What is everyones experience with this? Does the ads in the book actually produce good leads? How much does it cost? Does size matter?
Size matters, costs $250 to $2000/month with 1 year contract. Does it work? maybe, depends on your area and the ad. Is it the best use of your money? no… you should invest your money in direct marketing first.
So bandit signs would be more bang for my buck?
I investigated this before I took the plunge. I am now testing four editions of the Yellow Pages covering a total delivery of 2 million books. (They send to businesses, too, so there are more books out than people living in the area.)
The ad is business-card-size with color. It costs $500 per month for all four books.
The books have only started to drop (they really aren’t supposed to come out until July), and I’ve gotten a few calls. Not much, but then like I said, the books aren’t even out yet, really.
They way I looked at it, there are 2 MILLION books out there with my ad at a cost of $6,000 per year. If I get one deal, it’s worked out. If not, then it didn’t. I normally don’t use the “if I get only one deal” philosophy because it seldom works out, but I give the Yellow Pages a little more credibility than some of the other advertising options out there.
I am convinced that older people in particular still use the Yellow Pages as a first stop when researching, and there’s little doubt that anyone using the book is ready to call. They are not just thinking about it, they are ready to act.
As far as size, there are two schools of thought on that. If the prospect (seller) is looking for a true “we buy houses” listing, and if you’re the only one in that business in the book, then you don’t need much more than a small ad. There’s no point to a large ad because you’re the only one offering the service. You can even be one of two or three listings and still reasonably expect to get a call. It’s when there are hundreds of competitors that you need full-page ads, etc. (lawyers, HVAC comanpanies, and so on).
Now, if you’re also hoping to capture people that are just in the market to sell a house (as opposed to selling a house fast, no repairs, quick cash, etc.), then you would need a display ad to separate yourself better from the Realtors among whom you’ll be advertising. As for me, I don’t want every person looking to sell a home for retail to call. I just want the ones who are feeling a little pressure.
My $0.02.
Paul,
You do have other advertising methods though. This is not your main source of leads. For me Yellow Pages is something extra you add to your existing marketing to capture other leads you cannot reach otherwise.
For someone who is starting, signing 1 year commitment that would eat all their marketing budget and may produce no leads is not a terrible idea and from what I have seen from Joker’s posts he is just starting.
Well no im not just starting, im asking a question.
I hear all of what you’re saying, but the question did not say anything about allocating 100% of a marketing budget to Yellow Pages. It just asked whether it worked or if anyone had experience with it.
The only time I would suggest that anyone put 100% of their money into one thing is when they can afford to do only one thing well (or if it works so well that there’s no reason to do anything else). And you’re quite right…I would never suggest that anyone put an ad in Yellow Pages and expect to build a business solely from that, especially if that was all the risk capital they had.
Having said that, it’s worth noting that the Yellow Pages is not likely to come after you for a $500/month invoice if you really end up not able to pay, and if you book it in a company name, all the better. But the ads will be out there all year (and then some)…
I’m not advocating going into a deal that you are sure you can’t live up to, but I’m saying that it’s not like racking up a $6,000 credit card debt that will mess up your FICO for years, should you be unable to pay it.
Although I have no experience in marketing to homeowners by way of the Yellow Pages, I would question the liklihood of the majority of preforeclosure prospects consulting their telephone book for solutions (to any other service provider other then a BK lawyer).
I’d be interested in hearing of my perceptions match Paul’s realities—do keep us posted on your results from time to time…
Regards,
Scott Miller