My Direct Mail Campaign Results Have Been Atrocious

My Direct Mail Campaign Results Have Been Atrocious

Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes

Hey There BPers,

Myself and my business partner have been spending a significant amount of time on our direct mail campaign and so far, our results have been subpar to say the least. We have sent out a total of 395 letters and received a whopping 5 responses. 1 was a prank call. 2 were of the "please remove me from your list" variety. Our one success was getting an appointment with a seller, so in reality we have had 1 good response out of 395 total letters. I'm hoping to get some insights and ideas/critiques for increasing our response rate. The details of our campaigns are below.

We have slowly been gathering addresses so our list is split up, one campaign is 149 people and the other is 246 people. We have sent the different groups different pieces to try and test what will get the best response.

The first group received a standard yellow letter stuffed inside of a handwritten (in blue sharpie) 6x9" manilla envelope (link). I also used some muscle car stamps instead of the regular American flag ones to hopefully make it seem more "friendly". Our response rate was 4 of 149. Here is a picture of the finished letter:

The second group of 246 received a different mailer altogether. We used an A6 invitation-style envelope that was handwritten in black ink. Instead of a yellow letter, we sent our message on standard white copy paper. This letter was placed in the mail on 10/19 and we've only received one phone call and one FB like from our efforts. Here is the copy:

"

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Dev HornPro Member
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
12y

Your list there is a good "core" list of houses for you guys to keep an eye on, but your list size is WAY to small to generate a meaningful flow of leads.

Buy a list of at least 1,000 ABSENTEE OWNERS and mail them postcards every month for AT LEAST 6 months.

See this reply in the discussion

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  • Swarthmore, PA · Member since 2017 · 49 posts · 12 votes
    9y

    Is nobody investing in mega sites that rank on Google 20,000+ pages each specific to small cities? Mailing might be it but just curious as that is my bread and butter. I added a little video about it at Local9marketing.com

  • Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    As many have stated previously, the riches are in the niches. Find your niche list, and be the BEST at mailing it. Mail it until the house sells either by you or someone, or the home owner tells you to remove them from your list. Home owners with CLOSED Building Code Violations and landlords who have dealt with Evictions are usually good lists to hit !

  • Investor · Alameda, CA · Member since 2012 · 47 posts · 10 votes
    9y

    @Alex Capozzolo What do you mean by Closed building code violations? As in resolved? Can you share how do you filter the violations or do you mail all of them?

  • Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    @Olga Levin It's not something I have personally tried (yet). However, I have heard of a few people having success with these lists. Haven't figured out how to sort the type of building code violations yet, but will keep you updated! I think the thought process behind it is that if you can find homes with multiple closed building code violations over an extended period of times (a few years) they may be motivated at this point to want to sell their home

  • Flipper · Los Angeles, CA · Member since 2017 · 3 posts · 1 vote
    9y

    Direct Mail is Dead. With the internet, you can create opt-in landing pages with eBooks and other free tools for your clients in exchange for an email address. This allows you to follow up via email to stay top of mind to your prospect while also providing them with valuable info. 

    It's also free, but we've had a lot of success with running Facebook Ads for our clients and generating leads on demand.

    To create these landing pages we use lead pages 

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    9y

    I disagree @Garret Williams. For off market deals like probates, that is the only way to reach them.  Calling someone that has just lost their mom, dad or other person that is close to them it just not appropriate.  They respond to your targeted, ongoing letters when they are ready to move on with the estate.  

    Do I use lead generation websites? Sure. But I don't get my leads from off market deals from any website.  That hasn't changed on almost 20 years.

  • Investor · Flint, MI · Member since 2015 · 148 posts · 58 votes
    9y

    Brandon,

    IN short you have not mastered the direct mail campaign. It starts with your message.
    Secondly, its better to send out the same message at least 5 times to 100 people rather
    than send out to 500 people one time. 

    If you would like more insight and training reach back to me
    Jim Sakalis

  • Investor · Flint, MI · Member since 2015 · 148 posts · 58 votes
    9y

    Brandon,

    IN short you have not mastered the direct mail campaign. It starts with your message.
    Secondly, its better to send out the same message at least 5 times to 100 people rather
    than send out to 500 people one time. 

    If you would like more insight and training reach back to me
    Jim Sakalis

  • Investor · Arlington, TX · Member since 2014 · 114 posts · 92 votes
    9y

    Holy guacamole!!! This thread makes me feel like I just hit the jackpot!

    @Michael Quarles "call me at 555-1212 I have a check made out to you for this address... Wad the paper up, flatten back out and mail it...."  Damn! Now that's aggressive marketing! You savvy savage, you!

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    9y

    For all of you out there that think direct mail is dead - well, all of US are really happy.  Less competition from a proven lead source off off  market deals. FYI - @Michael Quarles company does a great job.

