So I recently expanded my target markets to include Arlington, TX which is part of a metropolitan area. I typically have used direct mail to find motivated sellers. I bough an Absentee Owner list for Arlington, TX (about 3000 leads) and have made two complete passes through the list at about 8 weeks apart. My response rate has been absolutely horrible with getting maybe 3 or 4 calls per pass if even that and no deals. I figure this list must be really competitive and that the owners are just getting a lot of mailers.
It is getting about time to hit the list again which will be my third pass I and I am debating on whether I should continue mailing to this list or cut my losses and find a different target market to mail to.
2 mailings is not much - I always seem to hear 6 touches minimum from the marketing experts. I would keep mailing.
I buy in Arlington if you do pick up a wholesale deal.
A 1% - 3% response rate would be good to excellent over time. Don't expect consistent results in just a couple of mailings. That would be similar to getting one call in the first batch of 100. That would be luck.
Thank you both for your quick replies. I had a much better response rate in my other target market. Granted that market is a lot more rural and smaller ( population of about 110,000) so maybe I just was spoiled and the results from that market are not typical. I had just figured after about 5,000-6000 mailers ( both passes combined) I would have received more than 5 or 10 calls. I knew that Arlington would be a lot more competitive but expected better results than that.
I usually alternate between sending a yellow letter and than a professional letter with both costing me the same at around $0.70 per letter. I'm thinking about throwing in a third option of a basic postcard which is much cheaper at around $0.34 per mailer.
So everyone thinks I should just keep mailing then.. I have the budget to continue mailing it as my other market gets me enough deals to pay for the cost of this new Arlington market out of my profit, but I do need a deal in the next few mailings at least to justify continuing to market to it in my opinion.
Anyway thanks again for your help and quick response this morning
BTW Andy feel free to go to certain "places" to be added to my Buyers List.
I would double up on the postcards. They are easier to handle and store for future reference by the recipient.
2 mailings is not enough passes for sure. Lots of responses come after 4+ passes with some responses coming after 12+ touches. If you 'cut your losses' you are throwing away your money because it takes time to build recognition and your mail has to arrive when there's actual motivation or no action is taken. It's like planting a flower and hoping that it'll grow in days if you're only doing 2 mailings.
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