Finally! Proof that optimizing real estate marketing lead generation pays off

How do you grab people’s attention, arouse their interest and motivate them to take action? Here is a comprehensive list of different types of advertising media that commonly are used by direct marketing professionals. However, some have limitations and may fail to provide the ROI that savvy real estate investor wants.

1. Signs: Putting signs (commonly referred to as bandit signs) up all over the place may result in a bunch of calls – most, if not all, will come from tire-kickers rather than actual motivated sellers. This is a labor-intensive approach to marketing and you need to be prepared for the local ‘sign police’ to be tracking you down.
2. Classified Ads: Reach a limited and, in the case of newspapers, a rapidly- dwindling audience.
3. TV and Radio: Direct Marketing via TV or radio is usually in the form of a short commercial or a longer formatted infomercial where the viewer/listner is asked to take action. Can be cost prohibitive and requires working with professionals in each medium.
4. Flyers and Door knockers: This can be a great approach working motivated markets like pre-foreclosures, bankruptcies and FSBOs, but you need some amazing copy for closing sellers door-to-door. This also is a labor-intensive approach but a well crafted ad can produce measurable results in localized areas.  Providing good copy can make the difference between delivering 1,000 flyers vs. 10,000 to produce a good deal.  
5. Telemarketing: This is a method of direct marketing in which a sales person calls a prospect directly. As with door knocking, this can be a great approach to working motivated markets like pre-foreclosures, bankruptcies and FSBOs. However you need a good list that includes phone numbers and proven techniques for making phone outbound telemarketing calls to help avoid telemarketing’s negative perceptions. Telemarketing is a regulated field with heavy fines for abuses so it’s best to outsource telemarketing to reputable call centers. TIP: Using voice broadcasting to deliver a message via voice mail can be a greate strategy especially when used in conjunction with other marketing options, such as direct mail. 
6. Internet Marketing: This is a very effective category of marketing that would require another article to cover the details. To truly excel at online marketing would require some expertise with SEO, pay-per-click ads, squeeze pages, etc.. However ther are a number of Web sites on the market that will generate a good number of in-bound leads for free, or for a fee. These sites have brand names that attract buyers and sellers, and then distribute the leads to you. 
7. Direct Mail: The most common form of direct marketing is direct mail via the U.S. Postal Service. This method allows for very specialized campaigns to be accurately delivered to targeted lists via postcards and letters. This makes it a very cost effective method that can be reproduced as needed.

THE ADVANTAGES OF DIRECT MAIL MARKETING

The more you consider the benefits and level of effort required to implement each of the various forms of direct marketing listed above, the more likely it is that a properly executed postal campaign will emerge as your best option. Direct mail offers a number of benefits to the Real Estate Investor:

1. Targeting – More often the not, there is a list available for any unique subset of homeowners such as free and clear, foreclosures, pre-foreclosure, absentee landlords, etc.
2. Personalization – Direct marketing campaigns can be personalized with the targeted individuals name and/or situation.
3. Measurable Returns – Responses can be easily measured making it an efficient use of advertising dollars.
4. Measurable ROI – with measurable results it is easy to determine if a campaign is producing sales that exceed the cost of delivery.
5. Testing – By tracking response rates, direct marketing can be tested to find the best copy, market, offer, etc. prior to being rolled out to a larger market.
6. Less Competition – Not many new investors opt for direct mail. In fact, a large percent give up after a few hundred or thousand mailers without any follow-up. However, when it is done properly, direct mail drip campaigns can expedite entry into any niche real estate market and increase conversions.
7. Can Be Automated – copywriting, printing and mailing – Direct Mail Campaigns can be 100% outsourced, freeing the investor to concentrate on closing the best deals. 

MARKETING CONSIDERATIONS

While direct U.S. mail is an excellent way to reach the customers you want to reach, this medium is not without costs. Costs include postage, printing, and database list acquisition or development. Other “hidden costs” may include minimum requirements, annual contract fees, and funds lost to duds on the list you bought (It is very common for a list to contain 25% or more names and addresses that are duds). 

The fact is, it may not be very cost effective to handle your real estate marketing in-house. Business such as my own have risen to address the marketing concerns of the Real Estate Investor. Each investor should research their options and decide which marketing (or mix of marketing) will work best for their company and desired market; and then decide if they’re better off outsourcing lead generation so they can concentrate on closing the deals.

ABOUT THE AUTHOR
Gary Boomershine grew up in his family real estate business and is himself,  a 20-year veteran real estate investor and real estate marketing entrepreneur. He is the founder of real estate marketing leader SalesTeamLive and is the publisher of GaryBoomershine.com , a Web site and blog dedicated to delivering timely original news, strategies and tips to foster innovation and success among real estate investors who are struggling and thriving in today’s challenging markets.