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Almost 2 months ago, we released our most successful direct mail blog post to date: “10 Tips for Sending Real Estate Direct Mail (with Examples).”
Given our reader’s interest in sending direct mail, we thought it would be appropriate to write a piece about what direct mail strategies are working for real estate investors.
And then we thought to ourselves, “Hey, we know a lot of real estate investors” (also known as all of our AMAZING clients).
So, we asked them what strategies they use when sending direct mail. This is a compilation of their techniques, results, and advice. Here’s what they’re doing.
Direct Mail Strategy For Real Estate Investors – A Case Study With Our Carrot Members
Brad Chandler, real estate investor at Express HomeBuyers, sends direct mail to prospects once per month. To manage high volume, he splits their mailing list into groups and sends a batch of mail to one group each week.
This is a postcard that Brad sends to his list.
Daniel DiGiacomo, owner, and investor at Baltimore Wholesale Property, sends 10,000 pieces of direct mail every month. Additionally, he sends between 1,000 and 1,500 yellow letters each month. On the yellow letters, he has them designed to look as though they’re written by hand.
These are some pieces that Daniel sends regularly.
Emphasizing that direct mail is a numbers game, Brad said,
“Sending out a couple hundred postcards probably won’t get you a deal. We typically see response rates of 0.5%-1.5%. Our leads convert at around 3%.”
Those percentages aren’t uncommon in the direct mail world, with the average across all industries sitting at 4.25% for postcards.
Daniel has somehow surpassed the average response rate with his direct mail campaign. He see’s a 7%-10% response rate on his postcards and a 20% response rate on his yellow letters. Appropriately, Daniel claims that his success comes from choosing his mailing list wisely.
Build a Quality List
“List quality is the most important part of direct mail,”
“I like to target absentee, out of state owners that are likely older (55 and up).”
As for Brad’s list, his data suggests that the best performers are homeowners with 70% and higher equity, out-of-state homeowners, and probate.
Also worthy of note, Brad says,
“Response rates will be highest when you first mail a list. There will be a lot of people asking to be removed from mailings. As you continue to mail the list, response rates will decrease but you will get high quality leads.”
As a tip, real estate investor Edward Beck, from Quick Sell Buyers explains why quality leads are more important than quantity of leads.
“The main difference I have from all the others is that my stuff is honest and not smoke and mirrors.”
He believes that honesty matters to prospects today, because, in the marketing world, they see so little of it.
“I’m not leading the seller to believe I’m going to pay full price or that they would get a better deal not having a middle man (agent). I believe this is the biggest shortcoming with other mail pieces.”
Indicating that dishonest marketing techniques bring in low-quality leads, he continues,
“Yes they will have a higher response rate but when they make an offer the sellers are in a different frame of mind… The market is flooded with [dishonesty] and I believe [prospects] can smell it.”
Test & Iterate
As with all marketing, testing is key. When it comes to direct mail, you can test the copy, the images, and the style of the postcard.
For A/B testing, Brad explains that sticking with a single postcard makes it a whole lot easier to test accurately.
“We think it is smarter to stick with one postcard. The reason is that sticking to one postcard makes it easier to A/B test new ideas.”
But it’s not just testing that counts. It’s the application of the test’s findings that really makes the difference. On this, Brad says,
“We continuously iterate our copy and design to improve the conversion rate of the winning postcard.”
Having several marketing touch points is critical with direct mail. As Brad explains,
“When you target prospects through direct mail, you also want to target them on other marketing channels. To do this, make sure you get emails and phone numbers with your lists. Have VA’s call the prospects right after the mail is delivered. Also, upload your lists onto Facebook as custom audiences spend some money running Facebook ads to your mail lists.”
What Do You Do?
Hearing what other real estate marketers are doing with their direct mail campaign is helpful. So don’t let the conversation stop here. Brad, Daniel, and Edward made generous and transparent contributions to this piece.
Do you agree with them? Disagree?
What does your direct mail strategy look like and what kind of results are you getting?
Let us know in the comments. :-)