Real Estate Articles

Does ‘Yellow Letter’ Marketing Really Work?

By on June 14, 2012

Is Yellow Letter marketing worth the investment or just another marketing trap?

One of the most common marketing questions new real estate investors have is about ‘Yellow Letter’ direct mail campaigns. Many are interested in trying in because they have heard others have been successful at it but is it really the yellow note paper that closes deals or something else?

The premise of ‘yellow letter’ mailers is a hand written and addressed note on yellow note paper. So does it really work for real estate investing and urging sellers to call in and turn over their homes at big discounts?

Some investors have seen incredible results from this type of marketing. Even with a few dozen letters some real estate investing businesses have seen amazingly high response rates and closing ratios for capturing bargains on distressed properties. Others of course may not have realized much in the way of results at all. Why the disparity?

Yes, the yellow paper may help you stand out and perhaps in some cases encourage more recipients to read your message. On the other hand some recipients may find it a huge turn off and consider it unprofessional, like a sloppy “we buy houses cash” sign on a rusty old station wagon.

The marketing strategy of focusing on a more personal tone and standing out is a smart one which has proven very successful. However, this doesn’t mean you have to use yellow paper by any means, nor have to hand address hundreds of envelopes. This is especially important to recognize when in reality in normally requires thousands of direct mail letters to be sent on a regular basis in order to reap significant and consistent results.

It is also important to point out that how responses are handled is just as important as the mail piece sent out. It doesn’t matter how many people call in if the calls are not handled well or with rapid responses. Solo real estate investors may find it difficult to keep up by themselves, which makes outsourcing a smart move as well as utilizing toll free numbers for testing and access to online call details and email notifications of voicemails.

Lastly, before you contemplate launching any direct mail campaign take a moment to consider who your prospects are and what type of mailer they will really respond best too.