Success in real estate investing largely depends on successful marketing of your business. Targeted direct mail delivers excellent results given two conditions:
1) That your leads are well targeted – for example if you are targeting motivated sellers, that you reach people who NEED to sell their houses
2) That your direct marketing piece – your letters or post cards must stick out from the pile and convince them to act NOW
In this article, we focus on effective tips that guarantee success of your direct marketing.
Laser targeted leads
If your leads are not well targeted, you are unlikely to get good results.
If you target motivated sellers for instance, you must target
i) People who really NEED to sell their houses – such as people going through divorce, bankruptcy, probates, burned landlords, expired listings, etc. In other words, your target is people who find that their house has become a liability in their life and they must get rid of it now
ii) Specific neighborhoods and price ranges – your business model is the most likely determining factor for this
iii) Equity – depending on your business model, you might need people who have some equity in their houses In this case, someone who refinanced or bought their house last year may not be your best bet
Unique marketing proposition
You are likely to get minimal response if your marketing piece looks just like the other “We Buy Houses” mail. Your marketing must stick out from the rest:
i) Noticeable mail piece – use post cards with screaming colors. Red, yellow, green and blue seem to give me excellent results in my marketing. In other words in a pile of mail that motivated sellers receive, they must be able to instantly pick yours out of curiosity.
If you send letters, they must stick out from all the other bills, and junk mail they receive every day. A regular envelop hand-written in red with a big odd postal stamp gets excellent results.
You can also use odd-sized or colored envelops to increase noticeability.
ii) Powerful headline – it must compel the reader to continue reading
iii) Personalized – whenever possible, your letters should be fully personalized. They must feel you are addressing their personal needs
iv) Powerful content – you must agitate the reader to really NEED what you are offering by stating the problem and offering the solution
v) Benefits – The solution you offer must include benefits of taking up your offer. They need to see you as the only person capable of providing a solution to their problem. You must create an offer they cannot resist
vi) Deadline – you must have a deadline in all your marketing a specific date. Or you can tell them you need to buy only one more house. This gives them a reason to act NOW!
vii) Call to action – you must tell the reader what they need to do next. Go to this website and sign up. Pick up the phone and call this number now. It must be precise and direct
viii) P.S. – most people read the P.S. before anything else. It needs to re-state the benefits, deadline and call to action to be effective.