Posted by Joe on June 14, 2006 at 10:38:10:
What qualifies as a lead? Anyone giving you a phone call? Anyone giving you a phone call that sounds somewhat motivated? Anyone giving you a phone call where you end up making them an offer?
I’ve sent very targeted direct mail … over 2000 post cards to homeowners in foreclosure. So far I’ve received maybe 1/2 a dozen phone calls. Of that, only 1 or 2 seem like “leads”. The first was a homeowner whose financials were upside down (owed more than it was worth). The second was a homeowner that had to sell in less than 2 months, but still wasn’t willing to budge too much from retail prices. But I will follow up with them after a few more weeks have passed and they are more motivated.
So, response rate is around 0.3% and lead rate is about 0.1%. I pay $0.39 per post card (glossy color post cards), so right now I’m at about $800 per lead.
Actually, when I spell it out like that, it’s kind of depressing that I haven’t gotten a deal yet, sheesh.