  • Springfield Gardens, NY · Member since 2017 · 258 posts · 63 votes
    9y

    @Jerry Puckett  - Hi Jerry, I love this post.  I am totally new to real estate and have been driving for dollars and making a list of vacant/distressed properties to mail.  Getting ready to do my first direct mail, you mention you send 4 to 5 letters then start again from 1.  My question is did you use a company to make the letter progression, or did you make up the letters yourself?  Any help is greatly appreciated.

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    9y

    @Isaac El 

    This post and most of my replies to it are several years old now. Since the last time I posted here, I've sent more than a million pieces of mail to more than 90 different markets across the U.S. and my perspective has changed a bit.

    I now use a series of 6 letters in most cases with most lists (excluding time sensitive lists), and yes, I write all the copy myself. Not fond of using templates that many others have access to. That said....this is NOT brain surgery. There is no secret sauce....no magic bullet. 

    Put yourself in the Seller's shoes and speak to them the way you'd like to be spoken to. Every letter should be a new iteration of the benefits of working with you + your contact information + a strong call to action. 

    If you do not have a unique selling proposition, if the only thing you can do to "help" is buying the house, avoid mentioning whatever particular distress you are targeting. For instance, if targeting bankruptcy and your only solution is to buy, DO NOT MENTION BANKRUPTCY. Don't even say "I help people in similar circumstances all the time". You will make them paranoid and scare them off.

    If on the other hand you can help fix their credit or offer other solutions, then PERHAPS it would be meaningful to refer to the circumstance. Otherwise,.....just ask if they want to sell.

    Be persistent and consistent with that, and you'll do fine.

  • Springfield Gardens, NY · Member since 2017 · 258 posts · 63 votes
    9y

    @Jerry Puckett Hi Jerry, thanks a lot, and I was literally thinking to do "I saw your house is in bad shape or foreclosure, here is my number if you want to sell call me" but that seems very weak.

    I saw some other sample letters like "I saw your house and I am interested in buying you, I will pay all cash, buy it as is so you don't need to do any repairs, and I am not an agent or broker so you don't have to pay any commissions, if your interested in selling or wondering what your house is worth, call me I can help, Sincerely, Isaac 555-1212)"

    or would you say that is too long?

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    9y

    @Isaac El,

    No, it's not too long, but a few things I would caution you about..

    Your call to action is split, and therefore weak "If you want to this or that" (Also "Call me to discuss", which I have seen frequently, not particularly strong). Stronger would be "If you've thought of selling for any reason call me today at 555-1212".  You need to tell them specifically what you want for them to do.

    I would highly recommend staying away from offering anything that could be construed as an appraisal. "(if you're) wondering what your house is worth" It's asking for an argument. On the one hand I'm a proponent of the concept that a call for any reason is a good thing, but on the other, that line is almost inevitably going to set the stage for a conversation filled with expectations that you will fail to meet, and may have a hard time moving past.

    The only number I ever give is what the house is worth TO ME. This should carry through to your appointment with the seller, negotiations, and offers also. 

    Hope that helps.

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    9y

    @Mike feathers, sounds like Android rape....total spam.  Also sounds off topic and a bit like a solicitation. I would suggest starting a new thread to avoid confusion as this has nothing to do with direct mail.

  • Springfield Gardens, NY · Member since 2017 · 258 posts · 63 votes
    9y

    @Leo Goykhman - can you give any examples?  I am new to real estate and this thread has been great.

    When creating a marketing piece stick to these couple of points and you should see a pretty decent increase in the rate of response.

    1) Write a good headline (write 10 before picking one!)

    2) Use benefit driven bullet points (people want to know "Whats in it for me?)

    3) Give them a REASON to want to communicate with you. (Create a USP/unique selling proposition)

    4)ALWAYS, ALWAYS, ALWAYS, have a clear "Call To Action" Meaning be very clear on what specifically you want your reader to do next (I.E. visit your site ....or call a free 24 hour recorded message etc...you get the point)

    Essentially you want them to know that you are a smart business person who is able to add value to their lives.

    If you follow this very basic outline, you should see an increase in your response rate.

    Hope this helps!

    -LG

  • Springfield Gardens, NY · Member since 2017 · 258 posts · 63 votes
    8y

    @Jerry Puckett  Hi Jerry, you mention 

    The only number I ever give is what the house is worth TO ME. This should carry through to your appointment with the seller, negotiations, and offers also. 

    I have read this entire post - and been taking notes, getting my list and going to start my DM campaign.  I agree with you offering the price its worth to you, but what are some strategies of doing that when your offering somebody an offer way lower, do you get a lot of rejection?

