Direct Mail Question?

[Joshua D.]

So me and the wife have a house buying company and do rentals and such. We have a website, i do bandit signs and flyers everywhere. Do a lot of facebook posts too. So we are looking into direct mail with a company called postcard mania they said they can contact out of state home owners and 51% equity in houses and inherited houses and such they would do it all around my area for 5 months once a month post cards. Would cost me $2,800 for everything.$1,200 up front. Good investment or bad? Any suggestions would be great?

[Mike Hardy]

Hey Joshua, I'm a big believer in direct mail. It often gets a bad wrap because so many people get so much junk, but if you can narrow down your list, response rates should be pretty great. 

Try to answer these questions first:

How much revenue does 1 deal generate?

How many pieces of mail will be sent?

What is your expected response rate on that mailing campaign? 

How many of those respondents do you think you can close?

Do you have the budget to test and iterate this marketing channel?

If one deal generates $2,800 or more and you think you can close at least 1 deal in this campaign, then its a no-brainer.

But, I wouldn't get discouraged if the first campaign is a bummer because it's your first time. It's going to be a learning experience, and as Michael said, you'll want to A/B test this as much as possible, but once you have it dialed in, it should require very little maintenance.