Response Rates for Purchased Lists vs. DforD

[Jason King]

Hi All, 

Question to some of the seasoned marketers out there - has anyone ever compared the response rates for marketing campaigns derived from a purchased list (via Listsoure, etc.) vs. Driving for Dollars?  It seems that you can much more efficiently get a broader scope through purchasing a list, though even through the filtering process you are likely reaching a lot of unmotivated sellers.  However, when Driving for Dollars, you at least have the benefit of being able to physically assess the condition (granted, from the exterior only) of the property and make some assumption about the level of motivation.  I am curious to see if anyone has performed a profitability or cost-benefit analysis to see which generates more leads. 

I am thinking if you can improve the response rate from 1% through traditional means to 5% through some form of physical assessment, you can reduce your marketing budget by 80% (100 letters to reach 5 people vs. 500 letters to reach 5 people).  Now, I understand that not all dilapidated home owners are motivated, and not all motivated leads have poorly maintained homes, but it does seem that this is the norm (please correct me here if I am wrong).  I am wondering if it is worthwhile to purchase a list, drive the list, and narrow it down to control costs?  Any input is greatly appreciated.