Direct Mail Marketing

4 Replies

I am clearly new to the direct mail marketing strategies and I have read on BP quite a few times that you should build your mailing list to at least 1000 names to see any measurable results over time.

I have two questions:

1. Does the list of 1000 have to be one type of potential seller (i.e. A/O, probate, delinq. taxes); or can it be a mix between some of these to equal 1000 names?

2. Is the minimum 1000 referring to mailing 1000 pieces out each month for several months to the same 1000 names; or is it 1000 pieces a week?

Thank you for any advice...

@Dan C. I think you are putting to much thought into this. Whether you have 1000 leads or 200 it doesn't matter. Just start sending them mail. You will also want to make sure that over a period of 6 months you send at least 4 to 7 letters to each lead.


One of the biggest mistakes that we see people make regarding Direct mail marketing is to send out just a few mailings and then quit. It’s much more then Direct Mail. It’s Direct Mail Marketing. The Direct mail we send are called “campaigns.” It’s called a Campaign for a reason. It is very important to understand that your response rates will go up with subsequent and consistent mailings. (As well as valuable, relative and pertinent content) Some people will look at your mail piece for several months or a year before they call you. You want to be the one that is still mailing to these people when they finally become motivated. You want to be “Top of Mind.” Remember that time and circumstances change all things. This is especially true for absentee owners for Real Estate Investors.


A study done several years ago gives you a better expectation regarding your Direct mail campaign results…?

• After the 1st Contact: 2%?

• After the 2nd Contact: 4%?

• After the 3rd Contact: 6%?

• After the 4th Contact: 10%?

• After the 5th Contact: 81%

The study went on to say that 90% of the people gave up after the 3rd contact. If you want to be one of the 10% who stick it out and close 81% of the deals, you must have a system for doing this. Without some type of system, it will never get done.

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@Dan C.

Great questions Dan...

IMHO when beginning you should concentrate on a single group. Its much more difficult to learn Short Sale Strategies and Probate Strategies at the same time.

There really are only two groups of Homeowners. Those with equity sufficient to meet your business model and those without. Which means depending on the type of investor you are buying a property with zero equity could be the most suitable whereas a property free and clear would not be.

Therefore before you market to any group you first must look at your end goal. Myself being a flipper who doesn't sell on terms I need to see massive equity in the deal. The issue with that is it either requires liquid assets or the knowledge of how to buy using vehicles like Sub2, Seller financing, even Lease Options.

Cash is always the best investment model.

However if you want to buy and sell with terms. Either using a wrap, sub2 or sandwich Lease Option then that doesn't require as much liquid asset and this group doesn't need as much equity as the above group.

Then if your goal is buy and hold for long term appreciation and tax strategies then that is a whole different type of prospect and with this group equity isn't your concern as much as your return, calculation of tax saving and possible appreciation.

If you look at the "Most Popular" group you'll find an absentee with equity living the farthest distance away from the property as possible.

There are a few specific filters youll want to use when buying your list for this group. However the largest issue with this group is that it is the most commonly marketed to. Now this could be a good thing as well. Especially if you present your marketing correctly.

As for size of list..

List size matters more when you mix in the media you will be using. If sending Post Cards youll want numbers. If Yellows then you'll need less of a number count however yellows tend to be a nightmare for some new investors as things like answering the calls, dealing with unmotivated callers and the busy work becomes unproductive.

Personally I like a mix... The key to marketing is simple. You have to do it. Some wait and wait and wait sommore letting deals slip to someone else who is marketing.

And be consistent. The worst thing you could do is spend hard earned money and drop out because your expectations weren't met on your first mailing.

Look at marketing like one would dating.

If you met the Person of your dreams, asked them for their contact info yet never followed through with the dating process you probably would not be successful. Very few people get married on the first date yet investors expect to hit it out of the proverbial part the first time up at bat.

These are just my thoughts..

I absolutley commend you for your question and your decision to become a Real Estate Professional

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