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Why mailing expired listings is the cheapest advertising you can do

By
Real Estate Agent

 If you’ve heard of the Energizer Bunny, then you have seen the effectiveness of good corporate advertising. Here is the problem the average small business or agent has with this type of advertising. It costs a huge amount of money, and takes a long time to pay off. A lot of small businesses run ads that are like the Bunny Ads. It’s a trap they fall into. Here’s why.

 They run ads like that because that is what you are supposed to do. After all, those big companies are successful, right? Yes, maybe they are, but the average small business doesn’t have 6 months to a year, and $2 million dollars, to wait for customers to start coming in the door from their advertising. They need business from their advertising budget quick. The Bunny ads are somewhat effective, but this strategy works for Energizer, not you and me. We need something that pays off right away.

 What can you and I do that will pay off fast. Instead of marketing to everyone, we can target people doing business right now. Find the sellers and buyers that are doing a transaction right now, and can be easily converted to work with us. Where to look? How about first time home buyers, renters in certain complexes or areas? Or, FSBOs, Expired Listings, and Pre-Foreclosures. We can market to these people for much less than a big TV or direct mail advertising campaign.

 How much does it cost to mail 100 Expired Listings? $50 to $60. How much does it cost to advertise on TV, and maybe show our ad to 100 people selling their home? I don’t know exactly, but I can guarantee you it is more than $50. I’ve heard (although I may be incorrect) that is costs $50 to $75 to buy one TV ad on TV. If you run a lot of ads, it can get expensive fast. That is the reason I like direct mail and targeting Expired Listings. It’s inexpensive, you get a good return on your money, and most important you get that money in your pocket quickly.

  By the way, whenever I buy batteries, I always buy Duracell. I thought about and here’s why I think that I do. First, they are the batteries that I’ve seen for sale most of the time. Also, my parents always bought Duracells, which caused me to buy them as well. I think the other thing is that I never believed the Energizer Gambit. The fact that a bunny on TV can keep on jumping around, does not mean they are great batteries. The ad simple was not very believable. There is a huge marketing lesson there. But, that’s for another day.

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Comments (1)

Sam Miller
RE/MAX Stars Realty - Howard, OH
Knox County Ohio Real Estate Specialist

Ben - Mailing and contacting expired listings generates business and generally these clients have become more motivated and a bit more realistic than when they first went on the market.

Feb 08, 2010 02:34 AM