Direct mail

[llaflamme]

Has anyone had any success with direct mailing, I have done some small mailers but really have seen anything come back to make me want to continue the very time consuming propjects.
Lori ;)

[HMiller]

Lori,

Typically, the response rate to farming is low. I probably get no more than a 1% response rate, if that. The key is to mail to the same area repetitively to be effective. The more consistent you are the better your response rate will be. Also, some people keep your mailing for a while and will call you more than a year later. I've gotten responses to mailings I sent out well over a year earlier.

[JoePesci]

Ditto on the low % on the returns. It seams as though the drip mail is similar in returns 1-3% yet takes vertually no time. Have you had any success with that??

By the way I like you Site Tutor Site.

[San Diego Real Estate]

Same rate in my area...the Pros say to mail atleast 6 times a year! ;)

[judyo]

In one of my Realtor magazines (can't remember which one, NAR or local) I read about a gal that started farming as soon as she entered the business. It took 2-3 years for her to start getting anything from that farm but now she's the top agent in her farm area and is very successful.

Also, you should choose your area wisely. Make sure it has a very good turnover rate and make sure that another agent doesn't "own" that area.

I personally think if possible you should have contact once a month, definitely no less than 6 a year.

[Jade456]

Personally I have always tossed them in trash. But just like spamming, eventually you will get some hits. I think people just get some much mail any more that it has become a lot less effective than it used to be.

[billdisc]

Direct Mail has been and still is the most effective form of advertising. It also is the most expensive.

Nationally the response from direct mail has not changed in over 30 years.
It was 1/10 of 1% 30 years ago, and now with email it appears to be the same.

Professionals agree that, if you follow some very simple rules, you can increase the returns 1% to 10% and substantially enhance the quality of the responses.

1.Telephone the prospect to confirm name, title, degree of interest in your product or service, address, etc.

2. Mail the material at a rate that can be called in a day. (25 to 100 pieces)

3. Call after the arrival of the material to;

a. confirm the receipt of the material.
b. send sample or additional information.
c. take a sample order. (If a product is available)
d. set up a meeting.
e. confirm the degree ofinterest.
f. develop a dialog with the prospect.
g. find out if there is interest at this time and “should we keep you on our mailing list?”
h. find out if they use a competitive product or service, whose and why.

If you follow these simple rules you will generate highly qualified leads & prospective customers.

remember "we are the sum of our experience"

[MaxSinclair]

I personally have not found it effective at all. It's very costly. At 58 cents a piece including postage and sending out 1000 pieces at a time, that's $580. Every guru has been saying that it takes about 15 mailings a year to be effective (to generate one account?). I'm shying away from it now.

[billdisc]

Direct Mail IS effective if you use it properly. I repeat:

1.Telephone the prospect to confirm name, title, degree of interest in your product or service, address, etc.

2. Mail the material at a rate that can be called in a day. (25 to 100 pieces)

3. Call after the arrival of the material to;
a. confirm the receipt of the material.
b. send sample or additional information.
c. take a sample order. (If a product is available)
d. set up a meeting.
e. confirm the degree ofinterest.
f. develop a dialog with the prospect.
g. find out if there is interest at this time and “should we keep you on our mailing list?”
h. find out if they use a competitive product or service, whose and why.

If you follow these simple rules you will generate highly qualified leads & prospective customers.

Try testing the above with 100 prospects. You will not be sorry.

[MaxSinclair]

I got yelled at almost every time when I called. :( Perhaps that's just Portland style.

[San Diego Real Estate]

I agree MAX...I like the internet traffic leads a lot better!

[mavisdog]

How do you factor in the "Do not call" regulations?

Direct Mail IS effective if you use it properly. I repeat:

1.Telephone the prospect to confirm name, title, degree of interest in your product or service, address, etc.

2. Mail the material at a rate that can be called in a day. (25 to 100 pieces)

3. Call after the arrival of the material to;
a. confirm the receipt of the material.
b. send sample or additional information.
c. take a sample order. (If a product is available)
d. set up a meeting.
e. confirm the degree ofinterest.
f. develop a dialog with the prospect.
g. find out if there is interest at this time and “should we keep you on our mailing list?”
h. find out if they use a competitive product or service, whose and why.

If you follow these simple rules you will generate highly qualified leads & prospective customers.

Try testing the above with 100 prospects. You will not be sorry.

[Arming Your Farming]

Direct mail works ... when it's done right. I've worked in the direct mail industry and have seen literally millions of real estate pieces come off the printers.

I would say 85% of them are exact replicas -- carbon copies that were never really worth copying in the first place.

Direct mail is a medium (like radio, television, print, web). Within any medium, there are great pieces and awful pieces.

Direct mail can be an affordable, effective way to market your services. But like anything else in life, it takes some work to do it right.

[billdisc]

The problem with most people is that they are lazy.

