I have heard many people say that generating leads for creative real estate investing is a numbers game. That may be very true, but there are definitely things that you can do to make those numbers work in your favor, and greatly improve your odds with less money spent in the process.
Why do we need to generate leads? This is what I tell my students: You must learn and understand my axiom, proven time and time again:
LACK OF LEADS = LACK OF DEALS = YOU ARE OUT OF BUSINESS!
Now this is true of almost every business, but lets look today at a few strategies that I use to improve my cost per lead ratio as low as possible. The first thing I want to discuss is the Shotgun vs. Targeted approach for obtaining motivated sellers.
The shotgun method involves buying a list of several zip codes and mailing to everyone on the list. The other name for this strategy is blind archery, because you are essentially shooting a thousand arrows up into the sky, hoping that they actually hit something. You can make a business out of this if you are willing to spend a whole lot of money and are prepared to do this each month because your response rate will be very low.
The other problem with this tactic is that it is impossible to tailor a message to this audience with this approach. Are you looking for people who are behind in house payments? People going through a divorce? Someone who just was laid off from their job? With the shotgun approach you are never going to know..and it is important to understand that each of these groups is psychologically very different and will respond to different messages. For all those reasons, it will be extremely hard, if not impossible to achieve message to market match which is the foundation of a successful marketing campaign.What works much better is to get the most targeted list you can obtain and write a message to that group addressing their current need and situation. You can get list of people in foreclosure fairly easily, because thats public record and there are probably many people in your local area that compile a fresh list every week and will sell you that