Effective Marketing Strategies for Real Estate Professionals

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The Most Effective Marketing Strategies

Having been involved in real estate investing for a few years now, I've become very familiar with various effective marketing strategies. And along the way, I also found out which methods generated leads, and which ones didn't.

One thing to note is that everyone will experience different results with their respective marketing campaign. Two different people in the same market could be doing the same exact thing and get very different results and two different individuals, in two different markets can get similar results. That's just the nature of the beast.

But there is a secret to this; there are no secret to good marketing strategies! You have to try each strategy in your particular market to find out which one works for you. And when I say try, I mean TRY it.

For example, don't send out 5,000 letters to a mailing list that you've never tried. That defies all common sense. In that example, I would send out 500 letters and see what the results are before continuing any further. I highly recommend that you apply this methodology across all the strategies below until you find the one that works better for you.

The following are the top 6 real estate marketing strategies in no specific order of effectiveness and quality of leads:

1. Apparel/Human Advertising
2. Direct Mail
3. Cold Calling
4. Bandit Signs
5. Newspaper
6. Web Site
7. Business Cards

1. Apparel/Human Advertising

What "apparel/human advertising" is. I define it as "wearing your business," meaning that you display and promote your services on your apparel and clothing. Simply put on a shirt that markets my services whenever you go out -- to the mall, grocery store, post office, doctor's office, etc. -- and people come up to me to talk about real estate and their specific situation. It will surprise you how many people will approach you.

And the quality of leads is also high. You know why? Because people instantly and clearly know that you are a real estate investor if you are wearing an "I BUY HOUSES" T-Shirt and will only approach you if they are serious.

Pros and Cons:

-Most inexpensive method
-Instant, direct way of telling people what you do; face to face contact
-Only works if you wear the apparel
-Only works where you are

2. Direct Mail

There are several ways to employ a direct mail campaign. I've attended a few seminars run by real estate "gurus", and each one will swear by their own program.

I've ran marketing campaigns using postcards, handwritten letters , professional letters, and even USPS priority mail. Out of all the campaigns, handwritten letters generated the most leads. On a good campaign, I received 25% response, which is astronomical. Don't expect this high of a response rate every time. The average response rate hovers between 2% and 10%.

Pros and Cons:

-Direct mail isn't cheap. It is the most expensive strategy.
-You must choose your mailing list wisely and get it from a credible source
-Depending on the list, you will receive letters that could not be delivered
-Most homeowners will respond only after multiple mailings (experts say 7 contacts is the magic number).

3. Cold Calling

How many people can truly say that cold calling strangers is something that excites them? Probably not many, because most people inherently avoid unfamiliar territory. It's time to get past that fear and get out of that mindset, because cold calling is by far one of the most effective marketing strategies out there, especially if you are going after the preforeclosure market.

First, you need to get a list of individuals to call. If you are marketing to preforeclosures, there are several services that will provide phone numbers of homeowners facing foreclosure. Second, you need to practice your call script. Know what you want to say and how to respond to objections. And practice this over and over until it is second nature--and then practice once more. You get the point.

Being able to respond intelligently to the homeowner's concerns will build credibility and rapport. Those are the two most important things to construct during a cold call. Remember, you are a stranger who they know nothing about.

Thirdly, be able to prescreen each caller efficiently and effectively. Gain a true understanding of their situation, and obtain enough information to analyze the property to see if it fits your criteria. And finally, if the property meets your criteria, be able to close, whether it means getting an appointment to view the property or actually agree to sales terms.

Pros and Cons:

-Very effective - when you get in contact with homeowner
-Targeted to only those you want to market to
-Easy way to build rapport with homeowner due to personal contact
-Calling strangers asking to buy their house is not on the top of most people's list
-Can be time consuming and can only market to people you actually talk to

4. Bandit Signs

Marketing strategies include Bandit signs and yard signs. If you're not familiar, bandit signs are those PVC signs you might see plastered around town, reading "I Buy Houses, Any Condition, Any Price." They are usually attached to wooden posts or put in the ground close to busy intersections. Before you go putting these signs up, check with your city's rules and regulations because bandit signs are illegal in many cities. You can be fined heavily if caught.

The effectiveness of bandit signs is up for debate. A few years ago, I would have said that bandit signs worked great. But now they are everywhere and commonplace, people might be numb to them. Nevertheless, if you are the only sign posted, people will notice. Bandit signs are relatively inexpensive, roughly $2/sign, and you can hire people to post them. But you will need to put the signs up every 2-4 weeks, depending on how fast the "sign police" in your market do their clean sweep of the area.

Pros and Cons:

-Inexpensive strategy
-Can reach a broad audience if you want
-Not targeted; "shotgun" approach
-May be illegal in your city
-Frowned-upon by some individuals as "eyesores"

5. Newspaper/Phone Book Ads

Like all service providers, placing an advertisement in the newspaper is always one of the marketing strategies. But let me stop you here. This type of marketing is been by far the least effective method. It is expensive, sometimes prohibitively costly depending on your market, and is not targeted. Sure, it can reach a broad audience, but is not worth the cost of the ad. And like all other ads, you will be clumped together with all other companies that provide similar services. So it's hard for you to stand out, relative to the other marketing strategies already covered.

Pros and Cons:

-Can reach a broad audience
-Very costly
-Not targeted
-Doesn't generate quality leads (for real estate investor purposes)

6. Web Site

By far, now adays the best of the marketing strategies in your busines is using a website . While a website lets you put information about your company and products where it can be found by millions of people, it's not the answer to every marketing problem.

A website for your business is very important. Aim for a crisp, clean design that emphasises your professionalism and skill. Give your potential clients as much information as you think they'll need. Remember, this is most likely going to be your first point of contact with a potential client, and could determine right away whether or not the contract goes to your company.

Potential customers aren't going to find your web site unless you tell them about it and give them a reason to want to visit the page. In other words, you have to market the Web site .

7. Business Cards

If you don’t have business cards then you are not in business. That is as simple as I can put it. As one of the marketing strategies, you should have at least 100 cards on your person at all times. Many businesses today offer business card bulletin boards where you can place your card. You can put in places like supermarkets, restaurant tables, mall and shopping centers, include them with your bills, REIA's and networking meetings, etc.

I hope that you have a better understanding of what you want to employ in your business. But remember to test multiple marketing strategies in your market to see what gets you the best results. This is the only way that you will find what works in your market. Go out there and make it happen!

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