Using Direct Mail Lists to Reach Potential Home Buyers
By Lois K. Geller
Let's say you bought a property, fixed it up and now you want to sell it. Join the club.
In order to sell quickly and at the right price, you need to stand out and you do that by getting the attention of the right people: those who might buy your property, those who might refer buyers, and those who will talk (create buzz) about your property. You don't care about anyone else.
The perfect way to reach everyone in your audience is to write them a letter or send them a postcard or an email. You get their attention by offering an incentive for either touring the property or referring potential buyers. But how do you find these people?
Welcome to the beauty of mail lists, the least known and most misunderstood element of the direct mail mix.
* Next 37 17 investors only!
Why lists are important
Most direct mail experts, and I'm one of them, will tell you that the list is responsible for 40% of a campaign's success. The offer makes up another 40% and creative is the remaining 20%. (And yet all rookies spend about 90% of their time on the "creative.")
Use the wrong list - target the wrong people - and you will have a 100% failure rate. Yikes! It's like having the yarmulke concession in Saint Patrick's.
If you read my book, SOLD! Direct Marketing for the Real Estate Pro, you know that many real estate agents have told me they start by spending a lot of time putting together their offer and the creative (or copy) for their mailing - and then when it's ready to mail they figure out who they're going to mail to.
This is backwards. To generate the response you need, you first find out who you'll be mailing to. Then you can develop your communications around your audience.
You could mail to everyone in town, or every homeowner in a particular ZIP code, but that's expensive and wasteful and you still don't know if you're reaching your target groups.
That's why you need a mail list.
Compiled lists, Response lists
Each of the thousands of mailing lists available to rent falls into one of two main categories:
Compiled lists are names and addresses derived from other lists: telephone books, public records, car or voter registrations, members of associations, etc.
Response lists, on the other hand, are lists of people who have responded to a direct mail offer from a company other than yours.
Compiled lists cost less than response lists and they're ideal for reaching all the people in a specific neighborhood. The drawback is that the people aren't proven "responders" ... plus, lists like this tend to be out of date, or at least more out of date than response lists. Nonetheless, a compiled list may be your best bet for reaching your target audience.
Three steps to renting a list
One thing to note when renting lists: you're allowed to mail to those names one time only and, often, within a specified time "window." However, when people respond to your mailing, you can then add them to your own list and continue to mail them whenever you like.
Step 1: Determine your target audience. Before you rent a list, describe your best prospect. For example:
- The neighborhood in which your property is located - What types of people live there already? Is it a "working class" or "professional" neighborhood?
- Your prospects' household income - You don't want to target lower income levels if your property is in a higher end neighborhood
- Homeowners vs. renters - Homeowners may want to move "up;" renters may be looking for a starter home. Which prospect is right for you?
- The community - Is your property located near a university or within walking distance of downtown? Does it feature easy on/off highway access? Retirees might want to live right in town while a professional couple might want a location close to the highway.
- Recreational vehicle ownership - Boat ownership, for example, may be a key consideration if the property you're selling is waterfront property!
Step 2: Find a list broker. A list broker's job is to match up mailers (you) with list owners. (Don't rely on the lists you can get from your printer or mail house - these lists rarely give the information you need.) To find a broker in New England, do a Google search or consult these regional direct marketing associations:
- The Direct Marketing Association (DMA)
- The New England Direct Marketing Association
- The New England Mail Order Association
- The New Hampshire/Connecticut DMA group
Step 3: Tell the broker what you're looking for. Once you find a good broker, ask for list recommendations based on the criteria you established above. The broker will then give you a list card for each list. The list card tells you the number of names on the list plus lots of other information. Be sure to ask when each list was last updated.
Typically, it costs $75 to $125 per thousand names to rent a list. (You may have to shop around a bit to find a broker if you're looking for a list with fewer than 5,000 names.) In addition, you'll pay between $5 and $15 for "selections." Selections are how you narrow your list and include ZIP code, gender, marital status, homeowners vs. renters, car and/or boat owners, etc.
When developing your next postcard mailing or letter campaign, don't wait until the last minute to rent a list. Define your ideal prospect and work with a list broker to find the right list first; you'll see significantly improved response rates.
Lois K. Geller is the founder and president of Mason & Geller Direct, a full-service direct response agency, and the author of the new book, SOLD! Direct Marketing for the Real Estate Pro. She can be reached at 646-723-3230 or via her company's website at www.masongeller.com.
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