In many cases the purpose of direct Mail is to get on a one to one basis with the prospect.

If you call the prospect before mailing to confirm name address, phone, etc. and if you call after you have mailed the material; to see if it arrived, etc.

YOU WILL HAVE ACHIEVED THE PRIME PURPOSE-BEING ON A ONE TO ONE BASIS!

Most think all they have to do is mail the material. If you make the calls the quality of the material is secondary.

Now, lets hear all the excuses of why direct mail won't work!

[MaxSinclair]

But the question is: how do you do mass mailing without looking like junk mail that everyone wants to throw away? It may be just me, I don't look at junk mail ads.

[billdisc]

If you sell a widget for $9.95 you may be forced to do mass mailings. Even then you would do many tests before the actual mass mailings. You would test 10% of the list, you would test various messages, formats, prices, etc.

If you sell something of more substantial value to make direct mail effective I repeat:

1.Telephone the prospect to confirm name, title, degree of interest in your product or service, address, etc.
2. Mail the material at a rate that can be called in a day. (25 to 100 pieces)
3. Call after the arrival of the material to;
a. confirm the receipt of the material.
b. send sample or additional information.
c. take a sample order. (If a product is available)
d. set up a meeting.
e. confirm the degree ofinterest.
f. develop a dialog with the prospect.
g. find out if there is interest at this time and “should we keep you on our mailing list?”
h. find out if they use a competitive product or service, whose and why.

If you follow these simple rules you will generate highly qualified leads & prospective customers.

Try testing the above with 100 prospects. You will not be sorry.

PS: Anyone out there interested in reciprocal linking?

billdisc
billdisc@optonline.net
www.HomeportraitsOnLine.biz

[San Diego Real Estate]

But the question is: how do you do mass mailing without looking like junk mail that everyone wants to throw away? It may be just me, I don't look at junk mail ads. I agree Max...that is the million dollar question?

[judyo]

I'm going to jump in one more time. If you choose your farm area wisely and combine it with your sphere of influence and keep the contact up (you can't stop after 2, 3, 4, 10, etc. mailings), you should get something down the road. A farm area doesn't have to be 300-1000 people in one specific area.

It can be areas that you sold a home so people in that area have seen your sign or received Just Listed or Just Sold cards from you. This should be an area that you really liked because of good turnover or because you had a quick sale. A condo complex or building that seems popular is an example to be combined with your sphere of influence & other farm areas.

You know, I've never had one real estate agent send me any constant contact "farming" materials. I'd occasionally receive a Just Sold postcard in my prior house (have received nothing in my current home) from a particular nearby company. If I were not in the business & received any type of constant contact such as a newsletter or other info from an agent, I would definitely consider that agent if I were in the process of selling or buying.

I wouldn't even care if it was a canned newsletter, as long as I received one every month I'd remember that agent. I know you can send some newsletters without having to put them in an envelope. I believe if I were an average buyer/seller/homeowner I'd be interested in at least glancing at a newsletter about real estate and if there was local info all the better.

I would not want this agent to call me, however. That would turn me off. If the agent passed out flags for 4th of July or pumpkins for Halloween that would be memorable (I've never done this).

I personally don't think real estate farming is the same as selling widgets. It's just to get your name/face out there & create familiarity. I also wouldn't waste my money on those mailer programs where your free market analysis piece is mixed in with coupons for pizza & such. I do throw that stuff away.

It is time consuming & costly & I've done it hit or miss in the past & would like to start up a farming area & schedule again because I do believe if done right it will work, but requires much patience.

[billdisc]

There probabily is not any one method of communication to reach all prospects.

It is to that end I propose you consider something that you would give to an existing customer that will promote you to their family, relative and friends for months, even years.

Nothing says thank you like a Custom Home Portrait, it shows your appreciation, encourages repeat business, and generates referrals.

If you would like a sample, email me a hi res pic of a home and I'll demonstrate what I am talking about.

billdisc
billdisc@optonline.net
www.HomePortraitsOnLine.biz

[MaxSinclair]

Great advice, Judy and Bill.

[ibuyhomes]

There are 3 basic fundamentals in direct mail.

The most important is the list. It accounts for 60 to 70% of the success of direct mail. How many realtors send direct mail designed for listings to apartment dwellers.

Secondly is the offer. Give something away free to capture their email address or phone number. Free is the most powerful word in direct mail.
Free moving van
free evaluation
Free Pizza if I visit your home
Free Home Inspection if I list your home

Third is the creative. It is the least important.

A follow up call should increase your response rate 40%.

good luck and good mailing

[CalCoast Realtor]

I have had a very poor response to direct mail. I am a relatively new agent. I have been mailing to my farm areas for about one year every 6-8 weeks. I have had only one return call and all the prospects I call directly are very un-interested. I am shifting my marketing $ but will continue to direct mail.

[billdisc]

Carl,

Consider the following:
1. Accquire a reverse telephone directory (by Street address).

