Which do you prefer direct mail or bandit signs?

Question

Hi Everyone

This is my fiirst post, and I want to say I love this site! I've learned alot here.

I am interested in knowing which marketing method (out of the two) you prefer to use more and why. Do you receive more solid leads from your signs or direct mail?

For me I receive more calls from bandit signs but more solid leads from my direct mail campaigns.

Would love your feedback  :D

Travis Bontrager · Answer

Definitely depends on the market you are in and the local rules about bandit signs. I would ask other wholesalers in your market what has worked best for them.

Travis
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Brian P. · Answer

M

One thing that is not brought up enough is the loss of signs can be by the sign police, but when I was helping a friend in SoCal we decided to see who was taking them.

The results were the authorities, other investors, self appointed neighborhood sign police, and garage sale types using them as stock. In general we lost more signs to others then we did to the sign enforcement division.

I don't know if it was this site, or some others but I posted a long post on bandit signs and how to make the majority of them legal and how to cut down the loss of others..

So I suggest you try the archives, If my posts are not there I'm sure other posters have covered the subject well enough. But in the right market place bandit signs are a terrific source of business and very cost effective.

Brian

Account Closed · Answer

@Shane and @antonio

I'm asking you because you guys are in CA. I've been afraid to put up bandit signs because I have NEVER SEEN ONE. I've seen some for holiday lights around Christmas, but i just heard that they were really strict here, and since I've never seen one, I just thought that people don't do it.

So, where do you hang them? Have you ever gotten in trouble?

and for everyone: do you hang them yourself or is there a service?

Ben Wilson · Answer

Hey Lolita,

Definitely more and better leads from direct mail - that's my experience and that of most of the people I speak with.

However, signs are still a big part of how we find wholesale buyers and sellers.  We put up 20-25 every Saturday morning.  Why? Because we still get deals from them, so the ROI is acceptable.  It's also one of our weekly wholesaling disciplines that I believe are a critical component of our success.

I also highly recommend them for new wholesalers because they are relatively cheap and if you do them right they can stay up for months.  Also, even though they may not be the best leads, they give people practice talking to sellers and making low offers - which in my opinion, in addition to understanding direct marketing, is the #1 key to success in wholesaling.  You can get better talking to any seller, so the more the better IMO, especially when you are starting out.

Lolita Sheriow · Answer

Thanks for the responses guys : ) @Realtyman word of mouth is one of the best for sure but for someone new and starting out that would be a difficult. @Shane that is why I mostly use direct mail because my signs tend to disappear fast too : ) Yellow letters work great! @Antonio my second post was for you.

Lolita Sheriow · Answer

So you like receiving more leads in the long run then solid leads? I have bandit signs that stay up for awhile but I also get calls weeks or in some cases months later from leads that held on to my post card or letter.

Shane Haffey · Answer

In my area bandits are difficult to keep around.  They go MIA quickly if you don't rotate or find a home that's visible but hard to get to on foot. My handwritten direct mail campaign gets me roughly a 2-3% return.  With my conversion rates I end up spending around $400-$500 per deal I pick up.  Keep in mind I'm targeting NOD's and Trustee sales which end up being mostly short sales.

Dale Osborn · Answer

I would opt with not choosing between these choices. For me a sign in the window of the property and word of mouth advertising by friends, family, neighbors and of course yourself seem to provide the results desired. Antonio felt obligated to choose one or the other. I think there are better options available. Then again, what works for one person may not work for another person or it is a different market segment, etc. You will have to work out what works best for you in your market.

Antonio Macias · Answer

I am currently marketing in California and I am getting the same results you are getting.  I get more solid leads thru direct mail.

I get all kinds of leads from bandit signs but some end up being tire kickers.

If I had to choose one I would pick bandit signs.  I haven't really put too many out and 4 weeks later I'm still getting calls on signs that never got picked up.  I will be placing tons of them out soon.