In real estate, getting leads is every investor’s problem. Without a solid plan on how to get leads for your real estate investments you’ll find yourself losing money. This is why it’s important to understand what marketing strategies work and what doesn’t.
By knowing what works, you’ll save money and earn more money by converting leads into deals. We’re going to be looking at three effective passive marketing strategies for any real estate investor.
Bandit signs are a marketing tool that are often used by real estate agents to find new leads. They are poster-sized printed signs that are often seen on streets. Bandit signs are like billboards but smaller. The success of this marketing tool will depend on the strategic placing of each sign. These signs aim to catch the attention of passersby and create highly targeted leads. This is why bandit signs are considered a necessary component in every real estate advertising system. Although they are primitive compared to other kinds of marketing, they nonetheless generate real estate leads.
Bandit signs are relatively cheap but they are still gonna cost you. You’ll have to pay for the signs, the stands, the people who’ll put them up and the gas for driving around to put the signs up. Two hundred bandit signs will usually cost you a thousand dollars. With this in mind, how much will the cost per lead amount to? So, let’s say that you buy the 200 signs upfront for only $600. These will take up to 10 days to put them all up. If you’re paying someone $12 per hour for 8 hours a day for 10 days, that would be $960. The total investment for bandit signs would be $1,560. Depending on the location where you put the signs up, they’d last up to three months.
For the results, usually 200 signs will get about 115 calls within 30 days. In the 115 calls, there could be an average of 30 leads. These aren’t made up numbers. These are solid leads backed with documentation and accountability logs after years of being in this business. To compute for your cost per load, take the 30 into your $1,560 investment. Your cost per lead is $52.
- This kind of advertising will target people who are not active in social media, such as the older generation
- Will be visible especially when placed in a busy location
- Can be pricey
Online Paid Advertising
The second type of advertising is online paid advertising. With a lot of businesses embracing the internet as one of their main strategies, real estate is no exception.
There are a lot of different ways where you can advertise your real estate business online. The two biggest ones are Google Ads and Facebook Ads. Both offer their own unique benefits where you have to choose which one fits your needs more.
The big advantage that Google Ads offers is that when people are searching for something they are more likely to convert into a lead. However, the cost of using it varies a lot. It will depend on the area where you want to advertise as well as the keywords you are targeting.
Everyone knows Facebook, everyone uses it. This is why Facebook ads are such a powerful tool to advertise real estate. The big advantage Facebook Ads offers you is targeting. It’s gives you a lot of flexibility and customization in trying to target your ideal lead.
You can advertise to people based on where they live, what their interests are, and more. You can take advantage of the powerful customization they offer to find leads for your real estate investments.
- Effective to gather potential leads
- Will target people who utilizes the internet for information searches
- Can be very costly
Direct Mail Marketing
Direct mail marketing is another strategy real estate investors can use. Direct mail marketing will get to anyone who owns a mailbox. The key to direct mail marketing is to target the correct demographic. Sending mail to people who don’t want to do anything with your business will be a waste of your resources. A list of names with addresses can be bought. You can narrow down potential leads based on their income, credit limit, status, gender, geography and education.
Target marketing is recommended although it is more costly. Getting 5,000 leads for target marketing will cost up to $2,500. You buy the zip code for a cheaper price but 90% of those people won’t want anything to do with your service. You’d be wasting your mailers. When you do target marketing, you’ll be sending letters to people who can potentially be leads. Target mailing can be expensive, though, and results can be around 2.4%.
- Target mailing can focus on demographics for more leads
- Has low percentage of leads
- Is also costly
Each of these marketing strategies are a good way for any real estate investor to generate leads. They all offer their own benefits. You need to decide on which strategy you want to use first and master it before moving on to applying the others.
Watch for our next blog where we will discuss the perfect marketing strategy for beginner real estate investors.