The Ultimate Guide to Using Direct Mail Marketing to Grow Your Real Estate Business | Daily #24

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Last week, I received a car key in my mailbox.

The key looked different: It had no grooves on the side—just smooth.

Furthermore, the key was attached to a brightly colored postcard that proclaimed, “You’ve won!”

Did it have my attention?

Of course!

I had to continue reading, despite the fact that I knew this was just another piece of junk mail. Looking over the card, I learned that a local car dealership was giving away a free car to someone who would come down and test drive a car for the weekend. (Reading the fine print, I also learned that the odds of winning the car was 1/3,000,000, but the odds of winning a free cup of coffee was 2,999,999/3,000,000. I wonder which prize I won.)

So, why did the dealership send me this colorful postcard and key?

Simple: This is direct mail marketing, and it's used by millions of marketers all across the world to sell products—from cars and insurance to mortgages, electric fireplaces, and more. Across multiple industries, direct mail marketing is a proven technique for growing your business.

Today, we are going to dive deep into the topic of direct mail marketing and focus specifically on how you can use direct mail to get new leads, expand your brand, and grow your business. Welcome to the ultimate guide to direct mail marketing!

Direct Mail: What is it and How Does it Work?
Direct mail is mail sent to a targeted list of people with the assumption that a very small percentage will respond to the campaign. Chances are you receive a lot of direct mail every single day in your mailbox at home and just consider it “junk mail” and toss it in the trash (like the postcard with the key I mentioned above).

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 buying the product, making their campaign worth the expense. At its core, direct mail marketing is about one thing: playing the odds. Let me give you an example of what I mean.

Wholesaler Kevin is looking to find real estate properties he can get under contract for cheap. However, he knows that the MLS is drying up and all the good deals are being bid up too quickly, forcing him to look elsewhere for deals. So Kevin turns to direct mail marketing to find deals.

Kevin sends out 1,000 letters to a targeted audience, costing him $1,000.
Out of those 1,000 letters, 5% of the people call back Kevin (1,000 x 5% = 50 phone calls).
Of those 50 phone calls, Kevin filters out the duds, negotiates, and gets the contract on 2% of them (1 deal).
Kevin then sells the contract to a local house flipper for $5,000.
As you can see in the example above, it cost Kevin $1,000 upfront to fund his direct mail campaign but he was able to make $5,000 in revenue from that campaign, netting him a $4,000 profit.

Hopefully you can see the potential here. What if Kevin took that $4,000 profit and put it back into a direct mail campaign?

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