Developer · Andover, MA · Member since 2008 · 1k+ posts · 489 votes
I'm hoping the big marketing folks will chime in and provide some stats on the DEAL rate between postcards and yellow letters. I understand that yellow letters have a higher response rate, but rarely do I hear about deal rate.
I haven't done enough variation and tracking to identify any conclusive results.
Please provide your investment strategy when you respond as this may contribute to varying results.
Fort Worth, TX · Member since 2009 · 66 posts · 25 votes
13y
I continue to mail postcards 4.25x 5.5 yellow w/ black ink. Not a lot of calls but good calls. With ten calls I'll get a deal. 2000 postcards, cost 650.00 dollars. A recent house I bought, the guy shoes up with a folder full of mailings. letters, full color postcards, over sized postcards tec. My postcard was the cheapest of the bunch. I asked...why did you call me? He said I mailed him more frequently than the other guys. same thing on a house I bought today. Keep the message simple and be yourself. Just keep mailing and you will buy houses. Always point out the benefits and try to use a little humor. I would still rather send more postcards to the same list fewer letters to a smaller list.
Fort Worth, TX · Member since 2009 · 66 posts · 25 votes
13y
I continue to mail postcards 4.25x 5.5 yellow w/ black ink. Not a lot of calls but good calls. With ten calls I'll get a deal. 2000 postcards, cost 650.00 dollars. A recent house I bought, the guy shoes up with a folder full of mailings. letters, full color postcards, over sized postcards tec. My postcard was the cheapest of the bunch. I asked...why did you call me? He said I mailed him more frequently than the other guys. same thing on a house I bought today. Keep the message simple and be yourself. Just keep mailing and you will buy houses. Always point out the benefits and try to use a little humor. I would still rather send more postcards to the same list fewer letters to a smaller list.
Richmond, VA · Member since 2013 · 10 posts · 0 votes
12y
@Alison M. Your post was great and very informal im a new investor in Richmond, Virginia launching my first direct mail campaign soon and I listen to different opinions here on BP and mostly are different on PC vs YL response ratio than local investors here in my area. Ive learned a great deal from this thread already and I plan to use YL for the my first mailing of 5k.
Real Estate Professional · Falls Church, VA · Member since 2012 · 238 posts · 83 votes
12y
I've never used them. However, I call on ones that I see or have one of my kids do it if we're driving. Never have gotten the investor on the other end of the phone! Just voice mail, call centers, or dead air.
I agree with Michael Quarles. Almost every piece we are developing now is a variable print piece.
We use (mostly variable print) postcards that employ high-level branding that - we believe - is memorable even when they are only seen for a few seconds. And all our marketing has a common "look and feel" so they know they have seen it before. To Michael's point, you need to have your message there at the time the need arises for the home seller.
As a marketer with 30 years of experience, I'm not sure if the question is YL vs. PC. I think it's about creating awareness, laser focused targeting & messaging, and branding - all done CONSISTENTLY over time. We'll do direct mail (postcards) to our lists, followed up by door hangers in our target areas. The postcards and door hangers have the same look, messaging, etc. It is these multiple touch points, over time, that cause people to remember you and contact you when they have an urgent need to get out of their house.
Hey Dev, how do you keep the look of a yellow letter consistent with a postcard or a business letter? It seems that people will respond different to different approaches which I would imagine is the main reason for changing from letter to postcard to zip letter...I like the yellow letter and I like business letters and postcards as touches to the same people, so I'm trying to figure out the campaign and if it is ineffective to send different pieces that don't tie into each other.
SFR Investor · Lees Summit, MO · Member since 2013 · 18 posts · 3 votes
12y
My experience has been that you have to hit a target audience 2-3 times before your message sinks in unless you happen to hit them at the perfect time. Personalized letters are huge and easier to do with the variable printing capabilities of many printers today. You can outsource something that looks like a personal letter for almost the same cost as an 5.5"x11" jumbo postcard.
I've been marketing since last September and no deal yet. I will say my thinking was to get a deal and then worry about sending more letters or postcards to same address. I thought I will surely get a deal with 3-4000 yellow letters sent out. Don't let response rates fool you too, mine was around 7%. I know my market well too because of all the properties I've looked at and comps I've pulled. I will focus more on Postcards and also setting up a mail campaign every month from now on. Don't let anybody say this business is easy, it takes lots of telling yourself, (This Will Finally Be The Deal).
@Scotty Hamill when you say "setting up a mail campaign every month from now on" , do you mean you will target the same exact addresses over and over again, or do you mean you will send another batch to addresses not targeted before?
I'm not certain your question can be answered well. As someone who sends a lot of mail out I find two very distinct results.
Large budget with a large prospect list and great infrastructure means post cards will be your answer. Low budget postcards are worthless.
Low budget average list and minimal infrastructure yellow letters will be your answer.
I get calls often from investors who are successful at each.
I have a mentee in Texas sending 50,000 postcards a month and he's buying a house a week.
I have another sending only yellows in new York buying fewer however his average net seems to be greater.
Then a guy in San Diego sends 35,000 postcards a week and does 400,000 a month net.
The best answer I can give is to pick one or both and do it. Don't stop.
Why would post cards be better just because the list is bigger?
Everyone keeps asking postcards or letters but isn't mixing it up supposedly what works best?
If the big guys are only doing post cards is that not the best way to do it for everyone? If not, why aren't the big guys doing letters?
Also aren't we supposed to be making the letter personal with handwriting etc, like a bandit sign concept...but then how do you brand your company which is supposed to be a professional logo?