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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  • Kevin PolitePro Member
    Investor · Decatur Atlanta, GA · Member since 2011 · 612 posts · 232 votes
    11y

    absentee owners are the next big source of homes. Blackstone and the rest of the big guys didnt buy every available home, though in some areas it appears that way. There were plenty small investors with some cash that purchased properties 

    1) overspent on repairs 2) decided the rental business is not the way to make some fast money 3) tried unsuccessfully to flip and became landlords.

    I call mine beginners luck, but I purchased two homes from someone just like this this year and I sent out approximately 100 postcards.  i'm sure this has mentioned somewhere in the thread, but I see this happening a lot in Atlanta and IMHO elsewhere

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    11y

    Jonathan -

    You are not looking for "any Joe Schmo"; you are looking for that one really motivated seller in a distressed situation. They are two very different animals.  Folks that have a house for a retail buyer won't be looking for "Joe Investor".

    Sharon

  • Investor · Bennington, NE · Member since 2014 · 28 posts · 5 votes
    11y

    so is there a DM postcard site that I can upload a list to/ or add to that then starts the lead on an auto 5-6 drip campaign?

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    11y

    @Jeremy Prunty - yellowletters.com.  You can upload your list and they will mail your PC's.

  • Real Estate Coach · New Zealand / USA · Member since 2014 · 296 posts · 82 votes
    11y

    Is ListSource the only place to buy lists? Anyone have experience with other providers?

  • Real Estate Investor · Staunton, VA · Member since 2015 · 13 posts · 2 votes
    11y
    This is the best marketing post on bigger pockets.
  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    11y

    There are a number of list sources.  You can Google them.

    Sharon

  • Phoenix, AZ · Member since 2015 · 43 posts · 14 votes
    11y

    Hi,

    I do not recommend direct mail any longer to my clients, but one unique method that has worked for them in the past is when we would follow the obituaries.  Once we located a person that had passed away, we would send a simple postcard that said if you ever consider selling, please give us a call.  This was not seen as hearse chasing but instead seen as good timing by the family. My clients picked up more than one good, wholesale deal this way.

  • Mobile, AL · Member since 2015 · 3 posts · 2 votes
    11y
    My approach is a little different. You have to remember. These people do not know you. So be professional but Short all at the same time. I like to type my letters. It looks better from a person who received the letter. Also. List your company. And last. Place a business card in the envelope. My letter sounds like this. Dear __________, Hi my name is Anthony Jackson and my Company AMC-INVESTMENTS LLC buy & sell homes under $50K. I would love the chance to speak with you about your property at _____________ #AMCINVESTMENTS
  • Real Estate Coach · New Zealand / USA · Member since 2014 · 296 posts · 82 votes
    11y

    @Sharon Vornholt - care to share some keywords/search terms for finding the various lists?

    Or maybe that's top secret information (lol) ???

  • Wholesaler · Nashville, TN · Member since 2014 · 407 posts · 180 votes
    11y

    @Brandon Foken

    Hey Brandon, would love to hear updates on your campaign.

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    11y

    Campaigns are still trucking along. I've shifted from doing blasts of YLs/postcards/etc. to more targeted, "nicer" marketing materials to hopefully stand out in my competitive market. Response rates still generally suck - averaging about 1% - but the quality of my inbound calls has increased. Now that I'm mailing more folks, I can get a way with that response rate, but I'm still working hard to improve it. Did you have any specific questions you wanted addressed, @Micah Copeland??

  • Investor · Chandler, AZ · Member since 2014 · 303 posts · 101 votes
    11y

    @Brandon Foken

     What kind of marketing do you do now?

  • Wholesaler · Nashville, TN · Member since 2014 · 407 posts · 180 votes
    11y

    @Brandon Foken

    Thanks for asking but no specific questions. I am just always curious on what kind of results everyone else is brining in off there campaigns.

  • Specialist · St Clair Shores, MI · Member since 2010 · 39 posts · 22 votes
    11y

    Three things you can do today to improve them...

    Segment your absentees...these are the most mailed lists of any (try mailing non homestead properties that may be listed as owner occupied) -I have bought a few last year from this. 

    Add Probates to your mailing campaign

    Build a driving for dollars list and leave a note on the door, track them down, mail a letter to taxpayer address and call them if you can find a number.

    In todays "up" market, marketing responses typically decrease since sellers are getting pounded by everyone, they can just put a FSBO sign out or CL ad and get callers.

    I have seen yellow letters mentioned in this posting many times. Id advise you to use anything but. If everyone is sending it, then they are just blending in.

  • Real Estate Investor · Odessa, FL · Member since 2015 · 66 posts · 15 votes
    11y

    I agree with the statements above. A response rate in the DM world of .025% to 1% is considered good. I would stay with post cards as there is no need for your prospect to open the mail piece to view the message. Also, it takes multiple touches (mailings) over time to generate leads. How many mail pieces came back as undelivered? If it seems like too many are coming back as returned mail, your list may be dated. Best of luck, my mailing should go out next month!

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    See rule of seven in REI marketing

    http://youtu.be/JWPsrSGn33g

    @dev 

    @Dev Hornundefined

  • Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    11y

    @Brian Gibbons, thanks for the video.  Fantastic info!

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    Everyone in Wholesaling should see that video.

    Thanks, @Frankie Woods

    Brian

  • Investor · Tualatin, OR · Member since 2015 · 4 posts · 3 votes
    11y

    I own 9 rentals and I get these letters daily if you want to get attention forget all the nonsense.  It all boils down  to $$$$$ in the sellers eye.

  • Specialist · Jacksonville Beach, FL · Member since 2008 · 39 posts · 41 votes
    11y
  • Investor · San Diego, CA · Member since 2010 · 30 posts · 5 votes
    11y

    @Brandon Foken

     Can you share how your refining your lists to make them more targeted?  I am just getting started marketing again in So Cal and want more to test more targeted or combined motivators.  What have you found successful?

  • Investor · Fort Lauderdale, FL · Member since 2015 · 172 posts · 30 votes
    11y

    @Joel Owens

    That was my thoughts exactly when I read through the letter. If I am a homeowner getting ready to loose my home and/or absentee owner, I do not want to read a very long letter from an investor. Just make it short, sweet and to the point with your call to action.

  • Investor · Bowie, MD · Member since 2015 · 53 posts · 16 votes
    11y

    What are some reliable websites that you all use to automate this direct mail process ?

  • Investor · ID · Member since 2014 · 35 posts · 12 votes
    11y

    @Brandon Foken What is your criteria when you are running PPC ads? Are you doing it on FB and what demographics are appearing most commonly?

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