OMG - Direct Mail Really works (in the right market)

10 Replies

So hopefully this isn't too long. I haven't actually closed any deals yet from it so it's too soon to put in the success section but here goes...

I have been direct mail marketing to various parts of the Denver metro market for the past 6 months. I've gotten about 0.5-1% response from my direct mail and I've hit the first area 5 times now. About half of my calls are "take me off your list" in some form or another. From what I read here that is absolutely atrocious response rate. So out of about 10,000 letters I have done two deals (not bad) and my marketing has paid for itself but I'm not making a living at it. I'm crunching the numbers and figure I need to do about 10K mailings per month to meet my income goals. That is a ton of work so I'm trying to figure out how to ramp up my results. I'm thinking, my letter needs work and maybe I should do post cards since they are cheaper (but they have a lower response rate).  I'm reading here and listening to pod casts and I can't figure out what I'm doing wrong. I've heard several times "Denver's a tough market". Finally I decided that this month I would divert some of my marketing dollars to another market. 

Wow, what a difference.  I mailed about 800 letters. So far I've had about 30 calls and only one was "Take me off your list." I have half a dozen solid leads from obvious motivated sellers that passed phone screening. I have one offer verbally accepted with the contract sent via email and am going to make two more offers today. This is amazing.

Direct mail really works. Thanks to all for the tips shared here that have helped move me onward and upward. Thanks to @Joshua Dorkin   for the site to learn on, @Michael Quarles   @Jerry Puckett   and @Dev Horn for sharing your tips here and on the pod casts. Looking forward to posting in the RE success stories here in near future.

Bill, thanks for sharing your story, always good to hear a direct mail sucess story! It's one of those things that takes time and money but if you get it right, it is well worth it. Good luck closing those deals!

That's awesome @Bill S.  !  Really looking forward to reading your success stories.  

Congratulations @Bill S. , those are great results. I see it pays off to pay attention to your numbers and not being afraid to test other markets if need be.

@Bill S.   who are your primary leads? Absentee owners, probates, pre-foreclosures, etc?

Originally posted by @Bill S. :

So hopefully this isn't too long. I haven't actually closed any deals yet from it so it's too soon to put in the success section but here goes...

I have been direct mail marketing to various parts of the Denver metro market for the past 6 months. I've gotten about 0.5-1% response from my direct mail and I've hit the first area 5 times now. About half of my calls are "take me off your list" in some form or another. From what I read here that is absolutely atrocious response rate. So out of about 10,000 letters I have done two deals (not bad) and my marketing has paid for itself but I'm not making a living at it. I'm crunching the numbers and figure I need to do about 10K mailings per month to meet my income goals. That is a ton of work so I'm trying to figure out how to ramp up my results. I'm thinking, my letter needs work and maybe I should do post cards since they are cheaper (but they have a lower response rate).  I'm reading here and listening to pod casts and I can't figure out what I'm doing wrong. I've heard several times "Denver's a tough market". Finally I decided that this month I would divert some of my marketing dollars to another market. 

Wow, what a difference.  I mailed about 800 letters. So far I've had about 30 calls and only one was "Take me off your list." I have half a dozen solid leads from obvious motivated sellers that passed phone screening. I have one offer verbally accepted with the contract sent via email and am going to make two more offers today. This is amazing.

Direct mail really works. Thanks to all for the tips shared here that have helped move me onward and upward. Thanks to @Joshua Dorkin   for the site to learn on, @Michael Quarles   @Jerry Puckett   and @Dev Horn for sharing your tips here and on the pod casts. Looking forward to posting in the RE success stories here in near future.

Good work Bill!

@Darien Gipson  - I mail to a number of lists but this one was out of state owners. Listen to @Michael Quarles  pod cast and check out his website. He breaks down the lists in terms of greatest chance of a deal with fewest number on list.

In the new market I have not been able to find foreclosures nor probate lists. 

My experience so far is that the highly targeted lists don't produce enough volume in my area to make a living from them.

Man I love to hear this kind of story, Bill!  Wishing you even more success in 2015.  Make sure you hit it hard in January; people often set new year goals to deal with financial issues, and we often see more motivated sellers contacting us in January than any other month of the year.

"Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish." ~ John Quincy Adams

Nice! If you don't mind me asking, which area have you started to target?

Awesome, that's great to hear Bill. I can't wait to hear the success stories.

What do you think are the main differences as far as the areas and the targeted recipients? Did you only mail to out of state owners?

Great job Bill!  Glad you are finally having some success in Denver (or somewhere else).

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.