Why Direct Mail is Effective in Real Estate Marketing
Direct mail may seem like an archaic marketing practice in a digital age saturated with targeted Facebook ads, drip email campaigns, and social media, but if you aren’t using it you may be missing out on significant returns.
Direct mail is not only here to stay, it’s thriving. According to the USPS, direct mail generated $65 billion in revenue in 2021 alone and even Google employs direct mail to promote some of its business marketing services.
Sending potential clients physical mail may be an old method, but it has been tried and tested. Combine this with the latest automation and data scraping technology and you get a potent marketing tool with a high response rate and high ROI.
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Direct Mail Has High Response Rates and High ROI
Every business decision you make in real estate should be guided by return on investment (ROI). This is where direct mail shines. Research shows that direct mail campaigns outperform most digital marketing channels in both response rate and ROI.
Analysis from the Data & Marketing Association shows that direct mail yielded an average of 9% response rate compared to an average of 1% for all digital channels combined. The fact is that our digital inboxes are flooded with dozens of emails throughout the day. It’s very easy to simply delete them or send them to the spam folder.
On the other hand, our physical mailboxes can only hold so much and the fear of discarding an important bank statement, bill, or amazon delivery, makes us more discerning. Therefore, prospects are much more likely to see direct mail and interact with your brand.
There are only two digital marketing channels that boast a higher ROI than direct mail—email marketing and social media marketing. However, consider that this higher ROI is likely a consequence of employing these channels on a national level. Direct mail allows you to send more targeted, personal ads when you’re working in a local real estate market.
How to Market to Motivated Sellers with Direct Mail
The key to marketing to motivated sellers with direct mail is identifying patterns. For example, the National Association of Realtors found three main reasons people wanted to sell their homes in 2019:
- 18% — Wanting to be closer to friends and family
- 17% — Wanting more space
- 11% — Neighborhood became less desirable
Financial distress and sudden life events also correlate very highly with motivated sellers that are willing to sell their properties for less than market value. Reasons may include divorce, foreclosure, property tax increases, physically distressed properties, etc.
Related: PropStream Review: Software That Finds Deals for Real Estate Investors
These are the individuals who you want to target with direct mail. There are myriad cumbersome ways to find these individuals, but driving around the neighborhood looking for distressed properties is inefficient. Furthermore, the easy, well-trodden methods for finding motivated sellers will be saturated.
Fortunately, there are companies like Print Genie that automate this process for you.
Print Genie Review: The Future of Direct Mail Today
Print Genie allows you to narrow your search based on specific variables. For example, you could target owners in financial distress by searching for properties that have recently had their water shut off or are tax delinquent. Here are some other examples of search criteria:
- High equity
- Mortgage default
- Absentee owner
- Affidavit of death
- Divorce
You can search for these criteria in your state, county, or zip. You can even choose multiple locations. Print Genie will then curate a list of addresses, phone numbers, and emails.
Once you have your list you can use their “Direct Mail Builder” to design handwritten postcards or letters from scratch using drag and drop or choose from 100’s of pre-made options. From there, Print Genie will send your direct mail and you can accurately and easily track performance from their platform.
Automated Direct Mail
Automation is where the future meets the past when it comes to direct mail. Automation platforms like Print Genie allow real estate entrepreneurs to circumvent the outdated manual process that traditional direct mail once required.
Gone are the days of manually importing PDFs and CSV files, loading the printer, sorting, labeling, and stuffing envelopes. You can use automated direct mail to plan and deliver mail campaigns, collect details, personalize messages, mail in bulk, track, and report.
Perhaps the most powerful automated direct mail tool is the ability to test and analyze results with ease. You can measure campaign performance and recalibrate your strategy for future marketing campaigns.
Handwritten Direct Mail Letters
Handwritten direct mail letters have an 80% open rate. The average email open rate for the real estate industry is only 26%. While that’s an astonishing statistic, who wants to handwrite thousands of personalized direct mail letters?
Neutral direct mail letters allow you have more control over the individual offers you send and provide the opportunity to build rapport with the seller. However, they typically cost more than postcards and more time is spent communicating with sellers.
