Are you using the “spray and pray” strategy for your marketing?
That’s how I used to do it. I thought it was a strategy, but in actuality, it was a guessing game of ineffective marketing. (And I wasted a lot of time and money.)
Since then, I’ve come to understand how powerful focus can be.
What the heck am I talking about?!
I get questions all the time about how much mail to send…
So what I teach my students and clients is that you need to target your marketing campaigns to a few small zip codes or neighborhoods.
One investor I know uses this method in his farm area and is making a killing! (#winning)
He mails 4,000 pieces every 2 weeks. (Now in the market he’s in, he could very well mail 40,000—but he stays focused on a handful of zip codes.)
He gets an average 0.75% response rate… that’s less than 1%. (In my market, I typically get 2%-3%, BTW.)
Yes, his is a small response rate, but he has great buyers at the ready, and check out this math…
For every 1,000 mailers, he gets about 7.5 lead calls… 4K letters means about 28 calls…
And he averages 4 deals per month with a gross of $150k. (Again, in his market these are amazing wholesaling fees; the fees will likely be different depending on your market.)
Why does this strategy work so well?
Well, I’ve found that going deeper rather than wider is the key.
I wasted SO much money growing and mailing my lists to 15,000-20,000… but I realized I was spending too much money simply mailing to more addresses without a real strategy.
More does not equal better sometimes.
I wasn’t focusing on my best-performing lists like I should have been.
So, my advice: Mail to a small, better-performing list more often. (And when the leads call in: ANSWER THE PHONE!)
My fav lists:
- absentee owners
- high-equity owner occupants
Use the power of focused marketing to your advantage.
Remember: Go an inch wide and a mile deep.