Direct Mail Almost Killed My Business - SEO Saved It

Direct Mail Almost Killed My Business - SEO Saved It

Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes

I wanted to share my experience, frequently I'm contacted about direct mail marketing from listeners of the BP Podcast I was interviewed on in 2014. It was an honor to be interviewed, while the mindset and business organization tips offered still hold true. The marketing information is outdated and dangerous. Let me explain... 

From 2012 - 2015 I mailed 5,000 - 15,000 mail pieces per month in Southern California. Various types of letters and postcards with a good amount of success. But in 2015 I started to notice a shift, my marketing was becoming less effective as competition for off market properties grew and new wholesalers and house flippers began to try their luck at direct mail. 

Midway through 2016 I pulled the plug on all forms of direct mail and PPC marketing. I was fighting a losing battle, it took 10-15k mail pieces to get a deal and most sellers I reached were inciting bidding wars that I couldn't win. If I did get the deal, the wholesale fee would barely cover my marketing costs to get the deal. I was getting frustrated and felt embarrassed and afraid that my business model was no longer viable. 

At that point, 1/3 of my deals were coming from a website I had created in 2014. It was poorly designed but was ranking fairly well in my market. I noticed a trend that the sellers I reached via my site were much easier to deal with. To survive in my competitive market I knew I had to make big changes or I'd bleed out on the marketing costs of direct mail and PPC. 

Over the last two years I've sourced 100% of my deals from my website, which tends to rank in the top 3 spots for most keywords in my market. This change eliminated most of the stress and pressure I felt from high budget marketing. If I don't think a deal or a seller align with my goals, I can easily pass on it since my costs to reach them are negligible. In the past I'd be trying to fit round pegs in square holes to cover my marketing costs, running myself ragged on every lead to squeeze something out of it. 

I now spend under $1000 a year on design and maintenance to allow a fast, efficient, clean and safe website. This helps Google take notice and I am routinely making little tweaks to try and stay ahead of the curve. For a small company like mine, this provides me enough deals to thrive on while not stressing the typical costs and pressures of marketing in a fiercely competitive market. 

The intent of this post is shed light on the alternatives to large marketing budgets, technology is our friend and frankly I don't see many people looking in their mailbox for answers to their questions these days. They are on their phone. Direct mail might be a great way to reach sellers (especially the old ones) but the trend is shifting and it is no longer a creative form of marketing. Dealing with tech savvy sellers (of all ages) has made my life much easier and relieved a lot of stress. Feel free to ask any questions if you'd like to open a discussion on SEO, web marketing and its merits.

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Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
7y

seo is god. The problem many investors have is the lack of u understanding what seo is. If you say "I do seo" and you do not rank #1 I am sorry but SEO = picking your nose.

Seo is only useful being #1 or getting there. Period!

Then the second mistake people make is thinking that being number one is the end goal. SEO without credibility equals nothing. Credibility without SEO equals nothing unless you drive traffic to your website manually. People need to understand that SEO alone will not get you anywhere. Deals = SEO + credibility

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  • Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    7y
    Originally posted by @Tim G.:
    Originally posted by @Jerryll Noorden:
    Originally posted by @Ian Walsh:
    I think it is market dependent to commit to the shift being completed.  San Fran will likely have a more shifted market than a small city in the mid west.  Most cities I believe are in transition.  Ours is for sure.

    Originally posted by @Tim G.:
    Originally posted by @Ian Walsh:

    Really good post and paying this much attention to your marketing is spot on.  I have been wondering when the shift of money will switch from baby boomer to millennial and I think we will see the indication of it when the effective marketing methods change just like this.

    The shift is here. It just depends on if the seller is an early adapter to tech or not. I had an older seller laugh at me when I asked them if they could print or scan a contract. They were in their 60's and had a career where they used computers, of course they could. 

    The other interesting part to note, at least on my end. Is my SEO web leads seem to have different personality traits than those I found via direct mail. Traits I find easier to deal with and it allows me to handle deals more effortlessly. I can' substantiate this with any data but the trend is present and it helps me enjoy dealing with these sellers. 


    People aren't looking to their mailbox for answers to questions today, direct mail is a dying form of marketing. The future is automated call systems or the web. 

    I do not agree there.

