Good marketing as a real estate investor is more than just being able to place an ad on Craigslist for a 3 bedroom 2 bathroom home available June 1st. What you really need to understand is direct response marketing. And if you're a real estate investor and you're not investing significant time, energy and money into your direct response marketing efforts then you're leaving money on the table.
You see direct response marketing is different than advertising. It is the form of marketing that is designed carefully to illicit an immediate and specific response. It has a response you can actually measure and track and improve upon over time.
Master direct response marketing and you'll find that it's easier to attract qualified tenants, willing lenders, motivated sellers, eager buyers, and enthusiastic partners with investment capital.
The best part is, with just the following three tips, you'll be able to do this with less time, effort and money than you would otherwise have to spend with more traditional methods of advertising.
1. Know your market
Direct response marketing is focused on the prospect. Telling people what a great partner you are, or what a wonderful rent to own program you have doesn't work. You have to help prospects understand the benefits of working with you. Explain what's in it for them. In order to do that you have to understand what they want.
Research what that person wants and then use that information to attract the motivated sellers that have the property type you're looking for and to find the tenants who want to live in that area - and maybe even will pay a premium to be there.
2. Always Be Testing!
Track where your leads come from and which leads convert into tenants, partners, lenders, sellers and buyers.
Some sources provide a lot of leads but they are never qualified. Other sources send very few leads but they are all qualified.
For example, you may devote a lot resources to placing ads in a magazine to find new joint venture partners. Those ads may send you dozens of prospects every week but very few ever invest with you. On the other hand, your referral program may only send you a lead every month but almost all of those leads invest with you. Instinctively you may be happier with the magazine ad but really you should spend more time developing your referral system because the quality of leads are better.
The only way you would spot something like this is if you are tracking your marketing efforts - and not just tracking the number of responses but tracking the number of responses that convert to your desired outcome.
3. Understand the elements of great copywriting
AWAI (the American Writers and Artists Institute) teaches their writers to create messages that are useful, unique, ultra-specific and urgent. Each message must be benefit driven with a compelling idea that inspires people to take action.
These elements are critical to every ad you run and every presentation you make.
Test it out! Post two ads for the same rental property online. Title one:
3 Bedroom, 2 Bathroom Home for Rent to Own June 1st, $1200 per month
Title the other one:
Stop Paying Your Landlords Rent! Move in to this Oceanview Home Today!
Put the same content inside the ad but just change that title. Then track which one gets the best response.
Maybe it's obvious which ad is going to perform better, yet a quick look at any online advertising website will tell you that 90% of the folks placing ads for rental properties and homes for sale don't get it! This makes it even more lucrative for you, if you do understand what makes a great proposition!
Begin applying these simple direct response marketing principles to your real estate investing business today and you'll immediately see an improvement in the quality of tenants, partners, lenders and sellers that you're attracting. And over time you just might start to find some of the money you've been leaving on the table as well!!