Originally posted by @Cody L.:
Originally posted by @Sharad M.:
Originally posted by @Account Closed:
Originally posted by @Sharad M.:
Originally posted by @Jerryll Noorden:
Originally posted by @Sharad M.:
Originally posted by @Duy Nguyen:
Hello all,
What kind of marketing strategy are you guys doing nowadays? Does DM still work in today’s competitive market? I sent out 3.9K letter this past month (I am committed for a 6 months campaign). It has been about 4 days since my mail hit, I got about 16 calls, most of them goes: “ f off”, “ don’t send me anything”, “ my house is not for sale”. No actual lead yet.
What are your thoughts? I am wondering if DM still works. Thanks in advanced
Hi Duy, Direct Mail still works but it's a long term marketing strategy and specially in a competitive market like Houston, TX you have to very careful with your list. Don't mail to list like Absentee High Equity and expect to get a deal on 1st mailing. Try more niche lists like preforeclosure, tax delinquent, water shut off, code enforcement, etc.
And IF you are going to do DM long term, then commit to 4-6 mailings to the same list. The magic of Direct Mail comes handy over long term. We get calls from people that we had mailed several months ago but they hold on to the letter or postcard and call back when they are ready to sell their house.
I would have other marketing going on also but if you have to pick a marketing strategy, pick the one you can stick with THE longest because THE MOST important thing with marketing is consistency.
Also sending mailings to the same list is also a myth. It is an illusion it doesn't work! I am telling you it is an illusion.
It takes a long piece of text to explain exactly why this doesn't work and why it is an illusion, but I will if I have to.
Just because Direct Mail didn't work you doesn't mean it doesn't or won't work for anyone else. Here's the actual data. We closed 41 deals from Direct Mail.
I am part of several high level real estate masterminds and majority of the very top investors use Direct Mail for consistent deals. Again just because you didn't do so well in Direct Mail doesn't mean it doesn't work.
Please don't misguiding people that sending to the same list is a myth. Your incorrect statements and lack of experience about Direct Mail can hurt a lot of people in lost time and money. You are a freaking expert in SEO but that is not THE ONLY lead gen. To be honest, if I could get more traffic from my SEO I would love that because the ROI will be through the roof with SEO but you are leaving so much money on the table by not doing other marketing. We buy A LOT of houses from older people and they are not tech savvy and not going to Google to look for a home buyer.
People are reaching out to them via Cold Calling and Direct Mail.
I have tried MANY marketing channels so I am speaking from experience.
The numbers below don't include revenue from 14 deals we have in the pipeline that will be closing soon and majority of those came from Direct Mail as well.
@Sharad M.: Nice numbers. Amid the noise and bluster I couldn't find how many mailers you sent to get 1880 leads. Do you mind mentioning that? And did you send envelopes or postcards? I recognize that the list and the territory play a major role, but I am curious.
The numbers are over 1.5 years and now we are sending about 25,000 mailers every 2 months so on average 12,500 mailers a month and we expect to get 2 deals from that so on average about 6,000 mailers/deal at cost of $2,500-$3,000/deal. The numbers I posted are from last 18 months or so but with better tracking our ROI is getting better.
We alternate between PC and letters. Our cost for postcards is 36 cents and letters is 48 cents for a blended average cost of 42 cents/mail piece.
Not to get all Greta Thunburg on you, but do you have any moral qualms with basically sending trash to people? I get it that it's a numbers game and if you send 10,000, then 1,000 will open, 100 will call, of that 10 will take an offer and 1 will close. That's a lot of waste man, no?
It’s a numbers game. Most people will be upset but there are people who you actually help. People who are going through some really rough times and you are sending all that mail or other marketing to reach the person who really needs your help in getting them out of a bad situation.
The game with marketing is to keep getting better and better at it every time so next time instead of 10,000 you only have to send 7,000 to get same results and then with more data you get that number to 5,000. Hope that makes sense.
