I'm getting ready to throw out a direct mail campaign in hopes of landing my first ( and several more) wholesale deals. Before I put together a list and fire it off I wanted to check with the community and see what everyone had for ideas and structure. I know that no matter what list or what frequency I mail I will need to be consistent. So, with that being said, I have committed no less than $1,000 a month to marketing indefinitely. This number is a minimum and could possibly be increased this is just where I know for sure I can sustain. Also, I know my list will not be extremely large and I'm curious on what frequency I should mail. Have you guys had better success with a mass mailing say 1 time a month or break the list in half and mail every 2 weeks? This is not my first direct mail campaign, I mailed a list about a year ago and made too many mistakes to list. The first was I only mailed one time and the second was not working with a partner or mentor to really get through the process and find deals. I won't be doing that again.
I guess my two main questions are as follows:
1. I'm considering mailing a tax delinquent list and a high equity list. What are you guys opinions and have you had success with something else?
2. I'm considering sending out 1/2 the list every two weeks for consistency purposes. What are your thought son this approach and could I structure this campaign in another way for better results?
Any feedback is greatly appreciated! Appreciate your time.
You have the campaign well thought out. I like the high equity. I haven't done the tax delinquent. I'd say that your minimum of $1,000 should work, especially if you are doing it every month without fail. Monitor the results and tweak your message if needed. Track which lists pulls best. If it's considerable then focus on that list. Or try a different one.........good luck
1) Tax delinquent should have a higher response rate than high equity absentee because absentee is the low hanging fruit that all investors target first and it's the most saturated.
2) Once every 3-4 weeks is optimal. Typical campaigns once every 4 weeks for 7 months is good. Why? Because the letter needs to arrive when there is distress and motivation. That usually doesn't occur so quickly.
3) Test, test, test and follow-up follow-up follow-up! It's good to tweak your marketing pieces and other variables to increase your response rate. Tracking your results and optimizing for your market is key, don't just take blanket advice from BP.
What are your thoughts on the generic postcards? Would there be a better potential for positive response if I personalized the message a little?
Yes, you should get better responses if you personalize them more. It's also good to add more than one way for them to contact you - telephone number is standard, an additional email or landing page of a website is even better.
Another question I had. I know there are several sources out there to obtain lists so who do you guys consider to be the most cost efficient?
Join the Largest Real Estate Investing Community
Basic membership is free, forever.