A well written Hardship Letter (written by the homeowner in his/her own handwriting) is one of the most important letter's in your Short Sale Packet. Sometimes bad things happen to good people. It is highly doubtful that the homeowner intended to default on his / her mortgage and end up in foreclosure. Most likely their enjoyment of the American Dream of homeownership was interrupted by some tragic event. Maybe the loss of a job, a bitter divorce, or the unfortunate untimely illness or death of a family member caused the homeowner borrower to default on his mortgage.
Whatever the catalyst, the lender wants to hear from the borrower just what happened to cause them to be in the financial situation they are in.
If the bank is going to consider taking a short sale, they need to be convinced that something drastic has happened to the borrower that will make it impossible for the borrower to recover and that it is in the bank's best interest to accept a short sale on the defaulted mortgage. The following is an example hardship letter (Of course details change according to each Distressed Homeowner).
DATE: ACCOUNT NUMBER:
BORROWER AGENT CONTACT (LENDER)
PROPERTY ADDRESS_______________________________________________________________________
RE: HARDSHIP LETTER
We have purchased our family's home in 2002. At this time we had the income to support the mortgage.
Since then, as you know, our country has experienced one the biggest housing market crashes in history. This, combined with the rising food and gas prices and current slowdown in the economy, has affected our ability to pay our bills on time.
Our adjustable interest rate mortgage payment has increased from ($) to ($) since we first purchased the house making it especially hard to keep it current. And in the last couple of years our home has lost about (55%) of its value making it difficult to refinance it since the equity we once had is now gone.
In early 2007 my father was diagnosed with cancer and need substantial medical support which included a nursing home which was all very expensive. He has since passed away in October of the same year and my husband lost his job and has since taken a significant cut in pay. We love our home and neighborhood and do not want to lose it, but we have come to realize that we can't afford it any longer.
With our combined incomes of only $40,000 annually and by exhausting all of our savings, IRA's and college funds, we were able to keep up with our mortgage and stay current until June 2008. Since then, we have no longer been able to keep up and tried to get partial payments, payment plans, and to refinance; which were denied on all account. In August of 2008 we put our home up for sale with (Agent Name and Brokerage) who specializes in pre-foreclosure properties and short sales.
At this point we are trying to avoid foreclosure and/or bankruptcy and would like to discuss with you the possibility of getting a (short sale, loan modification, refinance, repayment plan, reinstatement, forbearance, deed in Lieu) that could be beneficial for both parties. I know that a foreclosure would affect me for years to come, I ask that you please assist me in avoiding this.
Enclosed, please find copies of the our financial statements. (include documents that offer proof of financial hardship: Copies of any unpaid bills and/or late notices you have received in the last 6 months. Including: credit cards, car payments,...Past 2 months of Proof of Income. Including: paycheck Stubs, social security,... Last quarter's profit and loss statement if self-employed, Past 2 years of income tax returns, and last 3 months of bank account statements.)
We truly appreciate any effort you can make to help our family through this situation.
I/we, (Home Owner Name/Co-signer Name), state that the information provided above is true and correct to the best of my/our knowledge.
Sincerely,
Obviously short sales are more difficult than your average buy/sell, but if agents want to maintain or grow a successful business, learning how to work a short sale is vital. It's not going away anytime soon. We still have another huge hurtle when the adjustable rate mortgages flex their muscle in the coming years. To see a list of 27 documents every Short Sale Packet must have just click on this link: www.quickimpress.com
Your marketing efforts are the first or last that a consumer knows of you. Make it good and make it memorable. Here's to your success.
Wednesday, June 17, 2009
Wednesday, April 22, 2009
10 Reasons Postcards Work
If your marketing activity doesn't include postcards, you're overlooking a highly effective and very low-cost sales tool. Here are 10 reasons postcards should be part of your marketing program...
1. Postcards Work for Any Business, but they are highly effective for the Real Estate industry.
2. Using Effective Custom Cards is Simple and UncomplicatedPostcards usually work best when the message is brief and the postcard looks at first glance like a message from friend. Here is an example:
3. Printing Postcards is Easy and InexpensiveAfter choosing your custom card, your next step is simply to choose how many you wish printed. Usually, your cards will be in the mail and on their way to you within 48 hours.
4. There's a Special Low Postage Rate for PostcardsYou can send any quantity of postcards by First Class Mail in the US for only 23 cents each. The only requirement is that your postcards must be at least 3 1/2 x 5 inches but no larger than 4 1/4 x 6 inches.
