Best marketing response rates

15 Replies

I'm just curious but I'd like to ask what is the marketing success rate for those working in the Los Angeles/Orange, Riverside and Ventura counties. What works best for you? For example, if you send out yellow letters, what % response do you receive from those? How about bandit signs, CL posts, etc.

1% or less (I hit 0.8%) - all direct mail. I've hung bandit signs before but I stopped because it violates local code in some cities (and with direct mail you can target a specific area/equity...etc)

I'd love to hear from other SoCal people about their success rates

In SoCal to Mexico you'll be a superstar at 4-6 percent on yellows. Our zips get 1-1.5 and depending on the postcard you'll get 1/4-1.

However I would love to be in that market. I have to buy 4-5 houses in my market to make what some customers do on one deal in that market

Not fair.

@Michael Q. does the response rate vary significantly depending on what your marketing for?  Investor buying houses for cash  vs. Realtor marketing to owners with equity to list at retail?

It does vary... Not due to the letter but to the list. 

A question about response rates... Many posts seem to converge on a response rate of about 3% from yellow letters per mailing... Many posts also say to mail at least 7 times. 

If you mail 7 times and get a response rate of 3% each time, than 21% of your list will respond?  21% of your list responding even if you mailed to each person 1000 times seems ridiculous, can someone please clarify.

To this point... even a "low" response rate of 1% should yield a 7% total response from your list after 7 mailing... also very high and unrealistic.

Good question

It depends one what you are marketing for, how you are marketing, and what filters are used in researching your leads. More we research and refine out research criteria the better are results.

For example marketing Probates has relatively lower response rate when compared to marketing for Probates leads with RE.

Originally posted by @Peggy L.:

I'm just curious but I'd like to ask what is the marketing success rate for those working in the Los Angeles/Orange, Riverside and Ventura counties. What works best for you? For example, if you send out yellow letters, what % response do you receive from those? How about bandit signs, CL posts, etc.

 Like Zaid said the response rate will be less than 1% in the areas you mentioned. It will be lower in Los Angeles/ Orange and higher in Riverside and Ventura.

Of the 1% many will not even be real responses.  There will be a bunch that will just pull your chain or have unrealistic expectations of sales price.  Most have access to their Z estimate and will expect that lol. 

I suppose all it takes is one good deal to get your money back though, but it will be a lot of work.

I'm a landlord in Los Angeles and get about 10-15 post cards/ yellow letters a week from investors...who know perhaps some day I'll have to sell for quick cash? :)

I'd be interested to know the top ROI campaigns.

Yes, it seems the LA/O.C market is very competitive right now.  I'm about to start a marketing campaign myself.  What do you think is the best list to market to in LA/OC right now -  where the owner isn't already getting swamped with investor letters?

random non-owner occ SFR? (how many of these people even want to sell?)

NOD? (these people must get dozens of letters a day in LA/OC.)

30,60,90 day lates? (is this list even available to purchase anymore? can't find.

Larry Chafe
www.greatcalhomes.com

Not sure Larry. 

I have sent out 3500 letters to 1-3 unit/ Absentee Landlords/ with equity/ throughout South and South East LA / Long Beach and have only had about 5 responses. I think three called to ask me to remove me from their mail and the only three that wanted to sell were already on the MLS. I've hit up that list 3 times in the last 8 months.

Also sent about 200 yellow letters specifically to driving for dollars houses and referrals + left about 1000 business cards/ letters directly on peoples doors in the last couple years.

One angry landlord lady yelled at me,"Now why on earth would I want to sell to you, I've owned this for 15 years. I've already asked you to take me off your list! ---etc etc"   I apologized, told her I'd remove her from my list and gave her some advice-- to simply put the post card in the recycle bin.  

@Larry Chafe  

It is a competitive market... However your multiplier is huge. 

As for the Mortgage Late List it is available.

If someone calls to asked to be removed from your list, do you do that or just keep mailing hoping someday they will be ready?

Originally posted by @Danny Bower:

If someone calls to asked to be removed from your list, do you do that or just keep mailing hoping someday they will be ready?

 I personally remove them. I would assume that's the right thing to do. Plus I don't like when people are made at me...lol

Since this is a topic that comes up often I'll chime in with a Public Service Announcement reminder:   While response rate is important, the metric that really matters is how many deals you close rather than how many calls you get.  I've gotten huge response rates from some mailers that didn't yield a single deal, and vice versa.  

I am in the DC market which is also extremely competitive.  

Alison, I too am in the D.C. Area.  I sent out about 2000 mailers in 3 or 4 seperate mailings to a targeted neighborhood.  I got only 1 response but I ended up closing that deal in Annandale and putting over $50k in my pocket.  My response rates are rediculously low in this area.  It takes a lot of work to get one deal but if you do it right the deals will come and the pay off will be worth it.  But, like Alison said, it's about getting the deal not the phone calls.  

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