Real Estate Marketing Strategies
History Shows Direct Mail Works!!
Why Direct Mail Works
What do virtually all Top-Producing Real Estate Agents have in common?They use Direct Mail to generate their business. Ask the top salespeople in your office, they’ll tell you they use real estate postcards, real estate calendars or real estate newsletters to market themselves. It’s no secret, and you can use Direct Mail to build your business too.
Advertising is Critical to Your Success
Like any successful company, your business depends on 1 thing – getting customers. The simple truth is that no matter how good your service is, you won’t get someone’s business if they don’t know you exist.
You need to advertise your services, let people know who you are and that you’re the one to call for their Real Estate needs. Advertising with ReaMark Real Estate Marketing Tools can be your vehicle to get your name out there and get the listings and sales to build your business.
Principles Behind Direct Mail
62% of all Sellers in Real Estate use the 1st agent they call. Your goal is to be that 1st agent. By sending clients’ and prospects’ Real Estate Postcards, Newsletters, Calendars, etc. you keep your information in front of them for when they’re ready to buy or sell. Here are the simple principles that make direct mail successful for so many agents:
1. Repetition is Key
Hands down the single most important factor in Direct Mail and most other marketing plans is repetition. For example: What if I told you ReaMark can save you up to 30% on your Real Estate Marketing Products over other companies. Will you remember that next month or even tomorrow? Now what if I reminded you that every month for the next year. You’d probably catch on right?
Statistics show that an average of 8% of all homeowners move every year…but not all 8% will move at the exact same time. Your targeted audience can be divided into 3 categories:
b. Those that will need your services in the future
c. Those that don’t need your services
Repeat mailings establish your credibility. Each mailing makes you more familiar to your prospects, which helps to create a level of trust. Just as you are more likely to buy car insurance from a company you’ve heard of rather than from one you haven’t, your clients will be the same. A house is a huge investment for most, and people are more likely to trust you with it when they realize that your business isn’t a fly-by-night operation.
2. Target Your Audience
There are three types of lists that you should choose from. (A minimum of 300 total)
1. Your previous clients, friend’s family, etc. Basically anyone who knows you or at least recognize your marketing materials. This list will outperform a farm list 10 – 1. This marketing will generate referrals or listings.
2. A Farm lists. It is key that you are selecting a farm area where:
a. There is no dominate realtor or real estate company (75% or more of activity)
b. A farm area with a decent amount of turnover each year (5% or higher)
c. A farm area that you live in or are close by where you can advertise that you’re not only an agent but also a Neighbor.
3. A Combination of both Farm and Personal lists. We highly recommend that if you decide to just farm an area that you always include your personal list.
Below is an estimated budget to mail monthly or at least every other month to your target lists. The totals may vary based upon your final numbers, Standard or Jumbo size and frequency plan). Unlike a lot of other forms of advertising, you can target your audience with Direct Mail. Think about how many times you’ve seen ads on TV or in magazines for products that you would never buy because they are for men and you’re a woman or vice versa. With Direct Mail, you choose who sees your ads.
By selecting a residential neighborhood of homeowners, or getting a list of closings from a title company, you are able to market strictly to people who buy homes. You don’t have to waste money on advertising to people that won’t buy a home, because your audience are already homeowners. Or, if you’re targeting first-time homebuyers you can mail strictly to specific apartment complexes.
3. Cost Efficiency
Direct Mail is the most cost-effective offline marketing medium to keep in touch with past clients and get new clients. It’s true. ReaMark can print and mail your existing and potential clients a postcard for as little as 50¢ each! Think about the thousands of dollars you could spend on other mediums such as newspaper/phonebook ads, T.V. commercials, bus stop ads, etc. None of these can give you the repeated market presence to your targeted audience that you need for as little cost.
Example Cost for 300 Standard Size Color Postcards with Our 6-Postcard Kit.
Also, take a look at our special offers to see how you can save even more on your marketing!
How to Farm Successfully with ReaMark Postcards
On average, 8% per year of residential homes turn over in any given neighborhood. You should always check your farm area for this statistic. Look at all homes sold in the past year and divide by the total number of homes in the farm area. For example if 40 homes were sold out of a possible 500. That would equal 40/500 = 8%.
It takes 6-8 months before a farm area begins producing results. So be patient and continue to mail!
Calculate your average commission per sale. If you sold 4 homes last year on your own @ 6% commission and 12 homes with co-op (MLS) @ 3% commission, your average commission per listing would be:
b. 12 homes sold @ 3% = 36%. Total = 16 total homes sold @ 60% commission or 60% divided by 16 homes equals an average of 3.75% commission per listing.
"If you make just one sale. It will pay for your entire year of mailing plus some profit"
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