5. Postcards Almost Always Get ReadBecause postcards are delivered "ready to read" most folks will read it, even those who speedily throw direct mail away.
6. Postcards are effective for Generating Web site TrafficRemember that a postcard is used to stay in touch with and drive people to you, not as a sales pitch. Use your postcards to generate leads not sales. You are the salesperson and can close the deal when they call or email you.
7. Postcard Multiply ThemselvesPostcards are like small billboards. They are often hung on a refrigerator or given to friends and family, providing more bang for your buck!
8. Markets Can Be Precisely Targeted With PostcardsOnce you have a list of consumers who have similar needs you can send them information on the postcard that is relevant and personalized. This creates the scenario that the recipient thinks you are talking directly to them. For instance, working short sales is very lucrative and will be for several more years. It makes sense to send "Foreclosure" or "Short Sale" postcards to neighborhoods that are in distress. You can also send clever "Buyer" postcards to high rent areas that reminds them of the new buyer tax incentive and great deals on homes.
9. Marketing Results Are Easy To MeasurePostcards normally generate over 90 percent of their total response within 7 to 10 days. This enables you to quickly and accurately evaluate the results of a postcard campaign.
10. Postcards Conceal Your Marketing from CompetitorsMost advertising uses mass media where your competitors hear or see what you are doing - and copy it. Postcard marketing is personal. Only you and your prospects are aware of what you are doing.
Postcards are a very cost-effective and efficient way to market your business. Combine that with their ability to generate a high response rate, and you have a tremendously powerful marketing tool. Here's to your success.
1. Postcards Work for Any Business, but they are highly effective for the Real Estate industry.
2. Using Effective Custom Cards is Simple and UncomplicatedPostcards usually work best when the message is brief and the postcard looks at first glance like a message from friend. Here is an example:
3. Printing Postcards is Easy and InexpensiveAfter choosing your custom card, your next step is simply to choose how many you wish printed. Usually, your cards will be in the mail and on their way to you within 48 hours.4. There's a Special Low Postage Rate for PostcardsYou can send any quantity of postcards by First Class Mail in the US for only 23 cents each. The only requirement is that your postcards must be at least 3 1/2 x 5 inches but no larger than 4 1/4 x 6 inches.
5. Postcards Almost Always Get ReadBecause postcards are delivered "ready to read" most folks will read it, even those who speedily throw direct mail away.
6. Postcards are effective for Generating Web site TrafficRemember that a postcard is used to stay in touch with and drive people to you, not as a sales pitch. Use your postcards to generate leads not sales. You are the salesperson and can close the deal when they call or email you.
7. Postcard Multiply ThemselvesPostcards are like small billboards. They are often hung on a refrigerator or given to friends and family, providing more bang for your buck!
8. Markets Can Be Precisely Targeted With PostcardsOnce you have a list of consumers who have similar needs you can send them information on the postcard that is relevant and personalized. This creates the scenario that the recipient thinks you are talking directly to them. For instance, working short sales is very lucrative and will be for several more years. It makes sense to send "Foreclosure" or "Short Sale" postcards to neighborhoods that are in distress. You can also send clever "Buyer" postcards to high rent areas that reminds them of the new buyer tax incentive and great deals on homes.
9. Marketing Results Are Easy To MeasurePostcards normally generate over 90 percent of their total response within 7 to 10 days. This enables you to quickly and accurately evaluate the results of a postcard campaign.
10. Postcards Conceal Your Marketing from CompetitorsMost advertising uses mass media where your competitors hear or see what you are doing - and copy it. Postcard marketing is personal. Only you and your prospects are aware of what you are doing.
Postcards are a very cost-effective and efficient way to market your business. Combine that with their ability to generate a high response rate, and you have a tremendously powerful marketing tool. Here's to your success.
Friday, April 17, 2009
The following are a few quick facts regarding Short Sales. Most agents have concluded that learning and working short sales is important to running a successful real estate business. This is not comprehensive, rather a guide.
What type of property is qualified for a short sale?
Banks consider short sales for a variety of reasons
-Any home, any size, any style or condition can be considered for a short sale
Normal steps to start the short sale process
-The homeowner must be in distress
-The short sale option must be discussed, disclosed, signed by, and agreed by the homeowner.
