Bandit signs - guilty by association? #askBP

[Alex Cotton]

For those opposed to using bandit signs... is a deal through a wholesaler [who original found the deal using bandit signs] wrong?

Based on the the advice of the BP podcast and blogs, I have decided not to use bandit signs to find my own deals, but I go back and forth on if I should call the We/I Buy Houses signs in the area to link up with wholesalers.

What would @Joshua Dorkin do? #askBP

[Dev Horn]

In a typical market - with Direct Mail - our cost per call might be $150 to $200 (advertising cost divided by # calls).  Those are good leads because we only sent them to/re: houses we want from sellers with equity.

Via Google AdWords, a web lead might cost from $75 to $125, but you get leads from anyone, and even get out-of-area leads from Google.  Cheaper the direct mail, but not targeted.  Still, web leads are often very good re: motivation because the seller is actively seeking a solution.

With Bandit Signs, I've seen guys spend $400 and get 20 calls over a weekend - a $20 cost per call.  Sure, they may not be qualified - but they are similar to those expensive web leads in that the motivation (of someone calling via a bandit sign) can be very high.  These people are interested in selling and seeking an alternative to listing with an agent.

So, on a cost per call basis, NOTHING beats bandit signs because they are so freaking CHEAP to deploy and people call from them!  And the lead quality can be similar to the more expensive leads you get from Google AdWords.

Hope my illustration helps to put it into some perspective!