@Tim G. Direct Mail works in some markets better than online marketing just like online marketing will crush direct mail in other markets. You really have to see what marketing channels performs best in the market you are in. A blanket statement like Direct Mail doesn't work or Online Marketing sucks without actually testing in your marketing what's working and what's not working will not be very valuable.
We buy a lot of houses from older sellers and if we were just relying on online marketing, we would completely miss out on opportunities to buy from them. I do agree with you that over time, marketing will move more towards online but we are talking about several years for that to happen.
There is a big generation gap between sellers who are in their 30s vs sellers who are 55+. A lot of sellers we buy houses from are not going online looking for a company that buys houses. Generally speaking, they are more passive in that they respond better to marketing pieces that come to them.
At the end of the day, it's a numbers game, if I spend $100 in marketing and make $200 from it, I have no reason to stop. EVER.
@Josue Velney is in a super competitive Boston market but is still able to get deals from Direct Mail.
@Cody L. I do the same thing where I throw away all of the junk mail but just think about it for a second. Let's say you are in market to buy a car and there's a local Toyota dealership in your area that sends you a mail every month non-stop. Now let's say Toyota is one of the cars you are considering to buy, chances are that you will give that local dealership a call or at least check them out. That's all Direct Mail does. It gets you in the game when the seller is ready. They may not sell to you after all your effort but it may get you a chance to be in front of the seller.
The people who are sending you 10,000 mailers per month must only be doing that because it works for them, they make more money than they spend on it because they have tried it and it works and they make money.
The only way to find out what works is by trial and error.