Yellow Letters Direct Mail return rate 2 calls out of 4900 sent?

33 Replies

Hey guys, I just recently launched a campaign here in Oklahoma and my return rate has been horrible I used yellow letters, and I even had @Michael Quarles  help me set up my marketing, and I have only received 2 Actual phone calls out of 4900 Postcards sent... I knew the call rate would be low but I was thinking out of 4900 cards I would be getting .005 Rate of return meaning I would have 24 calls and 1 Deal. Has anyone else had similar results? I figured I would get a better rate of return because I put me and my wife on the postcard, and not just some generic we buy houses that everyone else sends. 

I would love to connect with any wholesalers or investors who are currently marketing and can help me get a game plan moving forward, with such a low return rate, I don't even know if I should e-mail to the list. My thoughts are is this the same list yellow letters uses for everyone else and these people have gotten so much mail that if they see the word house on it they throw it away. any insight into this would be great... 

Also, I know exactly how many calls are coming in I track everything through call rail. 


     

@Mark W Carpenter There are a couple threads that talk about all the numbers. I’ve seen this number on two separate threads: 2400 individual leads to get one deal. I can’t remember if that counted as a callback or just mailing them. Hopefully t was mailing them. 1/2400 is a response rate of .0004. So technically you’re beating that. Albeit barely. The yellow letters I get I just toss. Don’t even read them. You may want to try a more personalized approach. Are you trying to buy these deals yourself or just wholesale them? Personally if I get the wiff of a yellow letter being a wholesaler I just toss it. If you state you’ll buy it yourself, meaning close on it yourself, maybe I’d call you, thats just my opinion anyways

it is highly competitive .. in the market place right now.. if your in an area that others are working you can get folks are getting multiple direct mails calls etc.

the guys I know in this business that get any kind of volume at all send out 50k a month of these.

@Caleb Heimsoth sorry I was not very clear, I am using yellowletters.com, who provides the list, and I believe they get their list from list source. and that is where I designed the mail piece... I am not actually sending out yellow letters themselves... My approach is very personal me and my wife buy houses in your area, a picture of my wife and I company name above number below. It almost looks like a wedding invitation postcard. what is odd to me is i have read over the numbers and talked with multiple wholesalers who say it costs right at about $2,200  per deal, meaning out of spending roughly 3k in marketing they are securing  so many phone calls and out of those calls getting roughly 25 leads that they can work and out of those calls they are getting 1 deal. My partner and I are trying to decide to mail another personal card or go more formal. or if we even mail back out to the same list or not, because I have heard a good rate of return is rough .005   basically 1/2 of a percent.  But I would love to visit with anyone who has some insight.   also, I am buying most of these to wholesale 

Originally posted by @Mark W Carpenter :

@Caleb Heimsoth sorry I was not very clear, I am using yellowletters.com, who provides the list, and I believe they get their list from list source. and that is where I designed the mail piece... I am not actually sending out yellow letters themselves... My approach is very personal me and my wife buy houses in your area, a picture of my wife and I company name above number below. It almost looks like a wedding invitation postcard. what is odd to me is i have read over the numbers and talked with multiple wholesalers who say it costs right at about $2,200  per deal, meaning out of spending roughly 3k in marketing they are securing  so many phone calls and out of those calls getting roughly 25 leads that they can work and out of those calls they are getting 1 deal. My partner and I are trying to decide to mail another personal card or go more formal. or if we even mail back out to the same list or not, because I have heard a good rate of return is rough .005   basically 1/2 of a percent.  But I would love to visit with anyone who has some insight.   also, I am buying most of these to wholesale 

So problem number 1 is using yellow letters.  Everyone mails those lists.  If you go that route expect to mail the same list 6-7 times to get one deal.

When I say buy I mean close on the property yourself.  Are you doing that or assigning contracts?  If you are assigning, which is what I’d assume if I got your letter, would make me toss it.

As far as personal goes, I didn’t mean like including a photo of your family.  (I think that’s unnecessary).   I meant handwriting letters.  

i toss about 10 of those letters a week.  i get them daily.  there are only like 10k wholesalers here in okc.  there are a few that are very productive (although almost all are overpricing their stuff now)  there are a few local guys you might want to talk to or you should consider teaming up with one that is experienced and learn from them.  even if you make less money now it will pay off in buckets in a few years.

@Caleb Heimsoth where do you suggest to get the list from?  In Oklahoma, we can do double closes, and assignments, so I will be doing both. I have experience in both, I work for a wholesaler here in Oklahoma as an acquisition manager. and we have done both and been very successful   

I am just now venturing out on my own and I don't know all the marketing tactics my company uses. i could send you a copy of my postcard on messenger. so you can see what I mean. 

definitely, don't want to have to mail to the list 6 times to get a deal that is for sure, so what list provider do you recommend? 

i have seen a few guys with success when they target specific neighborhoods

Wow, thank you for sharing.  You know during the gold rush days the main winners were the guys selling the tools and clothes.  These days it's the list sellers and gurus selling the 'denim, picks, shovels and wood'. LOL

I hand-pick specific neighborhoods and farm them.  I like tired plexes, but also establish relationships with owners in house neighborhoods, too.  My message is hand-written and genuine.  I offer value to the plex owners and see their units when vacant.  When they want to retire someday, I bet they will call me.

