I'm in a market where direct mail is SOOOO saturated. I talked to a property owner today. People are receiving 5-10 pieces of mail a week. I just feel that there has to be something else that's not so saturated to find deals. Anyone else getting this feeling about direct mail? Any suggestions?
Direct Mail works, the questions is what list are you mailing too? In my experience NOD, pre-foreclosure are by far the most saturated list to mail too. Not only do you have many investors, would be investors mailing to them but you also have Realtors and Legal Defense Attorneys fighting for these leads. I have to the story before of when I started and the first foreclosure I every walked in had the floor covered completely in yellow letters, business cards & flyers.
So with that said the simple solution is to switch the list you mail to absentee owners may be the runner up, You have probates since very few people like to put in the work to pulling the list from the clerks office.
What list are you mailing too?
My list has been absentee and equity based properties. No NOD of Pre-foreclosures. When I do get leads, their asking prices have been so ridiculous because they see the development going on and think they should have this price(clearly a side note). But yea, absentee and equity based properties.
Wholesalers, REO real estate agents, driving for dollars, courthouse foreclosure auctions and networking with others in the business is FREE! And the percentages beat the heck out of direct mail.
I have flipped well over 200 properties, I have never used direct mail. But that`s just me, to each his own.
@Ryan Butler with a blank profile there is no clue what you are attempting to find through your mail campaign. If you are looking for properties to flip, or buy and hold, you could find a good wholesaler and let them deal with the marketing. If you are trying to wholesale, you need to find a less saturated niche to market to.
@Deano Vulcano I do that a lot as well, but that type of network does take time to build up. It doesn't happen over night and just like direct mail, you must be diligent with it. I've had much more success that way. @Walt Payne I've dealt with wholesalers and such and that's fine, but I would like to get to the source and the sellers. that's better for my business. I'm a fix-and-flipper, but I'd like to get in contact with wholesalers.
I have tried driving for dollars, and although you can find plenty of vacant and distressed houses, finding the owner and actually talking to them on the phone is a royal pain in the a**. If i mail 50 owners of tax sales and abandoned, half came back undeliverable*(from their county recorded residence)maybe one or two call back.
you can use a skiptracer, but @ $50-100 name it can get expensive quick.
Morris, I`m with you on the driving for dollars. I only mentioned it because it was free (minus the skip tracer). It has not worked for me at all, but I`m lazy, I like the low hanging fruit.
I like only talk to people who have raised there hand and said "I would like to sell my house"....that`s half the battle.
I totally get "direct" marketing. But tired Landlords, out of state owners, probate etc. have not necessarily raised their hands.
I guess your an MLS guy, huh? It helps definitely if you have access, cuz you can contact old listings. I have done direct mail, but you HAVE to keep doing it, otherwise, it's a waste of time, and you gotta do 500+ pieces at least.
@Ryan Butler Average DM response rates are 1% and that's an average. You may get a lower or higher response rate than 1%. DM's are also very tricky mediums to grab people's attention. Try testing your messaging. Split your mailing list in two and see which version performs better.
When direct mail doesn't work - send more mail :)
If it makes you feel any better, I got a 0.0015 call back rate on my last campaign (that's 0.1%) - I switched up the message and marketing piece to test an idea out and that could've contributed.
I'm getting over it by sending out another 2 direct mail campaigns. Keep moving forward.
Have you considered web marketing. Maybe PPC and and organic search to your website? It's a slow process, and it takes a lot of work, but these leads are extremely motivated. In the long run it will pay to be on the 1st page of Google.
I understand the numbers and all of that. Trust me, I send out several thousand pieces of mail a month. My frustration has just increased with the quality of calls. There's always a lot of factors and it takes time I know.
@Ben G. that's pretty much where my head is at these days and looking at building an online presence.
Thanks for all the feedback guys.
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