Last week I wrote about how you could save a small fortune by applying stamps to your own letters, instead of having a mail house do it for you. (99% of them will rip you off on postage, trust me on this.)
I’ve also written about how using a live stamp can make you more money versus using metered mail. (Since more people will open your letters and you’ll get more deals. If you use metered mail, more of your letters will go straight into the trashcan without ever being opened.)
And today, I want to share with you the most important direct mail lesson I ever learned, which will save you literally thousands upon thousands of dollars over the course of your real estate career.
Tracking Your Marketing
You see, one of the problems with direct mail is that someone will send out 1,000 letters of a “yellow letter” and then another 1,000 letters of a typed letter and maybe 1,000 postcards. However, they don’t track the marketing at all, so they have no idea which letter or piece of mail got them the most deals.
For instance, one time an investor may send out 1,000 letters and get 5 deals and then they’ll try another letter and get zero deals, but they won’t pay attention to which letter worked the best and they’ll still keep the “terrible” letter in their direct mail rotation.
Can you see how wasteful this is?
Sending out 1,000 letters is not cheap. If you send out a letter and get zero calls and no deals, then you should obviously never use that letter again. But if you send out a letter and get a ton of calls and deals, you know you have a winner and you should role that out to additional zip codes.
You should always be testing your letters too. Just don’t send out two letters and then pick the one that works best and use it forever. You should always be testing your current “winner” versus new letters to see if you can boost the response.
How do you track these results and determine which letter works best?
It’s easy, and there are a few ways you can do it. First off, you have a mailing list: send one letter to half the list and another letter to the other half, then keep track of which half gets the most calls.
You can also “key” each letter by using a special report. For example, every piece of direct mail should offer a special report as an incentive for sellers to give you a call. Well, when you send out the yellow letter, have Special Report A and when you send out the next letter name it Special Report B.
What I’m trying to say is, give your special report different names so that when a person calls to request a special report, you’ll know what letter they received.
In the end, it really doesn’t matter how you track your results, but never again, should you send out a letter without tracking the response. If you start to do this today, in just a few months you should be able to determine the best letter in your “arsenal” and increase the number of deals you do very quickly.