Hello, there has been a debate between my partner and me between the better use of our marketing funds. Facebook Ads / Google Analytic Ads vs Direct Mail Marketing. Has anyone figured out which has the higher success rate? I'm sure it's dependent on the market, but we live in Chicago where I'm sure both would have their pros/cons. Thank you!
Updated 4 months ago
This would be for finding off market properties
@EJ Hyman All 3 are great, but to accurately answer your question, it honestly depends on who you're looking for..
If you're looking for off market deals - direct mail works rather well. You could also choose to use some funds to get brokers/realtors to kick you leads.. who wouldn't love some extra bucks for passing along info
If you're looking to sell properties I'd have to say facebook works wonders for targeting people in a specific geographic area and I've had some real success with it for my business. The FB analytics dashboard is also phenomenal, albeit a little creepy with how much info you have access to.
If you're looking to promote some type of RE related business/service google adwords is great, but can be expensive. Optimizing the SEO for your site will really help in getting organic search traffic on google.
Best of luck!
@EJ Hyman What kind of property are you looking for?
@Grant Rothenburger off-market properties. Single-family homes in the South Chicago suburbs
@EJ Hyman My experience with single family homes is direct mailing which worked really well. However FB and Google are also proven to work. Around here a lot of the homeowners that end up actually selling to investors are older people who don't really utilize the internet much. Hope that helps a little. Either way, most of your deals will come from following up, not from the first call/contact.
With all due respect- anyone who tells you that facebook advertisements is the way to go is way out of touch with social media and what is going on in the world.
I was spending 20k a month at one point on facebook ads- up until everything got changed. I suggest you google Facebook and what is going on before throwing another penny at an advertisement with them.
What I did was hire a social media marketing company to help me grow my BRAND- and create something bigger then an advertisement My .02
@EJ Hyman the way to know that answer is to test and track your results. Split up your campaign funds between the 3 and track on a spreadsheet your leads or closes divided by ad spend per marketing channel. The one with the lowest cost per result is the channel to go with.
Some investors go crazy with segmenting and split by customer type such as probate, foreclosure, divorce, etc.
You can only manage what you measure!
Hey @EJ Hyman ! I think one thing to consider is direct mail is an outbound marketing strategy and AdWords is an inbound strategy. When you are mailing directly to people, you are reaching out to people who may or may not need your service, and helping the ones that do. With AdWords (and the right strategy) the customers that need your service are reaching out to you instead. This leads to a lot less sorting through motivation, and a lot less angry "remove me from your list" calls.
While I highly reccomend AdWords, I work with plenty of others who have a successful direct mail strategies. You just need to do some asking around or split testing to find out what is going to work best for you in your market. If you are going to stick to online based marketing, consider SEO as well. That is your long term solution to generating quality inbound leads over time.
Hope this helps!
Quick thing: I think you want to clarify you language. I'm 99% sure you mean FB ads vs Google adwords (paid search) vs. direct mail.
Typically speaking direct mail will be the most targeted but the most pricy on a per unit basis. ($.50 cents plus per send). Your success here depends on the quality of your list but good quality generally speaking could be 1-2% (so $25 - $50 per lead)
FB prospecting is very untargeted as the person has shown no intent (you're probably just going to use targeting such as the zip code and potentially one or two other factors that you can target with using fb relating to home ownership and income or debt levels). Expect typical cost per website visitor (CPLC) to be $1-4. (this is a function of $10 cpms x .25-1% CTRs
Adwords is pretty targeted and has intent as you can target by zip code and high intent keywords such as "sell my house for cash etc." but it's limited to people searching for those high intent phrases which may not be a large number. It's also going to be competitive (high priced) if you are looking in a fairly competitive area such as chicago. Cost can vary a lot here.
Anyway, if you can afford it and easily answer your phone, I would start with direct mail as it will be the most predictable.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing