How to market on a budget

Question

Hello BP,

I'm looking to getting into direct mail, but I don't have a lot of money to do so. What is the best cost/effective way to market for great deals? I know I'll have to spend money, I just don't have a lot to waste in areas that might not bring the best return.

I know I can find certain lists from the county, hopefully for free. So now I'm wondering if yellowletters is best or some other way to mail out for buyers.

Jonathan Johnson · Answer

@Claire Trammell I've seen listsource, I may end up using them. I just wanted to see if there are any cheaper ways to get the lists.

Claire Trammell · Answer

@Jonathan Johnson

Have you tried Listsource.com? I pull lists from there a lot and I am able to search based on location and other criteria, including equity %.

Jonathan Johnson · Answer

@Michael Campbell, @Tamara Elliott-Deering, @Claire Trammell,

This is great. I actually have access to free printing in black and white. I've never printed a postcard though, I'll have to research this.

I had a VA call a couple counties in my area asking for an equity list, no one knew where to find such a list. :( Guess I have to do some more research myself.

Claire Trammell · Answer

Oh! I forgot to add my main thought: as for the actual cost of a direct mail campaign, I would recommend calculating how much you can spend specifically on direct mail each month, then use that as an average to determine your quantity. For example, you find that you can consistently send to 500 leads with your chosen budget. One month may be a little less than your budget, and another month may be a bit more, but in the long run you will average to your budget and still remain consistent in mailing. I really hope I explained that efficiently.. :-)

Claire Trammell · Answer

Hello @Jonathan Johnson!

You have gotten some good advice here in this thread. I like what @Tamara Elliott-Deering said: "The most important part of direct mail is consistency." I would absolutely agree with that. A single mailing is not going to give you the full potential that your list may hold. She is right about mailing multiple times before getting rid of your list. I typically recommend sending a different type of marketing piece every 3-5 weeks for 5-7 months. That gives just enough time between mailings to keep your name familiar but not be annoying.

Tamara also mentioned a BP podcast. I've listened to a couple that deal with direct mail, and thought you might benefit from them as well. Here are the links:

https://www.biggerpockets.com/renewsblog/2014/04/2...

https://www.biggerpockets.com/renewsblog/2014/07/3...

Hope this is helpful!

Tamara Elliott-Deering · Answer

You are correct direct mail is expensive so I make my own postcards with card stock, a paper cutter, MS word, and a color printer, I started with an ink jet and switched to a laser. A good rule of thumb for a mailing campaign is two postcards, followed by a letter and possibly another letter.

You are going to have to go for quality not quantity. So decide what kind of properties you are interested in purchasing and who is likely to have them. Pre-foreclosures and foreclosures is a fairly saturated market, so is absentee owners. You could look for other indicators, I was listening to a BP podcast the other day, I'm sorry I don't remember the number and the guest was talking about his best performing mailing lists and he liked owner-occupied high equity owners, he also suggested going onto craigslist and looking at the yard and moving sales listed in your area, get the address and find out if they are owner occupied. If not send the owner a mailing offering to buy the house. Some list companies offer a free trial or an inexpensive list so you may want to go that route. Studies have shown that handwritten and hand addressed letters get more attention, so does lumpy mail, an envelope with something in it, key chains are very common, so are pens.

The most important part of direct mail is consistency. Track your mailings  you'll want to know how much each mailing cost, how many people it went out to, how many responses you received and how many deals you made. Run your mailings for 3 to 4 months before giving up, some studies show that a consumer needs to see your name at least 6 times for it to register as someone they know.

And don't look for huge numbers if you're converting 1% you're doing exceptionally well.

Michael Campbell · Answer

I'm currently mailing out about 650 letters for my direct mail campaign and the final cost is going to be ~$500.  I think this is fairly typical.  The most budget friendly way to find deals is going to be driving for dollars.