Why Real Estate Investors Use Direct Mail

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got a quick video on direct mail marketing for real estate investors…

Many investors will tell you that direct mail marketing is dead. That it doesn't work well, that there are better ways to get your message out there with higher response rates.

My answer to that? You're missing out if you think like that. Direct mail still has its selling points, yes, its not as sexy as some other marketing methods, but its still a great way to find quality leads for your real estate investments.

It may cost you $500 to $1,000 to send out 1,000 direct mail pieces, but 1 strong lead (which is 0.1% response rate, very unlikely to be that low), may pay for the marketing 10x.

Advantages of Direct Mail Campaigns

Great way to reach new potential customers
Highly Targeted – tailored to specific audience based on specific needs
Personalized – include names, emphasis on foreclosure, mortgage payments
Tangibility – something they can hold – depending how creative you can get
Familiarity – Depending on your audience (say older crowd), they still check physical mail, not internet
Multiple Formats/Customizable – Brochures, catalogs, magazines
Creating direct mail campaign not hard – Easy to design – Many samples online
Generate Traffic – Send people to a website with better conversions, add them to email lists, etc…
Measurability/Tracking – if using a specific call to action – track conversions and response rate
Proven Track Record – Direct mail has been going on for years, it works

Disadvantages of Direct Mail Marketing

Costs – Designing highly effective campaigns, or a company to distribute the mail
May be perceived as Junk/Spam mail
Response rates are usually pretty low – but it depends on the piece
Bad mailing lists – address errors, misspellings
Time sensitive promotions – delays may hurt the response
Hard to Test what does or does not work – can't make small adjustments and gain immediate results like internet
Not environmentally friendly – unless you use recycled envelopes/paper, etc…

Tip: We all check our mail, we all get spam, advertising, bills, so what entices us to open up something we've never seen before? Exactly that, something we've never seen before. Direct mail is versatile, explore creative ways to get your message out there. (Ex. I received one piece that looked like a paycheck “pay to the order of”, it got me to open it.”)

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.