  • Philadelphia, PA · Member since 2017 · 14 posts · 6 votes
    8y

    Hi, I'm new to real estate and am interested in purchasing a list from list source in order to begin wholesaling. My husband and I would like to get into real estate and thought wholesaling may be the way to do so. We started our marketing efforts in June of this year and have yet to get a deal, or anything close. I wish I had seen this thread when we first began, as we may be closer to a deal and perhaps wouldn't have wasted some money. This thread has been a wealth of knowledge in helping me establish and refine my list for our next direct mail marketing campaign. 

    Question for @Dev Horn: I watched your helpful YouTube video on How to Use Listsource.com to build an AOL. Can you please explain why you filter on "Total Assessed Value" vs. "Current Home Value?" Also, why do you select houses below the bell curve (i.e. less than the median home value)?

    Finally for anyone who may know, is there a way to exclude a zip code using filters in Listsource.com? I purchased a list about 6 months ago for one specific zip code and do not want my new list to potentially overlap with any old leads. To take this a step further, as you purchase future lists from Listsource.com with the same filters/ criteria, is there a way to avoid re-purchasing leads that you've purchased in prior lists?

    Thank you all in advance for your help and insight!

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    8y

    Bilon - don't get discouraged.  You need to stay in the game long term.  81% of your deals with come at or beyond your 5th mailing.  

    What I do is put in my state, the counties I want, then I get a list of zip codes.  You can remove any of those you don't want.  If you use a mailing company (and get your list through them ) they can do that for you.  Here's the thing; lists are pretty cheap to get.  I always updated my list every 6 months.  

  • Philadelphia, PA · Member since 2017 · 14 posts · 6 votes
    8y

    Thank you @Sharon Vornholt for the help and quick response! I'll look to set up my list this way.

    If I may ask another question - considering I don't think we purchased a good list the first time around with all of the appropriate filters (such as equity, home value, etc.), do you still think it's worth the investment to keep mailing to this list (costs about $300/ month for postcards)? We have about 580 names, so I would imagine that there may be a deal somewhere in there even if we didn't increase the odds by filtering correctly when originally buying the list.

    I'm looking into hiring a VA to scrub my list every 6 months as you suggested to remove homes that have been sold. Thanks again for your generosity with sharing your knowledge.

  • Professional · Redondo Beach, CA · Member since 2017 · 52 posts · 19 votes
    8y

    Hello @Ebony J.!  You can build your own lists to fit exactly the criteria your looking for through Data Tree or RealQuestPro (I personally prefer Data Tree).  Really honing in on the the precise area and desired criteria.  The data is extremely fresh and direct from county assessors -- with the added bonus that every download has the same excel data layout, so it makes mail merges really fast and easy.  Just food for thought!

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    8y

    @Ebony J. - how much did you pay for your list?  I personally would get another list and just start fresh.

  • Philadelphia, PA · Member since 2017 · 14 posts · 6 votes
    8y

    @Gen SteMarie thanks for the tip, I'll check both out as I look to build the next list.

    @Sharon Vornholt $110 for ~650 names. Wasn't that big of an investment, but we've now spent over $600 mailing to those leads. We started with yellow letters, followed by postcards, and just initiated the second postcard mailing yesterday which will run through the end of the year due to skipping a few weeks given the holidays. I'm glad I asked the question though so we don't waste any more money mailing to that list. 

    I appreciate the advice and will just start mailing to a new list now.

  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    8y
    Originally posted by @Ebony J.:

    Hi, I'm new to real estate and am interested in purchasing a list from list source in order to begin wholesaling. My husband and I would like to get into real estate and thought wholesaling may be the way to do so. We started our marketing efforts in June of this year and have yet to get a deal, or anything close. I wish I had seen this thread when we first began, as we may be closer to a deal and perhaps wouldn't have wasted some money. This thread has been a wealth of knowledge in helping me establish and refine my list for our next direct mail marketing campaign. 

    Question for @Dev Horn: I watched your helpful YouTube video on How to Use Listsource.com to build an AOL. Can you please explain why you filter on "Total Assessed Value" vs. "Current Home Value?" Also, why do you select houses below the bell curve (i.e. less than the median home value)?

    Finally for anyone who may know, is there a way to exclude a zip code using filters in Listsource.com? I purchased a list about 6 months ago for one specific zip code and do not want my new list to potentially overlap with any old leads. To take this a step further, as you purchase future lists from Listsource.com with the same filters/ criteria, is there a way to avoid re-purchasing leads that you've purchased in prior lists?

    Thank you all in advance for your help and insight!

     In Listsource, Current Home Value may be treated as a premium filter, meaning they may charge you extra to use it.  Total Assessed Value is straight from the county and is a "free" filter on Listsource.  That's the main reason we've always used it...

  • Philadelphia, PA · Member since 2017 · 14 posts · 6 votes
    8y

    @Dev Horn I see, thank you for clarifying.

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