List size for 1-2 deals per month?

15 Replies

Interested in hearing opinions from people who are actually consistently closing 1-2 or more deals per month.  

I bought a list of 400+ and sent out around 200 letters, and got 12 calls.  Most of which were tire kickers, but I looked at one house.  Overall there was no deal, my friend who does many flips per year came with me to look at the house and help negotiate.  The guidance is nice, since I am new to this.  Good learning experience, regardless.  That said...

I am going to diversify my mailing groups, but overall how many postcards/YL would you send if you wanted 1-2 deals per month?  Would 1000 mailers per month be sufficient to various prospects?

It surely depends on your market, but in general, it takes roughly 25 leads to get 1 deal. If you are getting an 8-10% response rate, then you should send out 250 letters at least to get one deal a month. 

If you're getting a 6 percent response rate, you should be around 420 letters at least to meet this quota. But yes, I would definitely send out 1000 for the month. And hit each list once a month for 3 months to squeeze out every lead. That's what I would do. 

Be persistent and keep rolling! Good luck

You should plan to hit each lead much more than once a month for three months. Three months is the average response rate for a single person. I say try once a month/once every six weeks and continue this six times. That should be better. 

Also, they say YL yield roughly a 1% success rate, correct? So I'd mail out at least 1000 per month. You need to determine reponse rates for your particular market. 

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Originally posted by @Jade Davis :

Mik with you in this one jade. You have to  to hit the same list for at least 6 times or more to get this leads flowing in. You have got to have a specific system to follow when the leads do come in. For me the word NO just means NOT RIGHT NOW. they will somewhere down the road sell that house and if you are consistent with them and follow up with them and let them know that you are not just some money hungry person looking to get tich quick and make them remember your consistency then you will get those deals and if not theirs then thwy might tell you of someone they got to church with that is a tired landlord and give you a phone number. Persistence will get you more deals than inconsistency 

Thanks for the input everyone! 

I'm just going to keep mailing letters.  I should probably get a larger list though.  

I am looking to do 1-2 deals per month.   Would you guys be looking at a list of 1100 or 2600?  I currently hand wrote all the letters, but now I it setup it up for automation so I can get hand written fonts on yellow lined paper.  Took some trial and error but that will make things much easier.  I have access to an industrial printer so the volume isn't an issue.

I'm looking to hit:

1100+ absentees

65 y/o+ deed holders w/equity in specific zip codes( 200-400 names)

Code violations

Driving for dollars

These are the marketing strategies I am currently implementing. 

^ are these reasonable strategies to meet my goals? 

@Jason Douthitt  I would do at the very least 1k a month in letters. You need to be probably closer to 2k in order to hit your goal. Make sure you are not letting any slip through the cracks. Also make sure you know what you're doing when pulling a list. 2k notices a month to the wrong people is worth less than 1k to the right people. I personally like high equity out of state owners. Also the more you work with the leads the better you will get at closing them.

I understand that most successful campaigns are running a specific list for 6 or so months. My question is, How often do you pull a new list for a specific niche? and how do you personally stagger the mailing so you can work all the calls? Can anyone give me an example of how they like to do it (Technique)? 

I ask since I am a working solo right now. I find that the busier I get taking calls or viewing property, the more disorganized I get. 

Thanks

Depending on how your letter is written and how targeted your list is, you will then have your number of how many letters to send. Having said that, here are some "generalized numbers":

Typical response rate - 1-2% (assume 2% best case)

# of leads to have 1 deal = 20

deals desired per month = 2

2 x 20/ 2% = 4,000 letters/mo

So @Wayne Woodson 's numbers are pretty close. Having said that, some of our letters have a 5% response rate...

A 2% response rate is the norm for postcards 5% is rare. My calculations also assume that every 30 leads you will get a deal, this may be different depending on where you are located.

Originally posted by @Wayne Woodson:

A 2% response rate is the norm for postcards 5% is rare. My calculations also assume that every 30 leads you will get a deal, this may be different depending on where you are located.

 30 leads to get one deal...sigh.

How many phone calls should expect roughly if you send out 500 letters? We are beginning our first DM campaign in January but my biggest concern is getting more calls than we can handle. Trying to talk my husband (business partner) into an answering service where you pay per call however he thinks I'm trying to spend too much money that could be going to marketing. 

@Jade Davis From 500 postcards you should get 10 calls. If you are only sending out 500 postcards you really do not need an answering service. When you start doing 2000+ a month you will.

Also keep in mind this is on average throughout the year. You may send out 500 one time and get a deal or send out 3000 and get no deals.

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While you haven't sent a ton of mail, I would suggest using a bit of "industry standard" numbers combined with your own personal results. As you send out more mail and have more data, you'll be able to refine the number on your own. You sent out 200 pieces, got 12 calls back or a 6% response rate (btw, I'd KILL for a 6% response rate). From those 12 calls you got 1 meeting. Start extrapolating those numbers out:

2000 letters = 120 calls = 10 meetings.

5000 letters = 300 calls = 25 meetings.

Then as you go on more meetings, start figuring out how many meetings you need to go on (on average) to close a deal. Then extrapolate some more. Within 6-12 months, you'll have an extremely good idea of the number of mailers you need to send to hit your metrics.

Finally, there is another aspect here that isn't being touched upon, which is your actual sales/negotiation skills. The better those skills, the better your call to meeting ratio will be and hopefully, your meeting to closed deal ratio will improve as well. So, there isn't one simple answer and there are a whole lot of variables to consider, but it sounds like you are on the right track.

I am by no means a mail marketing expert. I can tell you that 200 letters is essentially nothing. Most new investors have no idea how many mailers it takes to get deals. By that I mean they way underestimate the number needed. 

It is definitely not hundreds. It is thousands of mailers. If it is ten thousadn mailers you are probably doing something wrong.

As already mentioned probably more when you start as you skills as evaluating and negotiating are not as good.