Hello to all, before im taking that leap into direct mailing id like to know what barriers, what are the battles in this war.
My research tells me that letters get better respond rate than postcards and yellow letters getting better respond rate than white letters. my #1 question is - why yellow etter work better than white?
#2 question is - what is the challenge here? to get the person to open the letter? or most prospects opening most letters and the challenge is to catch their attention ?
#3 does the colors(font, envelope) play a rule?
#4 is there any source of statistics i can go to see how numbers are for that business?
#5 how much should i pay for one letter? letter,envelope,stamp,the lead itself all the package
#6 is there any more questions i should have ask and i didnt?
thank you :)
@michael q hey man big fan :)
I've read many theories on why that is, but does understanding the why really matter? You still have to do split testing for *your particular market*.
2) Not only to open the letter, but a clear call to action
3) Needs to be tested in your market, and switched up between mailings for maximum response rate
4) Plenty of BP posts about this
5) Check in the BP marketplace. Typically direct mail includes the letter envelope and stamp and leads are separate. I know you can get postcards for as low as 40c, letters 50c with postage. Leads I see typically 10-20c per lead, depending on list size.
6) Yes, there's a checklist of things you should prepare before starting a direct mail campaign:
If you want a game plan, let me know. In the meantime here are some questions to ask yourself. If you can answer Yes to all these questions, then you should start. If not, you should do more preparation to increase your odds of success.
1) Do you have enough money saved up for a sustained campaign of at least 200 addresses and can mail them at least once every 3-4 weeks, for at least 6 mailings?
2) Do you have the system built in place for your funnel: ready to answer that number without letting it go to voicemail, have a website landing page to capture the lead if you include a link in your DM.
3) Do you want to maximize your response rate? Get a area code that is familiar to the people you're mailing to if you want to increase their comfort
4) Are you familiar with the questions to ask a seller to see if they are distressed or not?
5) Do you have buyers ready in that area for when you close a deal?
6) Do you have someone in person that that isn't just boots on the ground, but understands rehab costs so they can get a proper rehab estimate so you know whether it's a deal or not?
7) Do you have access to MLS or comps to know the ARV of the property you're buying?
8) Do you have the contracts in place for them to sign when you close the deal?
9) Do you have a title company or escrow lawyer (state dependent) to help finalize the paperwork?
Those are just a couple of things to get ready prior to starting your campaign. I'd highly recommend getting a real estate license as well.
Last response was great but had to chime in...a lot of people disagree with the getting RE license. A lot of folk do not want a realtor or trust a realtor. Plus You have to disclose it and you have some ethics lines that are gray....not advocating cheating anyone but you may put yourself into some sort if fiduciary role if you do not disclose your intent properly...or somesuch. Just presenting an alternate opinion...worth price charged.
Thank you for the comments, I think I'm going to start out :)
About real estate license yes/no - to avoid the fiduciary situation - if i understood right, with my experience with wholesaler they all make you sign a contract saying you are not being represented by them.
If you do double closing(which that's my plan) the only thing you need to disclose is that the buyer(me) is licensed(doing me test next week wish me luck) . I'm getting it purely for the knowledge and mls access . People don't like to work with realtors cause they give a certain "vibe" , lol , I'm most definitely don't give that vibe
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing