What is the Best Way to Experience Success Using a Direct Mail Postcard Campaign?
I am in the process of implementing a direct mail postcard campaign to expired listings. I have read every single post Barbara Todaro has written on her success using direct mail postcards. However, I wanted to know what types of success or failure others are having using direct mail postcards.
First, I'd like to share a story of a fellow agent who used direct mail postcards. For the purpose of this post, let's call this agent Jane.
Jane had been in the real estate business for two years. She was single and real estate was her sole support. Jane wasn't much for cold-calling expired listings or FSBOs. She wanted something that didn't require her calling people she didn't know. Jane lived in a neighborhood that attracted first-time home buyers and had a high turnover rate. She decided to implement a direct mail postcard campaign.
Jane didn't want to have to create the mailings. Instead, she chose a 4x6 recipe card program that would go out every month. Jane didn't even have to pick the recipe. She picked the series and they were mailed religiously every month to 500 homes in her neighborhood.
After 12 months and $4,000, Jane still had not received any business from her mailings. She seriously considered discontinuing but decided to give it another 6 months.
After 18 months and 9,000 mailed postcards, Jane got her first call to list a home in her neighborhood. The commission on that first listing wasn't even enough to cover the cost of the postcards after her broker took his share. But a week later, she got another call to list. By the end of that year, Jane had listed and sold 20 homes in her neighborhood.
Jane continues to mail postcards to this neighborhood, even though, she no longer lives there. During the economic downturn, the listings she received from these mailings were enough to sustain her. Last year, 65 percent of her business came from listings in this neighborhood.
I don't think Jane's success rate is typical. Most agents tell me their success rate with mailings is about 1 percent.
I am seeking advice from my fellow ActiveRain friends. Here are my questions:
- Have you had success using a direct mail postcard campaign? If so, what is your return on investment?
- Do you create your mailings or use a program like Jane's? If so, which program do you use?
- Do you market to a specific neighborhood, niche or price point?
- Share your best direct mail story.
I believe that the entire membership can benefit from this information. I'm sure we all want to know what is the best way to experience success using a direct mail postcard campaign?