Marketing - Inbound vs. Outbound on a $1000/month budget for the next 6 months...which is more effective?

Question

Hello BP!

We are about to begin a marketing campaign. We have heard all the positive responses regarding directmail (Outbound) marketing. I haven't heard much about inbound marketing for example Facebook. I have a question. Has anyone had success marketing for motivated sellers on Facebook? My budget for the next 6 months is a $1000/month. I want to get the best return on my investment. I feel like direct mail works however EVERYONE seems to be doing it.. I haven't heard about too many people utilizing Facebook to find motivated sellers. Does anyone have any insight they'd like to share regarding this subject? I would love to hear from someone with experience in both Outbound and Inbound marketing. Thanks in advance BP!

Brian Watkins · Answer

a Duong Are you marketing for cash buyers?

@Bill Bodziak Those are pretty discouraging numbers. I can see why you took another approach. BTW that picture seems super accurate! Haha.

Chris Soignier I am learning as with other members feedback that the direct mail approach is better because of the ability to filter a list to specifically target your desired audience. If I were doing a "cattle drive" Facebook would be the way to go however this is not the case. Thanks for your feedback.

Brian Watkins · Answer

@Dan Barrett Best of luck to you cracking that code. I know it's possible however I have a limited marketing budget ($1K/month for 6 months). I need something that has been proven to work however please keep us posted on how your software is coming along if no one else I'd be interested in using it once the bugs are worked out.

Omar J. · Answer

@Brian Watkins Adwords hands down.

I'm not promoting my services, but I do this for many clients with over 100 units and we get them a ton of great leads using Adwords.

Just mentioning because I know it works if you follow a basic process.

Bill Bodziak · Answer

I have tried paid FB advertising to drive traffic to open houses...... I did it for about a month and target certain areas with the targeting criteria that would be most qualified to purchase the home that I was hosting. I had 0 results/leads. I have better turnouts spending 30 minutes going door to door with door hanger invites to neighboring homes a day or two before the advertised open house....

Brian Watkins · Answer

@Cody Alexander thanks for your response.

You said you don't see Facebook doing much as far as finding motivated sellers. Have you done paid advertising on Facebook? What results did you get from it? I understand that DirectMail works. I do plan on implementing that. Facebook however has 968 Million active users who visit the network on a daily basis. Looking at the numbers it's quite unbelievable that FB is not a good source for leads.

@Michael Quarles thank you for your response as well. You evaded the question just a little bit.. :) I see that DirectMail has been very good to you. Has it been so good that you that you don't see the need to use Facebook? Or have you tried Facebook's paid advertising in the past and found that DirectMail Has the better return?

Cody Alexander · Answer

@Brian Watkins There's a reason everyone is doing Direct Mail, because it works. There are multiple ways to market, @Dev Horn posted this a couple days ago:

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In order of productivity, based upon lead quality & cost per lead, across over 50 markets in the U.S.:

1) AdWords (Google Search) - depends a lot on the keywords you use...2) Direct Mail - mix it up like Cody says, & only mail to people with equity!!3) Outdoor - from bandit signs, to billboards, to complete car wraps...4) TV spots

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Facebook would be a free way to start getting your name out there, but i don't see it doing much for you as far as finding motivated sellers. When you use Adwords, you know people are actually searching for services that you offer. When you send direct mail, you are targeting specific leads that match your criteria.

@Michael Quarles sends about 220,000 pieces of mail per month all over the country and is buying at least one house per day. That is just a large scale example of what direct mail can do for you.

Michael Quarles · Answer

if everyone is doing what you want to do then you need to figure out a way to standout.

heck answering the phone or returning the call promptly will put you ahead of most.

However in reality our job is to be present when Horshack raises his hand.  A highly motivated prospect cares very little about anything other than the resolution to their situation.

So learn who is likely to raise their hand and what it is that they need solved.

Dana Duong · Answer

More or less. We're offering a 12-month bond that goes towards building retail, mutlifamily, and medical facilities.

Brian Watkins · Answer

@Omar  J. I don't mind that your promoting a useful service. Please send me a colleague request. I'd like to learn more about what your working on and how I can use it to accomplish my real estate goals. Thanks!

Dan Barrett · Answer

For sure! I'll keep everyone updated. (It's not software, though, just a marketing approach, similar to what I do in AdWords.)

I have a few clients doing beta testing soon, so we'll see what happens!

Marketing - Inbound vs. Outbound on a $1000/month budget for the next 6 months...which is more effective?

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