I have been at wholesaling now for over a year with no results. The first 9 months of that year were in my college market but for the past 3 months I have been working around Montgomery, Chester and Delaware counties in PA. I have been using DealMachine as my primary marketing method and have sent out approximately 450 postcards. The thing that is worrying me is that I have only revived 3 calls, one from a buyer one and 2 from unmotivated sellers. I also received a text from a lady complementing my postcard and a call from a guy who was very angry about the photo. This respond rate is unacceptable I have been at this for over a year and I am close to my breaking point. I don’t know if I can continue to work hard and spend money to get 3 calls. Really 3 months of work to get 3 calls is pretty awful.
Direct mail responses have gone way down. Getting a deal from 450 post cards would be extremely lucky. You should save money until you have the ability to consistently send out many thousands each month for at least 6 months. Unfortunately that's the only way you'll be able to judge whether or not what you're doing is working. 450 is too small a sample size.
I coach some of the top wholesalers in the business doing 100-300 deals a year and average response rates for direct mail are below 1% in most markets.
Response rates however are only part of the equation as I like to look at deals per campaign or marketing channel not leads. You can have a 10% response rate and no deals or a .5% response rate with deals. It’s all about conversions not leads.
That being said the most effective approach for driving for dollars is cold calling. It’s also way less expensive than sending mail.
Also you need to have a realtor you can send retail leads in exchange for a marketing fee to help you cover the cost.
@Michel Lautensack I agree with Nick. If you want the best out of your direct mail campaign then you need to be persistent with your mailing. You need to mail to that same list for at least 6 months before considering it a dead list. May I know where you got that list from? Also, try saving up some money so that you can mail at least 1000 homeowners for 6 months straight. That's how direct mail works.
If you don't have enough marketing budget then try cold calling the list. You can skip tracing your mailing list from BatchSkipTracing.
@Greg Dickerson I have been thinking of switching to cold calling because I have seen a lot of people doing it with the d4d list. I will try that!
I have said this before so I apologize if I am repeating.
Get a website.
Why? a good credible website will have a conversion rate between 10% and 20%.
Anyone that does not have a website, doing wholesaling is doing it wrong. I do not care how many deals they make. They are throwing money away! Period!
You get a credible website and work on SEO. Is there only one way to skin a cat? YES, YES THERE IS!
You know what the "method" of pretty much everyone is?
"I am not going to think, I am just going to do more". FOr most it is quantity over intelligence..
So what do people do to get more deals? They blindly pump more money into marketing. They send more postcards, they worry about what to put on said cards, what to say to sellers, what color postc ards they should use. That is NOT thinking that is just wasting time.
If anyone was really thinking they would make the same conclusions I am making.
So back to my advice.
A credible website wil give you a great conversion rate.
DMM gives you about a 0.1% yes that is 0.001.
This means for every 1000 cards you send you will make one deal. Are you KIDDING?! Those are HORRIBLE numbers.
Would you go to surgery if the chance for success is 1 out of a thousand? NO! yet you do so much work and effort and spend so much money for a 0.1% of success? I don't think so.
Now consider the way of intellegent thinking deducting analizing tweaking improving.
When I used to send mailers out, my conversion rate is about 70%.
No way you say. Well, yes way.
You know why?
The goal of you sending mailers out is a deal. That is the measure metric of success to evaluate your campaign.
My ONLY goal for my mailers is to simply visit my site. That is a lot easier for a potential seller to accept than to be convinced to sell their house at a discounted price.
So every 100 cards I sent I drive 70 people to my site.
As my site has a 15% conversion rate.. that is about 10.5 people that will fill in the form. That is 10 fully grown humans and a set of legs!
From these 10 people, you sign 3 contracts. So every 100 cards I send we get 3 contracts.
that is 3% conversion rate. (Honestly I still think this is unacceptable and just horrible... but that is what you get doing DMM)
Now compare 0.1% to 3%
So this method would get you 30x more leads!
NOW we are thinking!!!
Lastly... the most effective approach is not cold calling. The true champion of lead generation simply is SEO.
Free leads, and super eager to sell, and in abundance: