What works for one direct mail marketer might not work for another. The rate of return will vary depending on factors like: What if only 1% of people call about your mailing piece? The numbers look very different. If you can get those numbers to work, you can keep earning money.īut there are four metrics to keep in mind:įor a direct mail marketer to succeed, they need to master those metrics. Direct mail marketing is scalable, which means the more you put in, the more you get out. Kevin now turned that $4,000 into $20,000 using direct mail marketing and could keep going to earn even more. Kevin then sells the contracts to local house flippers for $5,000 profit on EACH, for revenue of $20,000!.Of those 200 phone calls, Kevin filters out the duds, negotiates, and gets the contract on 2% of them (4 deals).Out of those 4,000 postcards, 5% of the people call back Kevin (4,000 x 5% = 200 phone calls).Kevin sends out 4,000 more direct mail postcards to a targeted audience, costing him $4,000.What if he took that profit and put it back into another direct mail campaign? Kevin netted a $4,000 profit with direct mail.
Kevin then sells the contract to a local house flipper for $5,000.Of those 50 phone calls, Kevin filters out the duds, negotiates, and gets the contract on 2% of them (1 deal).Out of those 1,000 postcards, 5% of the people call back Kevin (1,000 x 5% = 50 phone calls).Kevin sends out 1,000 real estate postcards to a targeted audience for $1,000.However, the MLS is drying up and good deals are being bid up quickly, forcing him to look elsewhere. Wholesaler Kevin is looking to find real estate properties he can get under contract for cheap. At its core, direct mail marketing is about playing the odds. Have you ever wondered why they send this junk mail? A small percentage will end up responding to the mail, and a small percentage of that percentage will end up as buyers, making their campaign worth the expense. Chances are you receive a lot of direct mail every day in your mailbox at home and just consider it “junk mail,” tossing it in the trash. What is real estate direct mail and how does it work?ĭirect mail is mail sent to a targeted list of people with the assumption that a percentage will respond to the campaign.
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