We get a lot of questions from students about mailing postcards versus mailing yellow letters for direct mail. The reality is that postcards cost about half of what yellow letters do so the results might be half of those of a yellow letter but dollar for dollar they are about the same.
If you are scaling big and mailing out 10,000 or 20,000 items then you are probably going to want to do post cards since it is more cost effective.
Post cards work. So do yellow letters. The key is to actually MAIL THEM instead of reading about it and doing more research. Many new investors get stuck in the paralysis analysis of research mode. Make some postcards and send them out. Just about any mailing house can create postcards like this for you.
Here are some sample post cards that we have used.
Front of the Post Card (click on the image to see a larger version)
Back of the Post Card(click on the image to see a larger version)
This card has worked well for us (click on the image to see a larger version)
So has this one… (click on the image to see a larger version)
And this one….. (click on the image to see a larger version)
I don’t think the type of post card you send matters that much. We get about the same results no matter what type of card we send. What is much more important is CONSISTENCY. I would rather see you spend $300 a month mailing 500 postcards for 6 months (total ad spend $1,800) than I would seeing you spending $1,800 in mailing and then giving up (what a typical new student does). The first method of marketing is consistent and measurable. The second is not. And make sure this is not the ONLY way you are marketing for deals. You should be making offers, putting out bandit signs, posting ads on Craigslist and doing whatever you can to build your cash buyers list and your motivated seller leads.
Remember to only mail out the amount of post cards you can handle. If you have a 1% response rate then 1,000 post cards will result in 10 phone calls. If you can handle 10 phone calls a week then mail 1,000 post cards a week. If you cannot afford that, or if your time is limited then start small and mail out 250 postcards a week. But be consistent. There is no point in mailing more than you can handle since if you can’t follow up on the leads then you will waste your marketing money.
BEFORE you mail make sure you know what phone numbers or web sites you are using (if you are putting web sites on your mailers – we usually don’t). Also make sure you know what you will say when sellers call you (use our script). When you start out mailing you can use your cell phone but it is better if you track your calls with a service like Call Rail since you will be able to track how efficient your marketing is and you will never lose any leads.
Remember to track how many calls you get for each mailing, how many of thos calls with sellers turn into appointments and how many appointments turn into deals. These are your key performance indicators (KPI’s) and they are crucial for you to keep track of. You could use something as simple as a spreadsheet to track your leads but if you are serious then you should you put your leads directly into a CRM like Lex Real Estate System .
As your business grows, and your profits increase you will want to consider hiring someone to be an acquisition manager and you can have that individual answer the phone, speak to the seller, make the appointment and visit the property. This is when you will start making really big money. It is also a great work around if you have a job or don’t have the time to follow up on seller leads. Expect to pay an acquisition manager around 10% to 15% of your profit on deals.
Keep track of your mailings and your motivated seller calls lists by using call tracking. We really like Call Rail for tracking numbers. Ideally get a new number for each mailing piece and for each mailing list so that you can track your results for each piece and each mailing. If you start mailing consistently you will see results.
And make sure you mail the same list again 8 to 10 weeks later. Most beginners either don’t mail at all or give up way too soon. Here is my challenge to you. Take me up on my 6 month challenge. Mail just 500 postcards for 6 months consistently. Use my script and after six months tell me you didn’t get at least one deal out of that. If your response rate is 1% then 3,000 postcards mailed out over 6 months will result in 30 phone calls which should result in 10 to 15 appointments and 3 to 6 deals. If you make just $10,000 per deal then you do the math! If you take me up on this challenge make sure you let me know when you get that first deal done. Send me a picture of you in front of the house or holding the check. Every time we do that it shows other new students that this can be done.
You could be flipping houses too! A great place to learn how to start is by coming to our Wholesaling Boot Camp which is also called the Distressed Real Estate Boot Camp