Beginning Real Estate Investors Spend Too Much Time Doing Direct Mail Marketing

The starting investor spends an inordinate amount of time preparing and mailing each marketing campaign. From the outset, a successful campaign requires foresight into which market segments have higher potential for lead conversion. Once determined, the marketer needs to get access to a marketing list, cleanse the data, and then prepare a mail merge campaign for distribution. Lastly, they convert the campaign to hard copy, stuff and mail the completed letters to the prospects. Startups can handle this process for smaller campaigns but quickly find that it is not scalable precisely when attempting to grow their business.

The new investor, having no staff, is often times responsible for each aspect of the business. The challenge is any time spent doing marketing is time not spent doing directly profitable activities like lead conversion. To add further pressure, many have day jobs, which can limit the amount of time available to work on the business. While the established investor might source the lower value activities to a third party or member of their team, the starting investor does not always have the capital or experience to do so.

It is critically important for business owners to begin simplifying and automating any routine tasks in their business so that they can focus their time and energy on value added activities. To simplify they should streamline decisions and manual effort through processes and by leveraging external sources. When starting out it is both cost effective and conservative to work in the business alone. However, long-term growth achieved when the owner is working in their strengths and on revenue generating activities.

There are three actions to reduce marketing time and improve business growth and scalability. The first is leveraging market trend information to high-grade the process of choosing a target market segment. Investors should plug themselves into a local real-estate investors association and identify on-line sources for market insights. This will minimize the time spent on the front-end of each marketing cycle to determine where it is best to expand.

Next, it is important to simplify the data-gathering and preparation practices. Many of the online marketing data sources provide complex and expensive tools, which provide flexibility but then take it away by requiring the user to subset their data in awkward ways to fit within their marketing budget. After the data is gathered, the more manual and detail intensive task is data cleansing. The perceptive investor simplifies the reoccurring data gathering and cleansing tasks through easy and low-cost means. Finally, the task of preparing the mail campaign for distribution should be outsourced as soon as possible as it is the single biggest time sink and is not scalable without assistance.

Taking these steps will greatly minimize the time-spent marketing and leave more time for profit generating tasks such as working with and converting leads. Automating and simplifying is an important step to improving the scalability of business operations and preparing for business growth and expansion.