Marketing is super important for any business when it comes to generating leads and converting those leads. It’s no different in the property investing business, because as an entrepreneur, you’ve got solutions to other people’s problems and you want them to know about it.
Direct mail is a popular component in the real estate industry – particularly, postcards and letters. When it comes to direct mail some students ask me if it’s better to mail out post cards or letters, or does it even matter?
The marketing experts will tell you that color matters and letters have the best response rate over post cards, averaging between 5 and 15 percent response rate. Granted, not everyone that calls you will be super motivated to sell their home at the discounted price you desire, but it’ll get your foot in the door, so you can have a conversation.
However, postcards can be quite effective too if their created correctly.
Why do letters work so well?
Because they resemble a hand-written letter, and these days that’ll get someone’s attention. You can actually write the letter yourself, but most people use a computer to create letters or download one that’s prewritten. Put that letter in a hand-addressed envelope and you’re well on your way to getting people to open and read how you’re interested in buying their home.
You may get a lower response rate when you send postcards, but the people who do call you tend to be more motivated about selling their home. With the letters, it seems some people call out of curiosity, rather than genuinely being in a position where they are motivated to sell their home.
Also, letters tend to be longer and drawn out. With postcards, you get right to the point of your message – that you are seeking to buy discounted houses with cash. Those that are ready to consider this are likely to call you right away when they see that message.
See, it’s not always about the number of phone calls you get. It’s about how many deals you close each month. I’d rather get ten calls a month and close four of them than thirty calls and close one.
Which one should you use?
You can always use both types of direct mail marketing and see what your response is. If letters are getting you a higher response rate – and deals – then keep using them. If postcards are getting you great leads and deals, then keep using them. The important way to know what works best for you is to test both, or more, methods out and go with what works best!
Just don’t give up if you’re not seeing the results you desire. A simple tweak may be all that’s necessary or perhaps it’s simply the time of year. Consistency is important when it comes to any type of marketing. Be persistent and optimistic regardless of what type of mail piece you send out, and remember to keep sending them out!