Direct Mail Strategies
When properly used, direct mail is a quick, efficient, and relatively cost-effective way for you to make direct contact with all of the out-of-town and problem property owners in your area. Why just contact out-of-town and problem property owners Many out-of-town and problem property owners are uninformed and out of touch when it comes to local property values. Here are four very good reasons I use direct mail to contact potential option property owners 1. Direct mail is easy to use. All I have to do is sit at my computer, point and click, hit a couple of keys, and it will crank out one of my standard letters to problem property owners, which just needs to be signed, folded, and inserted into an envelope. I use Microsoft Word 2003 that can merge names and addresses with letters. I use window envelopes so I do not have to take additional time addressing them. 2. Direct mail is relatively cheap to use. I am a penny pincher, and direct mail is cost efficient. For example, I can mail out...
Direct mail is one of my favorite ways of finding deals. Gather a list of houses for sale or rent in your area. One easy way to get these addresses is right out of the paper. People list open houses by address in the paper every weekend. Copy down the address and put it in your database. Some cities have a For Sale By Owner magazine that lists fifty or more houses with their addresses for sale. Copy those down as well.
Direct mail is still one of the best ways to generate business, but only if it gets to the right people and only if it gets opened and read (instead of thrown directly in the trash with the other junk mail). To get your mail to the right people, create a carefully developed list that includes the addresses of past clients and people within your sphere of influence, which basically consists of the people you know. Don't expect your direct mail program to just happen spontaneously. Plan it out a year in advance. Select about a half a dozen dates over the course of the year to send handwritten cards to past clients or people in your sphere. Program the dates and nature of the mailers into your database to remind you when to do it. Just make sure to follow through.
The second-most frequent pathway to success is to buy business through massive marketing campaigns. Some agents buy or brand their way to top-level real estate by investing in billboards and bus benches with their names and faces on them, thousands of direct mailers, expensive ad schedules, and all kinds of promotions. Others buy their way to the top by discounting their commissions. By offering themselves at the lowest prices, these agents eliminate the need to emphasize their skills, abilities, and expertise.
Advertising for tenants is another rental responsibility. For rent signs on the building and print ads in appropriate media, such as newspapers for apartments and specialized publications for office or industrial space, can be useful. Billboard, direct mail, and Internet advertising also may be used. Radio and TV ads usually are less effective but may prove useful in some markets. One commonly held belief is that recommendations by satisfied tenants may be the most effective advertising for a building.
Basically, to win an expired listing, all you have to do is make a phone call or series of phone calls. Yet agents create complex and elaborate systems involving extensive postcard mailings followed by sales letters and direct mail packages. They jam the owner's mailbox with cute, clever, and even corny packages, postcards, and letters. They create envelopes that look like they contain express deliveries. I've even seen agent-created mailers shaped to resemble firecrackers which, when opened, reveal the message, Bang Your listing is dead. And you wonder why people call it junk mail. The agents who actually take the time to work expired listings and rely exclusively on direct mail win a distant second place behind those who call directly or use a call and mail combination. An owner with a ready-to-expire listing is flooded with direct mailers, all competing to be the one that grabs the owner's attention and interest. However, what grabs attention is personal contact.
Every 50 people in your Haven't Met database marketed to 12 times a year (12 Direct Mail) 1 sale. business (lead generation from your Met database) require less money per sale than new business. We also understand that while these cost less, they take more time and effort (thirty-three touches as compared to twelve direct mails). Unless you can get more referral and repeat business per person (i.e., establish a clientele of real estate investors), your time will limit the amount of referral and repeat business you can do. Furthermore, the kind of personal attention required to successfully lead generate from your Met database may also prevent you from eventually stepping out of the business and achieving the final stage, Receive a Million. This is one reason most of the Millionaire Real Estate Agents aggressively pursue Haven't Met lead generation in addition to their formidable Met marketing and prospecting programs.
A real estate brokerage initially gets its brand onto a prospect's marketing ladder by exposing the prospect to a consistent marketing message five to seven times in a relatively short period of time, using a variety of media. This means that the broker cannot exclusively rely on just one type of marketing medium, such as direct mail, classified ads, radio ads, or open houses, but rather needs to include a variety of these approaches to create an effective marketing program.
So from the very start, by concentrating on listings first and foremost, you could potentially double or triple your gross income on the same amount of work. If this isn't incentive enough, then consider how listings provide a lead-generation platform through direct mail, ads, signage, and open houses. It is a fact that being in the listings business begets more business. Our research shows that one listing properly marketed should generate enough leads to produce a minimum of one closed buyer.
Direct response marketing is a form of marketing designed to solicit a direct response that is specific and quantifiable. I use direct response marketing methods to create finder strategies that find and drive qualified prospects to me. Let's start with what I'll call finder ads for now. I create finder ads for a number of different applications. I use classifieds, business cards, flyers, mailers, yard signs, and even ad words on Google.
When most agents hear farming, they think door knocking. Although door knocking may be part of it, to me farming is more focused on doing direct mail. I am not against door knocking. I know and you know that door knocking does work. And if it works for you, you should keep doing it.
A key element to include in any branding effort is the development of marketing postcards and other direct mail pieces. These are typically postcards for just listed announcements, just sold announcements, or open house invitations. Given the ease, availability, and quality of online printing
The 12 Direct program is how you work the Haven't Met portion of your database. It stands for twelve direct mail pieces mailed out annually. Our research and experience have taught us that for every fifty people you market yourself to twelve times a year, you can reasonably expect to generate one sale. At a 50 1 ratio, you'll have to have 2,500 people in your database to consistently hit an annual goal of fifty closed sales. Amassing a database of 2,500 people in your market might seem difficult and expensive, but it isn't. However, it will take some focused effort and time devoted to getting the names, moving them into the database, and planning out your 12 Direct marketing campaigns each year. To save time and money, we suggest you plan and set up each twelve-month campaign all at once at the beginning of the year then it can go on automatic pilot for the year.
Advertising With Circulars
Co-op Mailing means that two or more businesses share in the cost and distribution of a direct mail campaign. It's kind of like having you and another non-competing business split the cost of printing, assembling and mailing an advertising flyer to a shared same market base.