Why am I able to receive 20% response rate from my marketing to sellers and others don't? Many investors especially new investors have a hard time bringing as many leads they need in order to get a deal. Typically on average I am seeing (as well as closing rate and target demographic list) it takes about 25-30 seller calls to get a deal.
So you will have to calculate based on your businesses goal of how many houses you are looking to acquire and how much money and time are you spending to get them. My business we try to improve our marketing campaigns as well as our closing ratios on the leads that we do get in to better our chances but on average we are dealing in that same number. The 25-30 Seller call to deal ratio means the amount of motivated sellers calling you willing to accept your creative or cash offer based on your terms. Its a numbers game. Sorry for getting a little off topic.
Our approach to getting a high response rate to get the most opportunities is basically focusing our marketing efforts to precise demographic and geographic targets and consistently hitting them over and over. Lots of investors will put all their money together and send out 1000's of mailers or post 100 bandit signs all over the state or put their marketing flyer's everywhere their is a free space. This to me will cause more work and get you less results. Trust me, I use to do that.
The key is selecting where you want to buy houses or where you end buyers want to buy houses and target specifically in that area ONLY. Go as deep as a specific neighborhood and focus your money and efforts there. Now instead of dealing with a farm area of 30,000 homes you can market to 1500 or 5,000. With it being more targeted now you will be able to hit them repetitively like 5-8 times which we do.
Action Steps:
- Research on where you want to invest in. Where are the places you like? Where are people looking to buy? Read about How to find real estate deals in areas that you like!
- Select a small area at first and really focus in on that area. Be that Area of the towns expert "Your East Forest Park Real Estate Expert! for all your real estate needs" Focus on a select number of houses and stick to it. "Be a big fish in a small pond"
- Create a marketing plan that you will be able to market 5-8 mail pieces, flyer's, call campaigns whatever so that you can be CONSISTENT with it. It's all about consistency. Your prospects may not be ready to sell at that time you sent marketing to them but they may be 2 months from now. Situations always changes. Always. So never assume that if you don't get a call that you wont in the future, be patient.
- Follow up. You may receive a good amount of leads and for some reason they didn't accept your offers. So put them into a follow up CRM or follow up database and follow up with them. You will be surprised on how many deals you will convert on the second try.
Anyone who tries these strategies and have any success with them please post them on the comments section for everyone to see. Also post any difficulties so we can be able to figure them out as a group. Good luck.
Till my next post.
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