Direct Mail Marketing is Hard Work, But the Rewards Are Amazing!

Direct mail for real estate investing is advertising targeted directly at consumers or businesses. The key is that the actual physical advertisement goes directly into the hands of the targeted person. There is nothing in the middle to distract the recipient, like a magazine, a newspaper or a radio.

In addition, good direct mail always includes a “call-to-action.” This means requesting that the recipient makes a phone call, sends an email or goes to a website for more information. Other forms of marketing often only spread the company’s word or message in a vague way.

The other advantage of direct mail real estate marketing is that you can track and measure the results. If you send out 1000 letters, and 100 people respond, you know you have achieved a 10% response rate.

Direct mail marketing requires effort.

Direct mail it not as easy as simply placing and ad in a newspaper or on a billboard. So, why try it? Because it works!

If you place an ad in a newspaper it’s nearly impossible to know how many people see it and what the effect is. But with direct mail you know exactly how many mailings you have sent out. And if your mailing has a low response rate you know you have to make changes the next time around. But if it’s a huge success you know you shouldn’t change a thing.

And the best reason of all to use direct mail? Because it’s created millionaires in many industries… including real estate investing.

If you follow the proven steps – the steps the pros have honed to a fine art over the last 50 years – direct mail is one of the best marketing methods available.

Direct mail marketing strategies for real estate investors:

1) Target your market – Choose your market and choose your customers. As cost effective as direct mail marketing is, it can be a waste of time and money if you spread your resources too thin and market to everyone. After all, one good lead is more valuable than 100 bad leads. The solution? Choose your target market, and get as much value out of that market as you possibly can.

2) Start small – Even the biggest companies test the waters by mailing to a small group before mailing out millions of sales letters. This is especially important for smaller real estate investors.

3) Continual follow up – Don’t just mail once and stop. Studies have shown that each time you make contact with a potential customer or client the more likely it is that you’ll make the sale. Don’t give up on the first try.

4) Never stop educating yourself about direct marketing – There are incredible resources out there: books, blogs and seminars about direct marketing for real estate investors. What worked last year might not work today in direct marketing, so you have to keep up on what the pros are saying about the subject. In short, the more you know the better off you are.

5) Test, test, test! – The best investors make it the top by continually learning, testing and improving their direct marketing campaigns. Use a spreadsheet or a simple database to keep track of your mailings and responses.

Possible target groups for direct mail marketing:

Bankruptcy – People going through a bankruptcy often need to get rid of their houses quickly. Check your local court documents for bankruptcy filings and names of contacts.

Divorce – Just as with bankruptcy, people going through divorce often want to unload their houses quickly.

Death – Estates with property, especially those divided among multiple heirs, often need to be liquidated quickly. Quick sales are often more important to the sellers than getting the highest price, so there can be great opportunities to get cheap real estate.

Pre-Foreclosure – Homeowners who are behind on their mortgages often would rather just sell their properties than go through a lengthy foreclosure process.

Delinquent taxes – Due to the power of the IRS and local and state governments, many homeowners are forced to sell their homes when they get behind on their taxes.

Direct mail marketing overview:

Be professional – Not only in your marketing but also in your manner when dealing with homeowners. Your marketing message should clearly communicate the benefits you are offering your customers.

Repeat, repeat, repeat – Remember, it takes multiple messages and multiple contacts for a seller to decide that you are “real” and pick up the phone to call you.

Always be positive – Don’t waste your time dismissing your competition or putting them down. Not only is this an advertisement for your competition, but it makes you look unprofessional and distracts from your message. Tell your clients why you are the best, and tell them why choosing you is the only logical choice.