Fortunately, companies like Yellow Letter HQ allow you to design personalized, handwritten letters and take care of the rest.
Handwritten Direct Mail Postcards
Postcards are generally more affordable than neutral direct mail letters and thus lend themselves to higher volume. Furthermore, postcards are very eye-catching because they are not sealed in an envelope. The prospect has no choice but to look at them.
The trick with postcards is to capture attention right away with good ad copy and graphic design.
Real Estate Mailers Cost
The cost of direct mail depends on the number of mailings, postage, personalization, graphic design, copy, and type of collateral. Some direct mail real estate companies focus on design and copywriting, while others include mailing list automation and data tools.
Due to the number of variables, a single piece of direct mail can range from $0.30 to over $10. If you are sending out 1,000 postcards, the cost can quickly add up. However, if a $1,500 direct mail campaign produces $150,000 in profits, it’s a win.
Whether your campaign budget is $500 or $1,500, platforms like Print Genie allow you to achieve a higher ROI with less work and in less time.
Real Estate Direct Mail FAQ’s
What is Direct Mail in Real Estate?
If you believe direct mail to be outdated, you aren’t alone. Many people view it as “old school” marketing and dismiss it outright as being wasteful of their resources. Yet when used effectively and combined with high-converting websites, real estate direct mail can be an extremely powerful lead generation strategy.
What Is Direct Mail in Real Estate? Direct mail marketing refers to sending physical letters or postcards directly to prospective prospects in order to connect with prospective home buyers and sellers as well as keep in contact when their needs change. Savvy real estate agents, investors and marketers have employed this channel for years now in order to find motivated seller leads, connect with clients and close deals successfully.
With the right technology and strategy in place, using direct mail for real estate marketing has never been simpler. Thanks to automated lead generation systems, creating and sending personalized direct mail campaigns at scale in minutes is now possible.
Success with real estate direct mail campaigns relies heavily on targeting the appropriate audience with an urgent message that drives action from prospective sellers. Doing this will encourage them to contact you more frequently for advice about buying their property before someone else does, thus increasing the chance that they contact you for assistance.
Does Direct Mail Marketing Work?
Direct mail marketing refers to sending physical letters or postcards directly to prospective customers and clients. Some companies use direct mail as a form of lead generation while others may use it as a strategy to regain former clients who may have stopped purchasing from them for some time. Its effectiveness depends on factors like product or service being advertised; quality and size of mailing; as well as how well it’s tailored toward market requirements.
Small businesses using direct mail typically target their marketing towards certain demographic groups. This allows them to avoid spending both time and money on campaigns that won’t reach their desired audience, making the campaign more efficient. Market segmentation allows this by breaking up the overall market into subsets based on criteria such as age, sex, ethnicity or salary range.
Direct mail marketing can be more successful than other forms of advertising because it often elicits an emotional response in its recipients. For instance, a real estate wholesaler might send a letter that includes an image of an overgrown garden to create an immediate sense of urgency and encourage prospects to contact them immediately.
Direct mail can also be an effective way to highlight unique selling points by adding personal touches such as handwritten notes or signatures to mailings, or offering special discounts or coupons that entice prospects to keep and share the mailing with their network of contacts.
What Type of Prospecting is Direct Mail in Real Estate?
Real estate direct mail can be an effective way of targeting prospective buyers and sellers within an area or neighborhood as well as staying connected with clients.
USPS estimates that people typically spend 30 minutes reading their daily mail, so consistency in real estate direct mail campaigns is key for building trust with prospects and strengthening brands.
From monthly, quarterly or seasonal city and community digests to seasonal newsletters – sending high-quality publications can help establish credibility with leads while strengthening brands.
Submitting direct mail to absentee homeowners can also be effective; this strategy includes investors, landlords and people going through probate proceedings who own real estate but don’t live there themselves. These people may be highly motivated to sell quickly and may make for excellent client leads.
Direct mail can also be an effective way to reach out to expired listings, although you should take care when targeting. For instance, it would be more efficient if your mailing target included properties in pre-foreclosure or those that possess high equity levels – thus using list stacking more effectively rather than sending letters out mass mailings targeting all expired properties on the market for at least 12 months.
