i would like to hear some feedback from those who are actively sending direct mail. one of my partners received a 0 response rate, in which he was very surprised. i mentioned to him that i read, on this board i believe, that many investors were receiving a huge decrease in mail response.
i would like to hear everyones feedback.
what’s working for you?
what isn’t?
some things you have learned (good and bad)
any other helpful insite that could be of use (ie/ types of mail using to increase response rate, or ways to stick out from competition)
With a 0% response rate, my first question to your friend is how many people did they send the mailing too? Second question is what “list” (out of area owners, pre-foreclosure, etc.) did they send their mailing to? Maybe your friend’s message in the letter/postcard did not match the emotions of the list of people they sent the mailing to.
Also, don’t just send out one mailing – send multiple mailings.
I am currenty not mailing to pre-foreclosures. I sent a postcard mailing today to “Junker/Ugly Homes” (3rd mailing). I compiled this list myself driving around. The response rate to this group has been low (about 0.3 - 0.5%).
I am sending out an Out of Area mailing next week (2nd mailing). The response rate for the first mailing was 1.6%.
To have a more effective direct mail campaign you need to make sure your letters and post cards play to the emotions of the seller depending on what type of list you send off.
You don’t want to come off as a desperate investor who just wants to buy the home you have to consider the emotions of that person.
Plus the more personal the letter the better meaning that you should always write in handwriting not only your post cards and letters but the envelope as well. The more it looks personal the more the seller will look and read your letter/postcard.
Also volume is important. If you just send say 5 and you’re only getting 0% than you won’t get anywhere. You have to increase your odds so you need to start sending 50-100 even if you only get 10 responses that’s still a good response rate.
The more you send out the better your odds of people responding to you.
If your friend is getting a zero response rate, then he/she needs to send out more advertisements and to check his/her list. There are a lot of list companies that send out the same list to many people looking for the same thing. Direct mail is ok but the leads are better if they are generated through your own branded website than through someone elses list.
Do you hand-write all of the letters or do you print with a handwritten font? Or, do you hand write a letter and make copies and then write in the specific information? (ie. name, address of property, etc.) Please explain…
It seems like it would take a very long time to hand-write even a simple letter.
Thanks for the info. I have been investing for a long time, but never really had to market myself very much due to all of the contacts and relationships I have made over the years. Unfortunately, over the last year or so I haven’t been enjoying the quantity of deals that I have in past years. I have been researching marketing plans for several months and I’m ready to start my direct mailing campaign. One more question for you or anyone who would like to chime in. Have you ever tried printing the letter out in a handwritten font using MS Word, in blue, and if so, what kind of response did you receive? or what do you think about its effectiveness? I’m trying to figure out how to mass produce the letter so it looks as close to handwritten as possible, but with the ability personalize it (ie. Their name, property address, etc.) Any other tips, tricks or suggestions are greatly appreciated.
Direct mail… It is simple just mail your mail on a regular basis… don’t stop and modify your letters until they work for you. They must fit your prospect group… there are only 10 prospect groups. Not that you need 10 different campaigns but you better know what each one needs to hear or read.
we are in a buyers market and to be very honest there are a ton of good deals in the MLS where a few years ago we had to spend thousands on marketing to find a deal. That is no the case now.
I currently am only sending out about 250 mail pieces a day. ALL Postcards… I send five different ones to each prospect and the only two prospects I market to are 'Free and Clears" and Pre Foreclosures… NOD’s.
The hard cost is less than 3.00 a prospect… and I get about a 5 % call response with 1.5 percent true response.
On your pre foreclosures set up a site to do the work of handling the calls and contracts… take a look at www.foreclosure-shortsales.com for your free and clears that will take a presentation and knowledge of seller financing techniques.
Just also know that we are in the best and worse market in a long time so the over night get right isn’t as easy as it was… You should be holding any property where the costs are 50% of income and sell the balance.
With FHA seasoning your flips are going to be direct sells between the seller and your buyer so make certain your contract allows for it and be up from with your seller.