Kirkland, WA · Member since 2013 · 15 posts · 1 vote
Hey there, so after a couple months of researching I've decided to target absentee owners by direct mail campaigns to start my wholesale business. I was wondering how many leads I would need to get 1 deal within 2-3 months? I'm aware that consistency is the key and that I shouldn't expect much of anything until the 3rd mailing or so, but I'm strapped for cash at the moment so I can't mail to too many leads. The first deal will be a godsend and help my business grow tremendously so I'm willing to amp it up after that but for now I only have about 230 out of state absentee owner leads off of listsource. Would this be enough to generate at least 1 deal in 2-4 months of consistent mailings say once per month or do I need more?
Yes, I can purchase a list of in state absentee owners but through research have found out of state to be far more likely to want to sell. I could also expand the farming area because I only have a 5 mile radius from my zip code.
I suppose my budget could be up to 300 per month at the moment but I can't keep that up for very long. Possibly for only 4 months, then I'll be out of money.
So my question is still, is 230 too small? How many leads should I be mailing every month to start out?
Tough to say honestly.. I am in a similar boat in my area. It's a small town, and when I use Listsource I usually end up with 150-200 names and addresses. You should be able to turn something up in a few mailings. Good luck!!
I send out 500 a month divided into 2 mailings. It gets the phone ringing.
Took 4 months before I had my first deal, but thats me. Your mileage may vary.
I would imagine that you will get some calls, but there's no real mathematical formula to answer your question. The only way to find out is to do it, then see what kind of response you are getting, then adjust accordingly..
I took a part time job to finance my marketing, so i wouldn't be taking money out of my normal budget.
You could do that, or maybe hand write your letters, or find some other way to reduce the cost so you can mail to a bigger list? Time to get creative!!
I agree with @Joe Butcher. I started sending out 50-100 per week back in 2006. Mostly to out of town owners and foreclosures. I don't remember exactly, but I believe it took 2 months to get the first deal under contract and another 2 months to purchase it, market it, and sell it. The 2nd deal wasn't for another 2 months after that. So it took a little while to get going, but it did work out for me.
The simple answer is, it takes what it takes. Bandit signs are very effective to get the phone ringing, so consider each course of action. The key is to take action.