When Direct Mail Fails, Try These 3 Marketing Alternatives

When Direct Mail Fails, Try These 3 Marketing Alternatives

2 min read
Marcus Maloney

Marcus Maloney is a value investor and portfolio holder of residential and commercial units. Marcus has been named the “Equity King” for his impressive ability to find real estate opportunities with massive amounts of equity.

Experience
Marcus, a high school dropout, went from G.E.D. to M.B.A. Although his education has a major impact on his investment philosophy, the real impact came from his upbringing.

Marcus thrives on completing successful transactions. As a young kid, his parents and grandparents faced many challenges; as a result, it made him think of ways he could help. His mother and grandmother were avid investors—not in the market but in people. Marcus was a recipient of those investments. And his early years were hard work growing up on a farm.

Marcus was a strategist at an early age. To relieve the burden of his family buying him clothes when it was time to return to school, he decided to make a small investment that paid big dividends. Marcus decided to purchase a small piglet at the beginning of summer, feed it until it became fat, and then sell it to a local farmers’ auction before the school year started. This was one of his first transactions and the beginning of his adventure of finding equity in every opportunity.

Marcus’ hard work continues today: He has completed over $3.3 million in wholesale transactions. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. Although wholesaling provides great money, he saw the opportunity to buy some of the deals he found and convert them into cash flowing rentals.

Marcus currently holds seven rentals, two of which are commercial units. He’s also done the unimaginable and purchased a school, which was converted to a daycare center. Again, he turns what is a marginal profit into a significant equity position. He leverages the equity by using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy to increase his portfolio without any money out of pocket.

Marcus has been featured on numerous podcasts, such as the Louisville Gal Podcast, the Best Real Estate Investing Advice Ever podcast, FlippingJunkie, and many others. He’s currently a featured blogger for BiggerPockets, the largest community of real estate investors in the world.

Along with completing transactions and working to build his portfolio, he provides mentorship to aspiring investors. This is done through one-on-one interactions and through his successful YouTube channel and blog.

Marcus does utilize his M.B.A. for more than real estate. As a consultant for a successful non-profit institution south of Chicago, he uses his expertise in the development of human capital. His philanthropic efforts help existing stakeholders develop in their capacity to serve those in need of assistance.

Education
Marcus completed his M.B.A. in 2011 from Olivet Nazarene University.

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Investing in real estate takes some unique skills. For instance, an investor must be able to see value where no one else can. He or she also needs to be able to find deals no one else can find.

When searching for deals, one approach that’s proven to be very profitable for investors is using direct mail. But lately, direct mail doesn’t seem as profitable—and in some markets, results are just plain horrible.

What Should You Do If Your Direct Mail Results Are Atrocious?

In my home market, direct mail was the way to go a few years ago, but now other strategies are much more profitable. We had to pivot—and pivot quickly—in order to sustain our business. As marketing became more competitive, we had to become more strategic with our marketing dollars. We also had to become more creative.

However, with creativity comes risk. We didn’t know if some of the new strategies would appeal to the masses. We weren’t certain how homeowners would respond to our message. Regardless, we had to try.

real_estate_direct_mail_101

3 Alternatives to Direct Mail Marketing in Real Estate

1. Ground Team Approach

One strategy to use instead of or in conjunction with direct mail is to deploy a ground team to knock on doors. Although this can work, it is extremely time-consuming. It is also a strategy that takes tons of supervision, because team members can become discouraged if they are doing a ton of legwork without securing a deal.

Similar to sending direct mail, the ground team can pick a target area, walk that area to speak with homeowners, and ask if they have any interest in selling. In the event no one is home, leaving door hangers or business cards can be a resourceful technique.

Related: Disappointing Direct Mail Results? Here’s What You’re Doing Wrong

2. Cold Calling/Robocalls

With the decrease in response rates with direct mail, many have moved to cold calling and found success with this strategy. However, with an increase in calls of this type, positive outcomes are fewer and farther between, similar to direct mail. Also, with the recent crackdown by the FCC and new legislation being introduced (as described in a June 2019 Forbes article), progress is slowing further. [1]

Cold calling might still be a temporary solution—especially if a warm call of some sort is used. A warm call refers to one where a homeowner opts into some sort of service that you provide. This is becoming increasingly difficult, however, due to the amount of attention these calls are getting.

3. Relationships

Good old-fashioned relationship building is always a tried and true way to find deals. Establishing connections requires being part of the community and knowing the community. A great way to reach homeowners is by leveraging other investor networks. This can be done by building a network of investors who have confidence in your ability to close deals—by simply being a closer (and having that reputation), deals will flow your way.

In addition, create relationships with those who are known to find deals, this can be other investors, Realtors, brokers, etc. By fostering positive relationships, generating a steady deal flow will be a non-issue.

Related: The Simple Reason Most Direct Mail Campaigns Fail to Produce Leads

The Bottom Line

These are just a few alternative strategies to use if your direct mail numbers are atrocious. More exist, too, such as social media, email campaigns, radio/TV ads, youth sport sponsorship opportunities, and others.

Being creative and being able to pivot is vital in finding and securing deals.

Sources:

[1] https://www.forbes.com/sites/kennethcorbin/2019/06/21/house-lawmakers-poised-to-move-on-bipartisan-robocall-bill/#1493cfd5a5b8

Which marketing strategies did I fail to mention?

Leave them in the comment section below!