They get hung up on the attractiveness and sometimes low cost of digital marketing. Social media, email, fancy websites, lead generation programs, pay per click, and Google retargeting all have their place.
I am not saying that these marketing strategies are not effective. I am not criticizing them in any way. In fact, I think a comprehensive marketing program should have many different ways to contact a prospect.
Direct marketing is often overlooked, even though it allows you to hit a huge segment of the market. There is a reason why direct mail has worked for years. It continues to work for the real estate investment industry. It has to do with the demographics of your ideal prospect.
For most REI’s, an ideal prospect has high equity, has lived in their house for a long time, and the house is run down. What demographic fits those criteria a high percentage of the time? Answer: Older people.
Take it one step further, many deals come from houses vacated due to people moving into retirement homes, downsizing, or the owner has died. They often don’t know what to do with the home.
Most older people are not digitally savvy. The older generation does not tend to be addicted to their cell phone like the rest of us. They’re not computer savvy. They value the written word on paper and read their mail. They value personalization and handwritten correspondence.
If you don’t use direct mail as one of your marketing strategies, there’s a good chance you will never reach that segment of the market. You will be leaving money on the table. You may do well with your digital marketing, but you’re still limiting your market reach.
Don’t make that mistake!