Hello! This is Haim THE Virtual Wholesaler Guy. I want to share with you how to run a mailing campaign report.
Obviously, you know the best way to send a business is to send them a mailer. There are ways to generate leads for free. But if you want to take the control of leads and flow or deals, the direct mail, in my opinion, is the way to go.
Instead of sending a mailer and hoping that you have deals coming in, It is really, really important to you to measure and track the numbers to make sure that you know which list produce the best result and which mailer produce the best results so you can focus all your effort only on the list that was produced the most result.
Here is what I do after a campaign mail was sent. I just want my numbers to see how the campaign performs.
This is a very small list. An inheritance list in Memphis. I sent them a yellow postcard and written postcard…something like this (Show the postcard). Very very basic.
I’ve sent 1500 mailers. The list cost me $517. Then the mailers cost I think about 2 or 3 mailers, so the total is $1376.72. The number of calls is 46. Out of this 46 calls, only 15 are the number of leads. So, on this 46 calls it was 30 that was removed from the list that not interested to sell. It would not give me the address and name. I don’t count it as a lead. The leads that I count are those that give me their address and their names. And have some interested to sell. If they are not motivated the system will consider them a lead. We have 15 numbers of lead so that was 1% response rate and it was typical. The cost per lead was $91.78. I will show you how I calculate it. It is the cost of the campaign divided by the number of mailers.
That is important to explain it to your lead manager. Every time someone calls, the worth of this call is $99, so every time they don’t call back or a seller on time that was $91. They just threw it to the garbage $91. If they don’t know how to handle a call and they don’t respond back, or if they don’t know what to say, Again a lot of people just send the mailers and never call back the leads and this is like throwing money to the garbage.
So, next is the number of appointments. In these 15 leads, only 8 of them will book appointments. That is pretty good! This 15 leads will call back usually and have some time of motivation that is why I like niche list. We booked 8 appointments. The conversion was 1 deal out of this 8 of this conversion. Not the greatest ratio. You obviously need to work on your acquisition guy to make sure they know what to do. You gave them the tools to be successful. Maybe for now the appointments were not great. So this is some people are taking on considerations. So, He closed 1 deal and the ratio between leads and appointments is two. For every two leads, we got an appointment which is great. It is usually not the case in general.
The appointment for deals is eight. For every eight appo, ntments we got a deal which is not great because, usually you need to shoot 30% conversion rate. Meaning for every 10 appointments you should get at least 3 contracts. The standard, again a good acquisition guy will get you 3 contracts for 10 appointments. Again, assuming the appointments are solid.
The Leads per deals ratio is 15 which is also great. For this specific list, it is 15 leads we got a deal which is great but usually higher than that. For me it is like 45-50 per deal. So, we got $9500 profit for the one deal we did for this list.
So, the average per deal, again if you have more than one deal you always have an average but this one we have only 1 deal it is only $9500.
I also measure the cost per appointment. So, it cost $172.09 to book an appointment. Again that is by dividing the cost of a mailing campaign by the number of appointments. That is also very important to explain it to your acquisition person. Listen if you do not do your job well you just threw to the garbage a $172. Basically for every appointment that I sent it cost me a $172. They need to understand the importance of it. So, if they go like 5 appointments per day, then just do the math and that is basically what I paid to generate this leads. That is a huge, huge numbers for them to drill it to their heads.
Every appointment cost us money to generate. The cost per deal is $1,376.72 if we have more than one deal. We will divide this numbers by the number of deal.
The ROI for this campaign is $690 which means for every $ I spent I get back $6.90. It is not too bad. They key is to have the system in place and to run your business like a business.
Track your mailing and I suggest 2 weeks after you drop your mail just assess and track your numbers and see what is the performance overtime. After you see like 3-4 times it get a good picture if this is a good leads. If you want to continue with these leads, or only you want to put your money only on the list and mailer that generate the most profit, you can obviously make more money.
Hopefully you find it helpful! If you want these list I will be happy to send it to you. I just want you to go and subscribe to my mailing list this is my “Learn how to Virtually Wholesale Properties From Anywhere in the World!” and I will include the link in the video. Whoever logged in I will send them these excel spreadsheets. Hopefully you like this video. Share it and like it. Subscribe to my channel and see you next time.