direct mail statistics


Numbers and Statistics…

I have just about beaten this topic to death (or so I thought), but I still see real estate investors every week throwing in the towel after sending out two or huge mailings to what they have determined are potential motivated sellers.  Let's face it; numbers and statistics aren't always sexy.  But, there's no doubt that great results are.

First of all, let’s talk about the criteria for your list. You have to narrow it down. Not everyone is a potentially motivated seller, so how do you do that?


First Things First

First of all, pick a niche for your list; just one. It can’t be two or three; it has to be one. You might pick absentee owners, NOD’s, foreclosures, probates, or some other narrowly defined group. Let’s just say you chose absentee owners.

Narrow that down one more step by choosing only out of STATE absentee owners. If you live in a big state like CA or Texas, then use a radius of about 3 to 3 ½ hours driving time. Choose folks that live outside that parameter. If they live close to the property, they can just easily drive in and take care of the house (no pain). Remember that in order to be a motivated seller, they must have some pain. You are there to bring them “pleasure” by taking the problem (the house) off their hands.



There are 4 important steps to follow.

  1. Eliminate bad zip codes and areas you don’t want to work in.
  2. Pick only homes with at least 50% equity. Remember that 70% formula? It won’t work in most cases if they don’t have at least 50% equity. Unless….your strategy is lease options or other creative financing strategies where equity isn't important.
  3. Decide what price range the house should be in. You are looking for middle-of-the-road, bread and butter homes. If the median home price is $160,000 in your area, I would pick homes that have an ARV of $50,000 to $250,000 or so.
  4. You don’t want high-end homes unless you already have high-end buyers on your list.

[Tweet “Statistically, 81% of your deals will come at or beyond your 5th mailing.”]

Response Rates

This is where you have to remember that successful marketing is an ongoing process; that’s why they are called marketing campaigns.

A study done by the Sales and Marketing Executives International resulted in some impressive statistics. The number of deals derived from direct mail campaigns looks something like this:

  • After the 1st Contact: 2%
  • After the 2nd Contact: 4%
  • After the 3rd Contact: 6%
  • After the 4th Contact: 10%
  • After the 5th Contact: 81%

On a quick note, these statistics for real estate investors are pretty much in line with the general response results for all direct mail marketing.

The study went on to say that 90% of the people gave up after the 3rd contact.

If you want to be one of the 10% who sticks it out and closes 81% of the deals, you must have a system for doing this. Without some type of system, it will never get done.


Here is another statistic for you; think about this for just a minute:

  • 48% of salespeople never follow up with a prospect
  • 25% of salespeople make a second contact and stop
  • 12% of salespeople make more than three contacts

[Tweet “90% of the people give up after the 3rd contact.”]

Here's the really important question you have to ask yourself:

Which group are you in? Which group do you want to be in?


Here are some other resources to help you get awesome results with your direct mail campaigns.

Creating Absentee Owner Letters That Get a Great Response

What Exactly Are the Components of A Direct Mail Campaign?


If you want to schedule a 1 on 1 call with me to talk about specific strategies for building your brand and creating more effective marketing for your business, you can do that by sending me an email at

If you're not already subscribed to the blog be sure to do that today so you don’t miss any of the business building tips I have coming your way. I want this year to be your best year ever!  And if you enjoyed this article, please share it.



Pin It on Pinterest

Share This