February 22, 2011 in Marketing
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.