    I used to look down on DMM, simply because I get more than I can handle from my website.

    But here is the problem. You leave a HUGE market open , low hanging fruit if you do not do DMM.

    Older folks still look to newspapers for help. They do not have fancy cell phones and have no idea what a Google is.

    I used to think.. well who cares if I miss on that 13% of the market... but that is a big mistake. A huge factor of being successful is not only doing many deals. You have to dominate kill destroy crush your competitors. "ohh you are so mean". These ka pampa crappy competitors of mine steal my designs, my copy, my everything to try to steal my market. Mercy is not in the vocabulary.

    If you leave a % open for them to feed on, they ARE trying to overtake you. You NEED to starve out your competition. The more deals you take away from them the more deals you have... and the less dels they will have.

    DMM is a must no matter how awesome your website is or how many deals you get from other places.

    Besides... simply BECAUSE "everyone" thinks DMM is a dying form of marketing, by definition is it now the hottest form of marketing (because no one does it, you would be the only one).

    You're right, there are a lot of sellers who will still respond and sell to someone who reached them via direct mail. I guess in my situation and less about looking down on direct mail and more about that I didn't enjoy direct mail and I found an alternative. I was unhappy spending money on marketing campaigns, dealing with outbound marketing, the sellers, the bidding wars, the personalities my direct mail attracted. It made me unhappy and I'm not in this business to be the best, get the most, dominate, etc.. I'm here to do deals that make money and allow me to be happy and live my life. 

    I'm a big fan of pareto's principle. When I examined my business, I felt that I could have more free time to chill and enjoy myself outside of work and focus on the 80% and let the other 20% go to someone else who was ok with the smaller margin deals that seemed to take up more time. I don't have a desire to do every deal in my market, more deals don't equate to more happiness in my world. 

    As they say... Its not the way, just a way. 

     I detest hate friggin HATE DMM. its annoying expensive inefficient takes time lots of headaches and I would guess 70% of your mailers won't even be seen or opened.

    So I never easily say "do dmm". But the fact if the matter is if just one of these mailers land you a deal... It could be worth it...

    So yeah. I agree with you there

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Ian Walsh:
    I think it is market dependent to commit to the shift being completed.  San Fran will likely have a more shifted market than a small city in the mid west.  Most cities I believe are in transition.  Ours is for sure.

    Originally posted by @Tim G.:
    Originally posted by @Ian Walsh:

    Really good post and paying this much attention to your marketing is spot on.  I have been wondering when the shift of money will switch from baby boomer to millennial and I think we will see the indication of it when the effective marketing methods change just like this.

    The shift is here. It just depends on if the seller is an early adapter to tech or not. I had an older seller laugh at me when I asked them if they could print or scan a contract. They were in their 60's and had a career where they used computers, of course they could. 

    The other interesting part to note, at least on my end. Is my SEO web leads seem to have different personality traits than those I found via direct mail. Traits I find easier to deal with and it allows me to handle deals more effortlessly. I can' substantiate this with any data but the trend is present and it helps me enjoy dealing with these sellers. 


    People aren't looking to their mailbox for answers to questions today, direct mail is a dying form of marketing. The future is automated call systems or the web. 

    or back to the old days of door hangers and door knockers.. you know marketing your farm area door to door handing out refer magnets

  • Member since 2021 · 2 posts · 1 vote
    5y

    Yes, yes! SEO is really our savior and our help.

  • Member since 2021 · 2 posts · 1 vote
    5y

    Yes, yes! SEO is really our savior and our help. SEO helped me too, but not with the newsletter. It helped me to get the site right. I wanted to make the content I created serve the user. And it worked for me. I studied SEO in depth, and now I am one. I tidied up the internal structure of the site, filled the page with keywords, worked on brand citations, and of course analyzed the competitors. This analysis can be done both manually and with the help of SEO Tools. This area was so new to me, but now I do not regret that I tried it and learned about it.

  • United States · Member since 2021 · 151 posts · 49 votes
    5y

    Direct mail is terrible, it may work for some industries and maybe even REI in some markets but I have never had a good experience with it.

  • Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    5y
    Originally posted by @Jason Mileshko:

    Direct mail is terrible, it may work for some industries and maybe even REI in some markets but I have never had a good experience with it.

    Agreed!!

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