​Questions Answered: Direct Mail for Real Estate Investing Part I

In the world of Real Estate Investing, this question is always in the back of your mind: “Where will my next deal come from?”

As you have grown and learned the ropes you have been lucky to utilize tools that are at your fingertips. BiggerPockets is a prime example. Even on this site the topic of direct mail is consistently discussed, and yet there are so many forums to search through to find answers to the questions you have.

I have been fortunate in being employed by Michael Quarles at YellowLetters.com for a few years now and learned more about direct mail than I ever thought possible. Michael has always been generous about giving tools and information to fellow investors, both seasoned and newbies, across several social media sites, BiggerPockets, and his own site www.MichaelQuarles.com. And through the years he has been generous and patient enough to not only answer my questions but give me detailed explanations described practically.

There are so many small details that need to be looked at to produce a successful mailing campaign. Through customer feedback and our own mailings, we have seen things that work, things to avoid, and things that can help save you time and money. Whether you use our direct mailing service or you go another route, here are some of the most common questions I have seen here on BiggerPockets and heard over the time I have been employed with YellowLetters.com:

1) What types of mail pieces’ work best? Postcards, yellow letters, typed letters, zip letters, or greeting cards?

This is the most common question I hear; the answer is relatively simple: all the above. Of course, you will want to test the market you are in to see what works best in your area.

While each of the mailing pieces have pros and cons, they each show results. However, it is hard to say which one is the best. It is a given that you want to realize the full potential of your mailing list, but a single type of mail piece will not yield its maximum response. Look at it this way, one person may be drawn to a postcard while another may find a casual yellow letter more alluring. Your goal is to appeal to a wider range of potential sellers to realize the full potential of your lead list.

I do want to clarify that the type of mail piece will not create motivation. In fact, you cannot create motivation that is not there. However, you can be available to someone when they become motivated. This leads me to the next example of why a single type of mail piece in a campaign limits your list’s potential: a single type of mailer becomes too familiar to the recipient. Your goal should be to have your message read entirely. You want the potential seller to see your message and become familiar with your name and contact information so that when motivation arrives you become the first name in their minds to contact. If you send the same mail piece repeatedly, the recipient will be more likely to disregard as it becomes more familiar to them, even if the actual verbiage has changed. Sending the same message in a different format each time increases the likelihood of your message being read in its entirety every time.

In short, there isn’t necessarily a mail piece that is best. Plan to switch up the pieces with each touch to reach the maximum response rate from your list.

2) What are the response rates for direct mail campaigns?

I understand that the cost of a direct mail campaign may cause you to question if it is worth the money spent. Although, by looking at the response rates as opposed to the cost per piece, the money spent becomes less of an issue. The potential should be the drive behind mailing direct.

Since a campaign can include any number of combination of mail pieces, the most accurate way to answer this question is to give the response rates we have seen for each individual type of mailer. As a disclaimer, these response rates are based on our customer feedback as well as our own mailings throughout the years. I will also include the average types of callers you can expect.

Letters- This includes our yellow letters as well as our typed, professional letters. The average response rate is around 8%-9%, and consist of all kinds of calls: angry calls, curious calls, tire-kickers, and quality calls.

Postcards- This encompasses all the various types of postcards and sizes we offer. The average response rate is around .5%, and is mostly quality calls.

Zip Letters- The average response rate is around 2%, and is mostly quality calls. Tip: zip letters are great for follow ups.

Greeting Cards- The average response rate is around 2%, and is mostly quality calls. Tip: greeting cards are great for follow ups and great for the holiday season.

3)How many and how often should I mail a marketing piece to the same lead?

In the average market, direct mail tends to work best when you send a campaign of 5-7 different pieces, 4 weeks apart from each other. Now if you are in a hotter, more competitive market a drip campaign may need less time between each touch, however, on average 4 weeks is the sweet spot.

Always remember the importance of follow ups. A single mailing to a list will not be enough. Sometimes it takes 2, 3, or even 4 mailings before you receive a call. Now, this isn’t to say you won’t receive any calls in the first few touches, but statistically speaking it does take a few touches before someone will take action and call. Also, remember that you are not creating motivation with your mail, but the potential seller may not be interested in selling when you send the first round, but in round 3 their situation may have changed and they are motivated now. And in some cases, it may take some potential sellers time to realize you are an actual person interested in their property.

I hope this was helpful as you explore the world of direct mail in your real estate investing journey. There are more questions to be answered, so stay tuned for the Questions Answered Series to continue.