When you are just starting out as a real estate investor, if you are not already an experienced marketer, figuring out how to market your business can seem pretty confusing. The mistake I see folks make time and time again, is believing that they can do a “marketing blitz” and sit back and wait for the leads to roll in; thinking they are finished with marketing.
It’s very common for a real estate investor to send out a post card or letter a couple of times, put out a bunch of signs and then give up after this initial exercise when they haven’t gotten the response they were hoping for. In reality, marketing is an ongoing process. If you are using Bandit Signs, you have to keep putting them out. People take them down.
I love direct mail marketing. It is my best source of leads. I would encourage everyone to use direct mail marketing as a way to pull in motivated seller leads. This works especially well for probates and absentee owner leads, but it can be used in many other ways. To be successful at direct mail marketing, you must continue to mail these folks on a regular basis. Always, begin with the end in mind. Motivated sellers mean $$ in your pocket at the end of the day.
Here are some statistics you want to remember.
When you look back at the leads you get from your marketing efforts after a 12 month direct mail campaign, they will look something like this. The typical response will be:
2% after the 1st contact.
3% after the 2nd contact.
5% after the 3rd contact.
10% after the 4th contact.
80% the 5th -12th contact.
You can look at these simple statistics and see just how important it is to implement a marketing plan, and carry out that plan. Whatever marketing strategies you choose to implement, understand the importance of continuity. In my opinion, this is what ultimately separates those who succeed from those who don’t.
I hadn’t thought about how important a direct mail marketing campaign could be to motivate probates and absentee owner leads to sell. However, your statistic that 80% of people respond after the 12th contact shows just how effective direct mail marketing can be. If I were trying to get an absentee owner to sell, it definitely seems like persistence is key. Thanks for the article.
Education is so important to real estate investors. It is one of the main things you can do to protect your money and your investment.
henry scott
on June 21, 2011 at 6:00 am
Real estate investors have to consider lots of things during investment because it is really important decision because it all related to our money. I think after reading your blog many peoples gets good ideas about the real estate investments. real estate listings va
Anonymous
on February 23, 2011 at 4:00 pm
Thanks Erby.
erby
on February 23, 2011 at 3:44 pm
My apologies Sharon. This is Erby Beauvais. We go back and forth on FB @ times.
Anonymous
on February 23, 2011 at 3:04 pm
I have been using (white) letters for several years, but I am getting ready to change things up. I am going to be using postcards and a mailing service. I personally don’t like yellow letters. As for how long you have to mail to absentee owners, the answer is forever; as long as you are in business. Your marketing should be continuous. This is what will separate you from your competition.
I bought a house from an absentee owner this year that I had been marketing to for 3 years. She lived in California and her brother lived in KY in the house. (unmotivated). Her brother moved out and she rented the house. The tenant started giving her problems. (getting motivated). The tenant moved out doing about 40K in damages. (very motivated). This cycle took 3 years but when she finally called me, she was VERY motivated. Since I had continued to mail her, I was the one she called.
The thing you need to remember is that time and circumstances change all things. The unmotivated seller of today, can become motivated at any point so keep mailing. I would appreciate it if you would include your name when you post so I can get to know you.
Ibas001
on February 23, 2011 at 12:54 am
I was just speaking to a fellow investor today about direct mail marketing and how long should it be done. I just sent out a campaign in a particular market earlier this month and for my first contact I’m at about 2%. My response was based on post card. When you are mailing to absentee owners, do you use post cards or yellow letters?
~ About Sharon
Hello from Louisville, KY, and thanks for stopping by my blog!
I love this business, and I am passionate about helping other people become successful real estate investors.
Come along with me on my journey as I create a business and a lifestyle that I love.
Hazel – 80% of your leads come after the 5th contact. You have to keep mailing.
Sharon
I hadn’t thought about how important a direct mail marketing campaign could be to motivate probates and absentee owner leads to sell. However, your statistic that 80% of people respond after the 12th contact shows just how effective direct mail marketing can be. If I were trying to get an absentee owner to sell, it definitely seems like persistence is key. Thanks for the article.
Greame – That is so true. Knowledge is power.
Henry-
Education is so important to real estate investors. It is one of the main things you can do to protect your money and your investment.
Real estate investors have to consider lots of things during investment because it is really important decision because it all related to our money. I think after reading your blog many peoples gets good ideas about the real estate investments. real estate listings va
Thanks Erby.
My apologies Sharon. This is Erby Beauvais. We go back and forth on FB @ times.
I have been using (white) letters for several years, but I am getting ready to change things up. I am going to be using postcards and a mailing service. I personally don’t like yellow letters. As for how long you have to mail to absentee owners, the answer is forever; as long as you are in business. Your marketing should be continuous. This is what will separate you from your competition.
I bought a house from an absentee owner this year that I had been marketing to for 3 years. She lived in California and her brother lived in KY in the house. (unmotivated). Her brother moved out and she rented the house. The tenant started giving her problems. (getting motivated). The tenant moved out doing about 40K in damages. (very motivated). This cycle took 3 years but when she finally called me, she was VERY motivated. Since I had continued to mail her, I was the one she called.
The thing you need to remember is that time and circumstances change all things. The unmotivated seller of today, can become motivated at any point so keep mailing. I would appreciate it if you would include your name when you post so I can get to know you.
I was just speaking to a fellow investor today about direct mail marketing and how long should it be done. I just sent out a campaign in a particular market earlier this month and for my first contact I’m at about 2%. My response was based on post card. When you are mailing to absentee owners, do you use post cards or yellow letters?