Take different routes and note distressed property. Drive for dollars, but always focus on specific blocks you like.  As a wholesaler, remember this pain before you turn over your sweat and tears for a one-time payday. Find a way to keep it!

Originally posted by @Caleb Heimsoth :
@Steve Vaughan

Don’t forget the bar and brothel owners also made a fortune during the mine rush days lol.

Exactly right!  The point being.... it wasn't the miners (wholesalers)  that made it.  I need to own a brothel, I mean, list service!

Originally posted by @Mark W Carpenter :

Hey guys, I just recently launched a campaign here in Oklahoma and my return rate has been horrible I used yellow letters, and I even had @Michael Quarles  help me set up my marketing, and I have only received 2 Actual phone calls out of 4900 Postcards sent... I knew the call rate would be low but I was thinking out of 4900 cards I would be getting .005 Rate of return meaning I would have 24 calls and 1 Deal. Has anyone else had similar results? I figured I would get a better rate of return because I put me and my wife on the postcard, and not just some generic we buy houses that everyone else sends. 

I would love to connect with any wholesalers or investors who are currently marketing and can help me get a game plan moving forward, with such a low return rate, I don't even know if I should e-mail to the list. My thoughts are is this the same list yellow letters uses for everyone else and these people have gotten so much mail that if they see the word house on it they throw it away. any insight into this would be great... 

Also, I know exactly how many calls are coming in I track everything through call rail. 

What value properties are you targeting? When I have targeted lower value properties the response rate was much higher than when targeting median value or higher homes. I recently mailed about 15,000 postcards to higher end homes and received 3 calls (other than cranks). The upside is that one of these three led to a deal that I should make $40k on by wholetailing it.

Two years ago, I mailed 200 personal letters, got 5 response back, and made 3 deals. $0.50 stamp each letter. 200 stamps cost was $100. Closed 3 deals.

I've been marketing full time with direct mail for about 2 years now. Response rates are usually low as you seem to already know. But yours are abnormally low mainly due to the list. You need to be targeting distressed prospects first before you shotgun equity lists. Notice how some investors here say they just throw them away? That's because they have zero motivation to sell and those are the kind of people you are marketing to. Also, you may want to try some kind of letter instead of postcard. 

I have three properties, my home and 2 rentals. I get these yellow letters and post cards often. But there was one, that was so unique I held on to it for about two weeks before finally tossing it.

I'm trying to remember what was so special about the one I held on to, when I tossed the others immediately.

I think it spoke more about the property and seemed more specialized to it. "We're buying houses in your area" is a very general statement, where as I think they might have mentioned the neighborhood by name. And I do remember it did look handwritten and not printed in a handwritten font. It was in an envelope and it wasn't yellow. It did stand out.

I tossed it because, at this time, I'm not interested in selling. In a year, I will sell my Florida property, but I'm giving my tenant 1st dibs. Because I keep getting these letters, if the tenants don't bother going through with buying it, I might call up one of these wholesalers, in addition to my Realtor.

@Mark W Carpenter Don't stress it And to all the wholesalers out there, including me ! Yes it can be costly sending out all those letters with 1 return, but trust me more will call. There are all type of programs that will give you leads on a whole city and a people search where you can get accurate numbers for those home owners FREE, call them they will know your serious and possibly look for that letter they tossed to the side. I haven't sent out letters yet, but have posted signs and made calls. As a matter of fact I got hung up on. 😂😂 And didn't mind it one bit, cause at the end of the day they will give in to someone if not me, because those back taxes are not going to go away, so I will call him again in a couple days, and if he wasn't motivated at the time, and may have just been upset about the situation. I just figured I caught him on a bad day. The point being made is to follow up with those cold calls.

in order for me to be of any concrete help I would need the following.

1. What criteria did you use to filter your list.

2. Did you use yellow letters or post cards? Title says letters but your content says cards. Huge difference.

3. What did you say in your mailer.

4. What did your mailer look like.

5. When did you send it and what day. And when did they land.

6. Is this your first campaign?

What you could do is send just 300 mailers out. 3 x 100 of a different design and track return rate on each. Then pick a winner and then send a bunch.

DMM is ALLLLLLLLLLL about experimenting tracking evaluating and tweaking.

Your low response rate doesn't nessesarily mean your campaign was bad. The market currently is super slow. DMM is tricky and involved. That is why I hate it.

Most importantly and no offense to your buddy helping you out.

NEVER "just" listen to anyone blindly to do DMM or anything this important really.

Also chances are they are not in your market so its risky to have someone else help.

This DMM is way too expensive. If you think you are not an expert at it and this is why you need help consider this...  DMM is about people and people interaction. You have plenty of experience with it. Do not follow the standard DMM practices. They just do not work. The most successful campaigns are those of people that tested evaluated and tweaked their mailers. If you do not...

The seller will receive 30 cards from 30 investors all identical except for the sender's name.

If such, why would they choose you over mailer #7?