2. Select an area where you have a listing or had a sale.

3. Call as follows "We recently sold (or acquired a listing) in your area....may we send you details in case you or a friend or a relative might be interested? Do Not mail to them unless they expressed an interest!

4. Prepare a Direct Mail piece relevant to sales and listings in the specific area...and how and why Willard Homes earned the confidence and respect of these homeowners. ( a few quotes would go well here).

5. After mailing the Direct Mail piece call to see if they received it and could they or someone they know utilize your services.

As a separate program consider acquiring a high resolution digitial photo of your past sales. (Here is where we can be of service) We will prepare a Custom Home Portrait with a personal signature for you to deliver to each of these customers. This will show your appreciation, encourage repeat business and generate referrals.

Email me for a sample.

[northcaptiva]

I've had good success with direct mail if I used higher quality pieces and better ideas than my competition. However, I have never gotten a buyer lead from direct mail... just listings.

[els]

Hi all,

I am new here but I just had to jump in. It seems to me that cold calling possible clients prior to sending out a direct marketing piece would be an incredible waste of time.

I, too, get the odd marketing piece from time-to-time from agents. I cannot name one who I would call if I sold my home because none of them have truly branded themselves. I would also not like an agent calling me out of the blue.

For example, the last 2 homes I have sold (my own homes), I knew exactly who to call because each agent had branded himself as the "neighborhood expert." Those agents really knew the area and marketed themselves regularly. Both agents had become household names in each area.

Anyway, in my current area, there is no such agent. I truly think the key to direct marketing is consistancy and relevant branding (neighborhood expert, condo expert, beachfront property expert). I also like the freebie suggestion.

[ejourney]

I've had the same issues with our postcards. Referrals is my best advertising and that rarely costs anything (outside the random favors and back scratching...)

[Realestateguy]

I agree that dirct mail works if you follow up.:)

[Realestateguy]

Post cards really work well for me as well maybe it's just the market here in Arizona it has slowed down but it is still good. a true buyers market now.

[lyndon136]

I have recently sent out my into letters and have done a food drive which gave me great results.. I sent out surveys with my intro and had several responses that said there were no agents in the area and they would like a newsletter.. So would it make sense to a newsletter out for like three months, keeping them well informed, with free offers etc., and say that if they would like to keep receiving them to let me know, but if i didnt have a response do like every other month.. If this works i could atleast expand on my farming..

[dee01832]

Ok- Im new to your forums, however not new to Real Estate.
The last few years I have done a direct mailing to 3 towns in my area. Yes this mailing cost me almost 12K I have a prining company do it.
I can count on obtaining 7-9 listings per mailing. I do this 2X a year, and I offer a "special".
Although this fall, I may omit this due to the lack of buyers in my area.
The market here is declning, as with the rest of the country.
We are flooded with listings, and no buyers.
Sellers need to see the market has changed here dramaticly over the last year.

Hope this helps!

[lyndon136]

that is impressive.. Can you give an example of a special that you have offered?... Also if you only mail twice a year how do you decide what is important enough to put in your mailing.. im assuming you do a newsletter?

[dee01832]

I take some homes i have closed in the ast 6 months , with pictures, I include a referral from thses ppl in print. And i banner it with saved: _____
If my office sells in house commision is 3%-
Sometimes- Like this past one, is 20 year anniv, so i offered 500 off total commision-
At this time in the market- its a price driven, more than i have ever seen-

[Pam Gitta]

Direct mail is like parenting: to see positive results, you have to be consistent, and you have to be very, very patient. :)

Many of the ideas in this thread are excellent: newsletters in particular are expensive, but they give you the space you need to offer interesting, informative news to your prospects. That's the sort of stuff they want, and the sort they'll remember you for. (It's also what will keep you from being deemed "junk mail." If the first thing in your newsletter is the headline, "7 Remodeling jobs that won't add a penny to the value of your home!" it's going to take a prospect with nerves of titanium to throw that baby away without reading it.)

Judy mentioned the value of local information. I live in a small town that never makes the papers. So, when a new store is being built or a restaurant changes hands, I have to hear about it down at the grocery store. With all the networking you folks do, you're in a prime spot to get that news fast. Pass it on to your farm area, and they'll love you.

ibuyhomes brought up the importance of a great offer. Amen! Something like what Dee did ($500 off the commission on a sale) is just such a great offer. That will get peoples' attention. I think free babysitting for homeseekers could be another good one, if $500 is a little too rich for your blood.

[JohnHoward]

I only use postcards to mail to a neighborhood if I have just listed a property or have just sold a property. I use this to create neighborhood chatter of my activity and to promote my Internet marketing strategies. I have picked up two listings and a sale this year with it. I send out about 60 postcards. I produce them on publisher and e-mail them to a local print shop. Turn around for the print shop is about a day or two.