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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  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    12y
    Originally posted by Anthony P:
    @Dev Horn When you said: "you need to throw more prospects in the top and make sure the filters are right so the good leads come thru the funnel.

    Can you please explain the filters you are mentioning

    Thanks Devon


    Your filters are generally:

    - Location (zip code, city, county)

    - Value Range (e.g., $75K to $200K houses)

    - Equity % (use 40%+, usually use 50% as a minimum)

    - Property type (SFR - single family residence)

    - Owner Type (Absentee - In State, Abs - Out of State, etc.)

    I start there - see how many I get - and then use additional filters to narrow it down to the size list I want:

    - Length of Residence (Maybe 7+ yrs)

    - Age of owner (lot of people like to market to 65+ yrs old)

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y

    I think we are only an @Aaron Mazzrillo away from a real direct mail party.

    Thanks for chiming in Michael. I just placed an order for your direct mail samples last night. The zip letters look pretty awesome.

    Based upon the advice from everyone, we will be augmenting our driving for dollars mailing list with a Listsource list with tight criteria. Hoping to get 2,000 pieces out in the month of November. Can't thank the community enough!

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y
    Originally posted by Jerry Puckett:
    I use a series of 4 or 5 letters that have proven very effective. Each letter builds on the one before, but they're still short, sweet and to the point. In almost every case, the campaign starts out with a pretty high response rate

    As the campaign continues, the call volume drops and the call quality goes up. I have extended that cycle out to 6 weeks before, and the trend continues, but usually no more than 5 before I refresh my list and start over.

    It is so freakin hard in the beginning because it feels like you're just throwing your money away. But when you come through to the other side, and learn to trust your marketing and know that the phone will ring again....well, then you'll be coming back here and telling every one that you have to be persistent, consistent, and stick with it a minimum of six months.

    This is great stuff, @Jerry Puckett thanks for sharing. When you say each letter builds on the one before, can you give me an example? Are you more referencing, "Hey, I sent you a letter a few weeks ago..." or something a little more sophisticated than that?

    I'm a little confused on the 2nd paragraph. What do you mean by extending the cycle out to 6 weeks? Does this mean you mail every 6 weeks, or mail every week for 6 weeks or something completely different? Just trying to make sure I understand your experienced advice. Finally, thanks for the inspiration, those are exactly the words I needed to hear.

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    12y
    Originally posted by Brandon Foken:

    I'm a little confused on the 2nd paragraph. What do you mean by extending the cycle out to 6 weeks?

    Hey @Brandon Foken ,

    Thanks for your kind words. No nothing too much more sophisticated. "I sent you a letter a few weeks back, is there something keeping you from hearing what I have to offer?" Then reiterate benefits. Starting in the third letter, I ask for referrals and offer to pay for them.

    I actually meant 6 months rather than weeks, sorry for the confusion. So a cycle of 6 unique letters, one per month, before starting over. I find though that going past 4 or 5 months with the same list that my RTS count significantly escalates indicating a stale list.

    As for the inspiration, you're welcome to it. Just like to pay it forward.

  • Real Estate Investor · Raleigh, NC · Member since 2012 · 427 posts · 297 votes
    12y

    This thread is great, I don't really have anything to add but I sure learned a lot reading it. Great stuff everyone!

  • Los Angeles, CA · Member since 2013 · 44 posts · 15 votes
    12y

    @Sharon Vornholt

    Thanks for your insight. I see what you mean, however, its hard for me to wrap my head around the fact that someone would accept an offer that's that far off from what they'd get putting it on the open market. But I do trust what you are saying and I will take your advice. I guess the main point here is that motivation is the main driver of getting a good deal.

  • Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    12y
    Originally posted by Jonathan La Rosa:
    @Sharon Vornholt

    its hard for me to wrap my head around the fact that someone would accept an offer that's that far off from what they'd get putting it on the open market.

    Jonathan, until you do the seller won't.

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    12y

    @Account Closed

    @Account Closed

    @Account Closed

    @Account Closed

    @Account Closed

    @Account Closed

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y

    Alright, now that everyone has the right mindset, let's get this thread back on track. I'm working on getting a good, quality Listsource list put together. Right now I have about 4,500 absentee owners that have 10+ years of ownership and 50%+ equity. There are more criteria than that, but those are the major ones.

    Our plan is to mail to about 2,000 of those this month and that is where my question comes in. We are going to be using the zip letters from yellowletters.com. Due to some pre-existing vacation plans, I'm questioning when the mailers should hit our prospects. Do you think that having letters hit during the week of Nov. 18th is too close to Thanksgiving for maximum effectiveness? Or should the letters be received at the very beginning of December? I'm probably overthinking this, but I'm wanting to make sure my first, large batch of mail hits during an optimum time, not one where people are going to be too focused on the holidays to act.

  • Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    12y

    @Brandon Foken

    The great thing is that they are absentee owners. I would drop 1000 on the 11th and 1000 on the 27th. And have you taken avantage of the special pricing at the moment?

  • Los Angeles, CA · Member since 2013 · 44 posts · 15 votes
    12y

    @Sharon Vornholt

    Thanks for sharing your expert knowledge.

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    12y

    You're very welcome.

    Sharon

  • Specialist · Houston, TX · Member since 2012 · 579 posts · 301 votes
    12y

    Great discussion! It's what makes BP so great.

    One of the long-time investors at my local REIA told I should place my photo on my postcard mailings - especially to pre-foreclosure lists to help personalize it. Has anyone use that technique?

  • Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
    12y

    Very good thread here...

    I like the yellow letter, but think the second letter is a mess (no offense). The letter seems to be explaining how the seller can make money. Sellers who are interested in how much money they make are not your target audience. Motivated sellers are those who have a problem that you can solve. You need to explain how they can solve a problem (getting rid of a house they do not want, can't afford to take care of, is in bad condition, is causing them stress, is a financial liability, may lead to alcoholism, divorce, etc.).

    Your sellers do not need to see your numbers. You will never convince the ones that are concerned about money that you are giving them a fair deal and the other ones don't care. It is a distraction.

    Speaking of distractions, you have 3 Call-to-Actions in the letter. (Call you to sell, call you with referrals, check out your website). Get rid of 2. Your message needs to be simple and direct. Tell them exactly what to do. The waded-up example that @Dev Horn used does just that.

    You mention the houses are dilapidated. Enroll the sellers in the opening paragraph and give them a reason to call.

    Do the repairs needed at (address) cause you stress just to think about? My name is Brandon and I can buy your house as-is. In fact, I am looking to buy 3 homes in your neighborhood in the next month. Please call me at (phone number) to see if your home meets our criteria.

    When you do business with me....(list of benefits)

    As always, there is absolutely no obligation to sell your house to us - just pick up the phone and give me a call at (phone number) today.

    Salutation..

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y

    @Erik Hitzelberger thank you! No offense taken at all. That was my first attempt at any sort of lengthy sales letter and I'm not too surprised it wasn't very good. I used to do IT sales and for whatever reason, crafting those emails were a lot easier than this sales letter (maybe I'm just out of practice).

    Question: I've seen multiple people recommend putting your URL in the letter so that they have a different way to reach you as some people are too shy (or whatever reason) to pick up the phone and call you. Do you use your URL in your mail or only your phone number? Thanks again for the input!

  • Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    12y

    @Brandon Foken

    On a yellow letter I wouldn't include a URL. However on ZipsLetters and Postcards absolutely...

    My Zip that has multiple ways for the prospect to reach me works very well.

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y

    I just wanted to jump in quickly and re-thank everyone for their help and answers and to also provide a quick update. I went ahead and purchased a lead list of absentee owners that totaled just over 4,400 leads. Combined with my 500ish leads I gathered from driving for dollars, I have just shy of 5,000 total leads.

    I just submitted an order to yellowletters.com yesterday for zip letters and will be mailing to those leads over the next month. Roughly 1,250 per week for the next 4 weeks. I'll be taking a break over Christmas time and then re-hitting those same leads on a regular interval come 2014.

  • Inland Empire, CA · Member since 2012 · 63 posts · 12 votes
    12y

    I love this thread! Did I say, I love this thread? ;-)

    Very informative and lots of useful insights/information! Thanks for sharing your knowledge everyone!

    @Brandon Foken Good luck with your marketing! Keep us posted.

  • Inland Empire, CA · Member since 2012 · 63 posts · 12 votes
    12y

    @Brandon Foken Forgot to add, why not contact a local Title company and have them give you a Farm of Absentee Owners in your area? It's FREE - saves you money. :-)

  • Real Estate Lender · Richmond, VA · Member since 2010 · 14 posts · 0 votes
    12y

    I understand your plight. I use an online card system that I discovered and implemented the "rule of 3". People are already stressed and have a thousand things on their mind so I try a very different approach. email me and I can tell you more.

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y

    @Account Closed I've heard about calling a title company up for lead lists (from BP no less), but I didn't go that route because I haven't done a deal yet. I figured that would work better once a relationship was established instead of just asking without giving anything of value in return. Thanks for the well wishes!!

  • Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
    12y

    @Brandon Foken - I admire the way you took advice on this thread and acted on it! You certainly seem like someone who will be successful in this business. I like your plan, but I'd caution you that if you have never mailed 1250 letters in 1 week, the response can be overwhelming. I don't have time to process that many calls, but I have other obligations. If you do, that's great! If you aren't sure, consider a test of 500-600 in week 1.

  • Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    12y

    @Erik Hitzelberger

    At 1250 ZipLetters he will be fine. What is nice about the ZipLetter is that;

    1. The call volume is lower then yellow letters however a better quality. Not a lot of crazy calls.
    2. Its a great product if you want your marketing piece to present for you.
    3. Its open rate is huge. Keep in mind it looks like a notice to open.
    4. Its unique. Fresh eyes is a plus.
    5. And cost effective.
    Okay enough with the commercial.
  • Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
    12y

    @Michael Quarles I am not questioning the choice of zip letters -- especially after that list of benefits :). I simply had a bad experience when I started out. I mailed 1000 letters one week and got 50-60 calls. I was not good at screening for motivated sellers at the time and wasted a lot of time. I'm sure I missed a good deal or 2 because I had a FT job and couldn't handle the call volume. I know it can be done, just throwing out a word of caution.

    PS. I checked out the website. It does look like a good product.

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    12y

    @Erik Hitzelberger either luckily or unlucky depending on your view, but I got laid off from my job a little over a month ago. I think between myself and my business partner we will be able to handle the amount of inbound phone calls. I could definitely see that being a problem as I got 14 phone calls one week when I had a job and that started to feel pretty overwhelming. It's great advice to those who are doing this on-the-side while still working a full-time job. Finally, thanks for the kind words!

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