ECONOMIC INCENTIVES AS MARKETING

[BandB CONTRACTING]

Hello everyone

I have read somewhere here on Reiclub.com (i think) that doing postcards and writing "CALL TO RECEIVE YOUR $20 GIFT CERTIFICATE FROM WAL-MART" on them makes the phones ring.  

Putting a pen with your name in the envelope makes the homeowners curious and wanting to open the evelope.

Is anyone having success with any of these two techniques?

Any ideas on what else grabs the homeowner's attention?


Thanks everyone
Dan

[Bettysue]

BandB:  Yes it was on this site.  I too read the Wal-Mart thing.  I was working on getting quotes for the pen thing.  

I am curious too about the success rate

[BandB CONTRACTING]

Do you remember where the posting was on this site?

[TNinvestor]

The gift card thing was removed by the moderators....it's no longer available.

[Lady Bird-dog]

I just started sending gift cards. I'll post if I have any success

[aznewbie]

Lady Bird dog, I hope you meant you sent post cards telling them to call to get the gift card.

Other incentives that might work, Gift certificates for various business like packing/moving comapnies or maybe to nail/beauty salons/day spas for the women or places men like for the men. Get creative!

Or something I thought of doing instead of offering everyone that calls a free $20 Gift card. Tell them they will get a package type thing worth $xxx to various palces like walmart, target, home depot or other companies that will help them move out. (This also might help them not have an excuse why they haven't left when they were supposed to)
These are for when you close on the deal, not just because they called.
So if you give them a $500 gift pack it won't hurt so much cause (hopefully) you'll be making a lot more than that.

Anyone else have any creative ideas?

[TNinvestor]

The gift cards have worked very well for me. They serve two purposes.
1. It gets them to call .... that's the first objective

2. It gets me in their home........the second objective

I never mail them the card. When they are on the phone I say something like
"Mr prospect, should I come by with your gift card tomorrow evening....or is Satuday mid morning better?"  That's called an either/or close.

and bingo....I'm in their house talking to them face to face.  From your phone conversation you pretty well know how you want proceed with them.

[kjb1891]

Under what circumstances do you give them a gift card? When your offer is accepted and a contract is signed?

[TNinvestor]

I give them the gift card if they call me. I thought that's what I indicated in the post.

On the front of every postcard or letter it says   FREE $20 WAL*MART GIFT CARD
or lowes, K-Mart, Home Depot   each mailing has a different one...I use them as a tracking device.  I know which mailing (1st, 2nd, 3rd,etc) they are responding to.

[kjb1891]

What would you estimate was the change in response rate from when you didn't use the gift cards to when you did use them?

I saw on another RE forum another investor had the idea of sending letters or postcards by UPS or Fed-Ex. That way it's more likely the owner is opening and reading what you sent, and they take what you sent more seriously. It's a bit more expensive that way though.

[TNinvestor]

I have used Gift Cards from the time I started.....so I have no way to compair the response. I have a background is sales and marketing and from that experience I know people find it hard to resist something free.  They think "all I have to do is call to get it" and that is true. Everyone who calls gets one. But....it's up to my skills when they do call to make something happen. That's where sales skills come into play.
Folks in foreclosure get all kinds of official looking letter and cards.....most go right in the trash. Mine are nothing more than big neon yellow post cards with the gift offer on the front and how to get it in the text on the back. They have to read it to find out how to get the card ( the first objective is to get them to read your mailings). Obviously the second objective is to get them to call you. The third objective is to be in their home having a cup of coffee at their kitvhen table.  The gift cards accomplish that for me.

[kjb1891]

I don't deal with foreclosures unfortunately. There is too much competition in my town for foreclosures. It seems every investor in town markets to them. I send postcards out to "targted" home owners dealing with delinquent taxes, divorce, vacants, ugly houses, judgments, probate, absentee owned, expired MLS listings, and properties owned in a living trust.

I've found some good ideas to get more calls though. Between your gift card idea, putting a pen with my business logo and number in an envelope with the postcards, and  possiblly sending postcards in UPS or Fed-Ex packages all seem reasonable.

[TNinvestor]

Don't let competition scare you..............it just means there's money to be made. As with most areas in RE, 20% of the people do 80% of the business. You just have to let your marketing and sales skills separate you from the pack. These are learned skills...no one is born with them.

[Kawika_CA]

The gift card idea is great! One caution for those not totally familiar with CA law. See CC1695 for guidance for giving the owner in foreclosure anything before closing. For properties not in foreclosure this is a great idea to get into their house.

TN, what are the dimensions of your large postcards? I'm sending oversized postcards which is just a 11" x 17" 3 up. It's great because I can print 3 different messages to the same property all at once and file them in my follow-up folder for the sequential mailing. By the time I'm ready to send the 4th I usually find out if they're not in foreclosure anymore or if the address is bad (which can take a couple weeks sometimes). It's easy and automatic.

Are you using bulk or just stamps?

Thanks.

[TNinvestor]

I print 2 cards per each 8.5 x 11 sheet of card stock. They are just hand addressed and stamped.....pretty low tech...