Real estate prospects do not all share similar needs, so to cater to each group appropriately it is necessary to create tailored direct mail pieces tailored specifically towards them. If targeting landlords as potential prospects then demonstrating your ability to evict tenants and increase property values could be particularly compelling.
Is Direct Mail Effective for Realtors?
Who hasn’t experienced the frustration and money loss caused by an unsuccessful real estate direct mail campaign? Regardless of whether you are new or experienced real estate agent, direct marketing should form part of an overall multichannel lead capture system which also includes your website and social media.
Content is key when it comes to direct mail for realtors. Your marketing materials must communicate that you are an authority in the local area in which you work, with an impressive knowledge and insight base that sets you apart from competitors. Include this type of data in your mailings as a demonstration that your commitment to placing clients first helps build trust between yourself and clients alike.
Timing of direct mail campaigns is also of great significance. Top agents often send out newsletters or publications monthly, supplemented with postcards that reinforce their messaging – this ensures they remain at the top of mind with prospective leads, which is essential for their business growth.
Finally, it’s key that your direct marketing efforts align with your real estate business model. That means not mailing to everyone in your market but instead narrowing it down to those most likely to sell. A list broker or software that tracks consumer behavior online and creates custom mailing lists could help with this effort – this way you could also target absentee owners, pre-foreclosures and those in probate with targeted mailings.
Should I Try Real Estate Direct Mail Marketing?
Should I Engage in Real Estate Direct Mail Marketing? Real estate wholesaling can be an extremely profitable venture for investors, agents and brokers alike – while there are multiple methods of lead generation available, direct mail can be an efficient and scalable tool in this regard.
Direct mail offers recipients a more personal experience, giving them a sense of appreciation that someone took time and care in addressing and stamping an envelope for them personally. That can create powerful connections with potential clients and leave an impactful imprint in their subconscious minds, according to the Small Business Administration.
Real estate marketers utilize direct mail as another method for demonstrating their local market expertise. Buyers and sellers both value partnering with someone who knows the area well – this can make all the difference when searching for homes or investment properties.
Direct mail can also be an effective way to demonstrate how many and various properties have been sold in a particular area, providing potential home sellers with evidence that your services have experience selling properties at or above market value.
Timing is everything when it comes to real estate wholesaling; seasonal trends in the housing market must be identified to best approach potential sellers at that particular moment in time.
Do Real Estate Wholesaling Postcards Generate Leads?
Direct mail marketing is an effective and cost-efficient way to generate real estate wholesaling leads for new investors who may lack connections or experience. Direct mailing allows your message to reach potential sellers who might be considering selling their home quickly.
Real estate wholesaling postcards that work are those with a simple design that clearly communicates a message to the recipient. Additionally, eye-catching designs with an easy call to action should stand out amongst competition and establish your business as the go-to resource for local market data and testimonials.
Many wholesalers employ yellow letters and postcards as part of their strategy for reaching prospective sellers. Using both forms allows investors to reach more homeowners more quickly while split testing (sending different pieces of mail to the same list) has revealed that postcards tend to outperform yellow letters when it comes to creating leads likely to sell their property more quickly.
Real estate wholesaling requires patience. It may take several hundred postcards sent out before prospects actually contact you about their property and it could take months before they decide whether they wish to sell it or not. To stay on track with your wholesale real estate strategy and achieve success, it’s essential that a realistic timeline and budget be established for marketing efforts.
About Author
The South Texas Wholesaler
JR Medrano is a seasoned real estate investor and the founder of WholesalingHousesInfo.com. With a passion for helping aspiring investors navigate the complex world of real estate, JR shares his extensive knowledge and experience in wholesaling houses through comprehensive guides, expert tips, and real-life success stories. Known for his practical approach and dedication to empowering others, JR aims to demystify the wholesaling process and provide valuable insights for both beginners and seasoned professionals. When he's not busy analyzing deals or mentoring others, JR enjoys exploring new markets and staying ahead of industry trends. Follow his journey and gain actionable advice at WholesalingHousesInfo.com.