OMG - Direct Mail Really works (in the right market)

OMG - Direct Mail Really works (in the right market)

Bill S.Pro Member
Moderator
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes

So hopefully this isn't too long. I haven't actually closed any deals yet from it so it's too soon to put in the success section but here goes...

I have been direct mail marketing to various parts of the Denver metro market for the past 6 months. I've gotten about 0.5-1% response from my direct mail and I've hit the first area 5 times now. About half of my calls are "take me off your list" in some form or another. From what I read here that is absolutely atrocious response rate. So out of about 10,000 letters I have done two deals (not bad) and my marketing has paid for itself but I'm not making a living at it. I'm crunching the numbers and figure I need to do about 10K mailings per month to meet my income goals. That is a ton of work so I'm trying to figure out how to ramp up my results. I'm thinking, my letter needs work and maybe I should do post cards since they are cheaper (but they have a lower response rate).  I'm reading here and listening to pod casts and I can't figure out what I'm doing wrong. I've heard several times "Denver's a tough market". Finally I decided that this month I would divert some of my marketing dollars to another market. 

Wow, what a difference.  I mailed about 800 letters. So far I've had about 30 calls and only one was "Take me off your list." I have half a dozen solid leads from obvious motivated sellers that passed phone screening. I have one offer verbally accepted with the contract sent via email and am going to make two more offers today. This is amazing.

Direct mail really works. Thanks to all for the tips shared here that have helped move me onward and upward. Thanks to @Joshua D.  for the site to learn on, @Michael Quarles  and @Dev Horn for sharing your tips here and on the pod casts. Looking forward to posting in the RE success stories here in near future.

3Reply
41 views

Most Popular Reply

Dev HornPro Member
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
11y

Man I love to hear this kind of story, Bill!  Wishing you even more success in 2015.  Make sure you hit it hard in January; people often set new year goals to deal with financial issues, and we often see more motivated sellers contacting us in January than any other month of the year.

"Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish." ~ John Quincy Adams

See this reply in the discussion

10 Replies

Jump to latestLatest
  • Chris MusicPro Member
    Investor · Walnut Creek, CA · Member since 2013 · 219 posts · 66 votes
    11y

    Bill, thanks for sharing your story, always good to hear a direct mail sucess story! It's one of those things that takes time and money but if you get it right, it is well worth it. Good luck closing those deals!

  • Jeremy BakerPro Member
    Real Estate Investor · Aurora, CO · Member since 2014 · 240 posts · 109 votes
    11y

    That's awesome @Bill S. !  Really looking forward to reading your success stories.  

  • Investor · Norfolk, VA · Member since 2014 · 164 posts · 51 votes
    11y

    Congratulations @Bill S. , those are great results. I see it pays off to pay attention to your numbers and not being afraid to test other markets if need be.

  • Wholesaler · Houston, TX · Member since 2013 · 56 posts · 3 votes
    11y

    @Bill S.  who are your primary leads? Absentee owners, probates, pre-foreclosures, etc?

  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    11y
    Originally posted by @Bill S.:

    So hopefully this isn't too long. I haven't actually closed any deals yet from it so it's too soon to put in the success section but here goes...

    I have been direct mail marketing to various parts of the Denver metro market for the past 6 months. I've gotten about 0.5-1% response from my direct mail and I've hit the first area 5 times now. About half of my calls are "take me off your list" in some form or another. From what I read here that is absolutely atrocious response rate. So out of about 10,000 letters I have done two deals (not bad) and my marketing has paid for itself but I'm not making a living at it. I'm crunching the numbers and figure I need to do about 10K mailings per month to meet my income goals. That is a ton of work so I'm trying to figure out how to ramp up my results. I'm thinking, my letter needs work and maybe I should do post cards since they are cheaper (but they have a lower response rate).  I'm reading here and listening to pod casts and I can't figure out what I'm doing wrong. I've heard several times "Denver's a tough market". Finally I decided that this month I would divert some of my marketing dollars to another market. 

    Wow, what a difference.  I mailed about 800 letters. So far I've had about 30 calls and only one was "Take me off your list." I have half a dozen solid leads from obvious motivated sellers that passed phone screening. I have one offer verbally accepted with the contract sent via email and am going to make two more offers today. This is amazing.

    Direct mail really works. Thanks to all for the tips shared here that have helped move me onward and upward. Thanks to @Joshua D.  for the site to learn on, @Michael Quarles  and @Dev Horn for sharing your tips here and on the pod casts. Looking forward to posting in the RE success stories here in near future.

    Good work Bill!

  • Bill S.Pro Member
    Moderator
    OP
    Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
    11y

    @Darien Gipson - I mail to a number of lists but this one was out of state owners. Listen to @Michael Quarles pod cast and check out his website. He breaks down the lists in terms of greatest chance of a deal with fewest number on list.

    In the new market I have not been able to find foreclosures nor probate lists. 

    My experience so far is that the highly targeted lists don't produce enough volume in my area to make a living from them.

  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    11y

    Man I love to hear this kind of story, Bill!  Wishing you even more success in 2015.  Make sure you hit it hard in January; people often set new year goals to deal with financial issues, and we often see more motivated sellers contacting us in January than any other month of the year.

    "Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish." ~ John Quincy Adams

  • Flipper/Rehabber · Golden, CO · Member since 2013 · 590 posts · 319 votes
    11y

    Nice! If you don't mind me asking, which area have you started to target?

  • Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
    11y

    Awesome, that's great to hear Bill. I can't wait to hear the success stories.

    What do you think are the main differences as far as the areas and the targeted recipients? Did you only mail to out of state owners?

  • Denver, CO · Member since 2013 · 6 posts · 0 votes
    11y

    Great job Bill!  Glad you are finally having some success in Denver (or somewhere else).

Join the conversationCreate a free account to reply, vote on answers and follow this thread.