We asked CBG members what deal-finding tactic they’d most like to try next. The answer? Direct mail by a long shot. If you’re thinking about entering the direct mail game to grow your business, here are three things to keep in mind.
This may seem obvious, but then again, I’ve seen investors write home about their 40% response rate. The response rate is not the goal. A profitable deal is.
1,000 postcards with a response rate of 2% and two deals beats 1,000 letters with 200 calls and no deals.
Direct mail shouldn’t be the first tactic you try. It’s expensive, it’s time-consuming and without the support and processes to follow up on inquiries, driving for dollars might be a better bet.
If this isn’t your first rodeo, make sure your other marketing elements are in place. Namely, have a website that doesn’t look like spam. You might want to convert as many people with a single landing page. All your leads need to do is enter some information and click that big button. Simple, right? But you forgot about what your prospects want. They want to research your site to see if you’re trustworthy.
If you found their contact information via a purchased or a list of tax delinquencies, chances are someone else has found that information, too.
I try to tell the joke of you, your friend and the bear in as many business contexts as possible, so here it goes. You and a friend are out hiking in the woods one day. A bear bursts through the tree line and starts chasing you and your friend. Your objective is to outrun the bear, yes, but the more immediate objective is to outrun your friend.
How does this apply to direct mail? Think of what your competition is saying and then do the opposite. Everyone sees “We buy houses for cash!” advertisements. It might differentiate you to ask a question, such as, “Is your house holding you back?” Remember, you have to hold your prospects’ attention before you can make your case.
Next time, we’ll get into where to find contacts, what you can say, and how to test and scale.