Direct Mail Response Rates and Conversions Rates

8 Replies

Good afternoon all,

    I am a new investor that has a goal of getting 6 subject to/lease option deals in the next 3 months. I have some experience with marketing and copy writing but I hired a professional from elance to create my direct mail marketing pieces (Post cards, 3 step sales letters) to increase my response rate.

My question is what would be a good response rate from direct marketing on the 1st, 2nd, 3rd and 4th mailing? Also what would be a reasonable lead conversion rate for someone starting out in the business(I'm new but I've been studying realestate for years so I wouldn't say I'm totally green)? 

These numbers are important to me because if I need 6 deals and I know what the response rates will be and what is an expected conversion rate for someone new, I can plan my marketing accordingly instead of flying blind. 

Ex: 12% response rate for direct mail, 50% conversion rate = 100 directmail pieces to get 6 deals

I know that's a rose colored view of what I would like to happen but you get the drift of the question, any help would be, well helpful. 


  Newbie from GA

@Jason Morgan  that's great! I hadn't thought about that but hiring someone to write your mail pieces is a great idea. However, to answer your questions, it depends. 

It depends on what kind of mail piece your sending out. i.e yellow letter,postcard, typed letter, zip letter, etc. Each one gets a different response rate.

Also, what list are you mailing to? Absentee owner, probate, evictions, pre foreclosure, etc. The list have a lot to do with the response rate as well.

I would recommend you watch this video from @joemccall and you can get a "rose colored view" as to how you can set up a marketing plan that will get you to your end results.

Good luck! 

Thanks Rene for the response,

    After posting to this forum I contacted yellow to inquire about response rates. They told me .5% for postcards, 8% and up for yellow letters and 2% response rate for zip letters. Now that I have one variable solved, the other variable would be the closing rate if I use a targeted list of 30-90 day lates with direct response message of taking over their payments/owner financing opportunity. Will be targeting customers with 0% to 30% in equity meaning I will have less competition with wholesalers and realtors because these deals won't have a lot of equity.

Question now is what would be a reasonable close rate for the incoming calls I recieve? I have a lot of book knowledge on Realestate but nothing done on the street, yet. If I need 6 deals and I close 1 out of 5 leads I will need to mail out 1,715 pieces of mail if I was 50% wrong on the response rates that were provided to me from

Postcard: .25%       Yellow Letter: 4%      Zip Letter: 1%        Avg.: 1.75%

Est. Close Rate: 20% = 1,715 mailings = 30 calls = 6 accepted offers

Would the close rate be too high or too low?

@Jason Morgan  I admire your preparation and math skills but I think you're making things a little too complicated than they should be. If you're only planning on doing direct mail only I can tell you that you need to speak with 20-30 sellers before you can close a deal as a beginner. As you gain experience, your close rate will eventually get better. 

Stop analyzing everything and like my former employer says "just do it"

Cool, thanks for the advice. Just planning and preparing for what I need to do to get 6 and work backwards from there. Will be jumping all in head first as soon as I get my marketing materials back.

I understand. I would just follow the formula on the video and go from there. 

You could beat it to a pulp, analyze how efficient they are, get it done yourself, or trust them. You only have three months... So my perspective is to figure out what actions done will actually move you one notch forward. Then scratch the rest.

For instance. If I were in your shoes, I may decide that all this time spent analyzing these companies is better spent running my own campaign along side the one or two companies that I simply pulled the trigger with. Ready, fire, aim. So stop aiming for a moment and start pulling triggers.

You have your timeline set. Month one, spend all your time testing all your methods. Going into month two tweak the ones that worked and scale them. ;). Get rid of the ones that didn't.



P.S. I would like to know how this goes. Can you keep me up to date!? I would be happy to help keep you on track if you need the support. DM me.

Thanks Justin for the advice and accountability offer. Could definitely use help with staying on track.

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