking for couple of properties in that area, and I would like to buy yours and pay all cash. I can usually close within 7 days, and I don't mind paying all the closing costs and repairs.

Do give me a call at (555)-555-5555. I sometimes forward my phone to my answering service/answering system if I am in a meeting, but do leave me a message and I will call you right back.

I am looking forward to see how we can help each other, or work something out. There is really nothing to lose.

Again, call me at (555)-555-5555 right now. I will be waiting for your call.

Sencerely,

Trademarked"

I just threw this together, I didn't really sit down and think too much into it but hopefully it may help.

[trademarked]

Fadi, thanks for the feedback.

I have tried absentee owners in the past, and was unsatisfied with the results.  In my opinion, a landlord that is going through an eviction should be much more motivated then a landlord with no problems. 

I've decided to change my hand written letter to let the recipient know I have an answering service.  I will track the response rate and see if it improves. 

Unfortunately, I am getting somewhat discouraged after trying this for awhile. 

[fadi]

Think of it this way... you are testing right now to find the best way to get leads. Once you find the right target market, the right message, and the right tool (letters, postcards..etc), then it is just a matter of repeating it.

[trademarked]

Good point, I will keep it up!

[rightontime]

Direct mail works, i think the best leads we ever got were direct mail leads.....