Direct mail marketing remains one of the most cost-effective forms of marketing across industries. Particularly within the real estate industry, direct mail can be one of the most fruitful strategies for generating leads out there. The top real estate investors cite direct mail among their top sources for leads. For investors who want to the most cost-efficient way to get leads post-skip tracing, direct mail is among the best ways to go.
Different forms of direct mail
In general, there are three main forms of direct mail that investors and wholesalers use when sending out direct mail; postcards, lead letters, and blind offers. Once your skip trace is complete and you’ve compiled a list of leads you can begin to send out mailers to present information regarding your services. Each one of these different forms of direct mail has advantages and disadvantages. Knowing which to use is important to creating the most potential customers or clients.
When it comes to cost-efficiency, postcards reign supreme as one of the easiest and most effective messaging tools. For those looking to get the largest audience for the best price, postcards are the best. When done right, postcards have proven to be some of the most effective tools at generating reliable leads.
Another huge advantage outside of the cost, is how customizable they are. While there are certain elements every postcard should have, beyond that they are yours to create. They come in several different sizes depending on your needs. Keep in mind however, that larger sizes cost more than standard 4×6 size cards.
Postcards are also compact enough that you can pack your entire message into it in a digestible way guaranteeing that your message is consumed before being discarded. Part of that depends on your design, but with postcards you have total control over the design and can craft them specifically to reach certain individuals.
The only major drawback to postcards is the lost time spent creating your card design targeting individuals who will not engage with your business services. However, compared to some other forms of direct mail, this still makes it among the best types of mailers.
In a world that is constantly and increasingly being run by technology and the digitization of everything, sometimes it doesn’t hurt to get back to the basics. Like with postcards, lead letters are incredibly customizable. Lead letters can either be hand-written on a card or a piece of paper, much like a thank you note, or professionally written on letterhead. It’s entirely up to how personal or professional you choose to make the letter.
A lead letter informs a homeowner that you are interested in purchasing their home. However, what makes a lead letter different from other forms of direct mail like a blind offer (see next section) is that it invites the owner to contact your before an offer is made.
An advantage to doing lead letters is that they allow you to handle offers on individual properties and gives you total control over each offer. These letters also give you the ability to build a more personal relationship with the homeowner and lets you make deals on a case by case basis rather than simply distributing mass produced messages that are the same for everyone else.
The downside to doing mass marketing by lead letters is that you will inevitably waste time on people who will not sell you their house. Because these letters are more personable than a postcard, you spend even more time creating them. Additionally, the postage for lead letters is higher than that of other mailers.
The biggest disadvantage however is as a real estate wholesaler or investor, you will waste time communicating with homeowners who will not sell their house at a discount.
A blind offer is the most extensive mailer you can send. While in terms of getting down to brass tax it is the most effective and cuts out pointless communication with someone who will not sell, it also has by far the most drawbacks.
First let’s go over the benefit of sending blind offers. Blind offers typically include one to two page offers enclosed in an envelope containing a direct offer to buy the property. The implication here is that you as the investor have already done the work to prepare an offer prior to mailing. Once received the homeowner has three responses she or he can give; decline, accept, or negotiate.
From a time frame perspective this is the most efficient campaign to run since you immediately know from the first response if they are interested or not. If your offer comes back rejected then you know immediately not to continue pursuing and you save time that may be spent with lead letters or postcards that could still result in a no-sale.
From the perspective of the owner as well, blind offers immediately lets them know where you’re coming from and immediately signals that you are looking to buy at a discount. Since your points of contact relay immediate responses, positive or negative, these are the most efficient campaigns to track and monitor.
There are however some downsides to this form of mailer. For starts, many homeowners who may be open to buying, may be turned off immediately by the low offer and will decline your offer right out of hand.
Another disadvantage is that you will inevitably be missing out on deals because you are putting your offer together without doing any first hand research on the property. Because you cannot examine any special circumstances. Particular situations may justify spending more on a property, but by packaging your offer blindly without knowledge of any such situations you may be missing out on an opportunity if your offer is declined.
The third main disadvantage of doing blind offers is the cost. Mailing out two pages in an envelope is much more costly than mass mailing postcards.
After your skip trace all that’s left is to begin sending mailers. As evident, there are several different forms of mailers one can send each with their own pluses and minuses. Postcards are by far the most economic mailers to send as they are mass produced at the most affordable price and let you to reach the largest audience possible. Lead letters let you be more personable with your prospects and manage them on a case by case basis. However, with both options you will inevitably end up spending time communicating with people who are not interested and that time may cost you in other areas.
Direct offers dramatically reduce that time by essentially cutting out all the back and forth and cutting straight to the chase. Yet this method, while the most direct and efficient as far as timing is concerned, has a number of drawbacks. Due to the potentially perceived abrasiveness of the mailer it can turn people off. Ultimately, you should make a decision based on what you think is the best method for your real estate operation.
How to use Turbo Letters for effective direct mail campaigns
Post-skip trace, for highly effective direct mail campaigns, use Turbo Letters to get your information out. Turbo letters offers the best and lowest pricing for direct mail in the real estate industry. Additionally, Turbo Letters promises a quick 2-3 day turnaround so you aren’t waiting weeks for your product like with other services. If you need postcards, professional letters, personal letters, etc., Turbo Letters has you covered. Just go to their website and select your template to get started with fast and easy direct mail.