Real Estate Leads – It’s All About Psychology, Baby
Here’s the dealio; real estate success = real estate leads. Plan and simple. Without leads, you don’t have business, and without business, you’re S-O-L my friends. So how do you market yourself, your service, and your business to ensure you get leads out the wazoo?
You’ve heard of the shotgun approach where you buy a list of zip codes and blast out mailing to everyone on the list. You target everyone at once with a mass communication that doesn’t speak to anyone specific, and then you cross your fingers and toes and talk to the Man upstairs in hopes of getting a silly amount of leads. Problem is, even with God on your side this is a crap shoot. Sure, you can get leads this way over time, but you’ll spend mad mad money in the process.
At the end of the day, this will probably give you more indigestion and sleepless nights that you need. So, how’s about taking a targeted approach?
Psychology 101: We respond most to people who listen to us and understand us. So, what does that tell you? Hello, McFly?! Tailor your list and cater your message to specific groups like soon-to-be divorcees, or dead people, or people behind on house payment, or people over leveraged. These lists aren’t hard to get, and they’re well worth a few dolla bills, y’all. Let me say it again – tailor your message; that’s the key. You’re recipients need to know that you understand what they’re going through, and they need to feel confident that you are the man (or woman) who can help alleviate their homeowner stress.
TIP: No self-respecting real estate investor send just one letter to his target motivated seller. Do that – and you’re wasting money. Be smart, Mr. Propeller Cap, send multiple letters to each recipient. This takes time money and discipline – but I’m here to tell you, multiple mailings work like a pimp on payday!
Once you get into the groove like Madonna (she’s become quite the MILF, huh?), you’ll get a feel for a typical response rate, you can track your success and you can test new mail messages versus old mail messages. This is critical! Split test everything. ITS EASY! Just create two different mail campaigns. Expect about 3%-5% response rate, and track how many direct mail pieces (for example) you sent out, how many bites you got as a result, how long it took for you to get responses, say of the week you get most responses, and how many deals you actually closed. Use those numbers as a standard starting point going forward as you tweak and hone your message.
So what have we learned here people? Unless you’re a socially inept delinquent who has no friends, you know that people want to feel heard, listened to and understood. Your approach to real estate investment marketing should be no different.
TIP: Want 100 Sure Fire Ways to Find Insanely Motivated Sellers….just put your info in the box below and and I’ll send you my list for free!
Test and hone your message, put yourself in the sellers’ shoes, don’t get all long and flowery – and talk directly to your targeted audience. I’d go all-in like Steve Danneman and bet that you’ll get a far better response and more qualified leads.
We’ll write more on this later, ‘gators.