-The homeowner must sign an authorization release form with the real estate agent
-The homeowner also must sign a sales contract
Contact the loss mitigation department (bank or lender of loan(s))
-Fax an offer to the bank
-Include a cover letter with the offer explaining why the offer is less than full price.
-A closing statement on how much the bank will net after all fees have been paid
-The homeowners hardship letter
-An estimate on the cost of repairs for the home
What happens to the seller’s credit?
-Try to get the bank to accept the full payment without pursuit of any deficiency judgment.
-Homeowners should speak to their accountant for advice
Are there other options?
-Many lenders are willing to offer loan modification programs after Fannie Mae and Freddie Mac have introduced additional programs. The options include, extending the loan life, adding delinquent payments to the principal and/or reducing the interest rate.
-The ideal candidate for short sales is still making loan payments and has a good credit rating.
-It may be possible to refinance an adjustable (ARM) rate loan with the Federal Housing Authority (FHA).
What are the seller’s options if the bank or lender rejects the short sale?
There are a number of reasons a bank will reject a short sale. Look for another buyer.
-A short sale may be rejected if the loan is less than a year old. The loan servicer may require that the loan is bought back by the original lender.
Are there tax liability with short sales?
-Check with a tax expert. The IRS requires the lender to submit a Form 1099 stating the forgiven amount. Sellers who meet the IRS definition of insolvency (bankruptcy or debts exceeding assets), may not have to pay taxes on forgiven amounts.
The U.S. House of Representatives introduced the Mortgage Cancellation Tax Relief Act which eliminated taxes on forgiven debt on principal residence through either short sale or foreclosure.
Obviously short sales are more difficult than your average buy/sell, but if agents want to maintain or grow a successful business, learning how to work a short sale is vital. It's not going away anytime soon. We still have another huge hurtle when the adjustable rate mortgages flex their muscle in the coming years. Here's to your success.
What type of property is qualified for a short sale?
Banks consider short sales for a variety of reasons
-Any home, any size, any style or condition can be considered for a short sale
Normal steps to start the short sale process
-The homeowner must be in distress
-The short sale option must be discussed, disclosed, signed by, and agreed by the homeowner.
-The homeowner must sign an authorization release form with the real estate agent
-The homeowner also must sign a sales contract
Contact the loss mitigation department (bank or lender of loan(s))
-Fax an offer to the bank
-Include a cover letter with the offer explaining why the offer is less than full price.
-A closing statement on how much the bank will net after all fees have been paid
-The homeowners hardship letter
-An estimate on the cost of repairs for the home
What happens to the seller’s credit?
-Try to get the bank to accept the full payment without pursuit of any deficiency judgment.
-Homeowners should speak to their accountant for advice
Are there other options?
-Many lenders are willing to offer loan modification programs after Fannie Mae and Freddie Mac have introduced additional programs. The options include, extending the loan life, adding delinquent payments to the principal and/or reducing the interest rate.
-The ideal candidate for short sales is still making loan payments and has a good credit rating.
-It may be possible to refinance an adjustable (ARM) rate loan with the Federal Housing Authority (FHA).
What are the seller’s options if the bank or lender rejects the short sale?
There are a number of reasons a bank will reject a short sale. Look for another buyer.
-A short sale may be rejected if the loan is less than a year old. The loan servicer may require that the loan is bought back by the original lender.
Are there tax liability with short sales?
-Check with a tax expert. The IRS requires the lender to submit a Form 1099 stating the forgiven amount. Sellers who meet the IRS definition of insolvency (bankruptcy or debts exceeding assets), may not have to pay taxes on forgiven amounts.
The U.S. House of Representatives introduced the Mortgage Cancellation Tax Relief Act which eliminated taxes on forgiven debt on principal residence through either short sale or foreclosure.
Obviously short sales are more difficult than your average buy/sell, but if agents want to maintain or grow a successful business, learning how to work a short sale is vital. It's not going away anytime soon. We still have another huge hurtle when the adjustable rate mortgages flex their muscle in the coming years. Here's to your success.
Thursday, April 16, 2009
How to develop your Identity Awareness
No one can deny that we live in a fast paced, many times impersonal world. Texting, chatting, and social network sites have taken over as the norm for communication and socialization and even expected. Many would say that we have turned away from the heart of society and that we now live in a rational world. However, this is not true. What drives us is still emotions. Emotions drive our behavior; the world is driven by emotions more than ever.
For proof, look at our entertainment business. They are forever trying to keep up with consumers expectations in the thirst for extreme entertainment and the thrill of an emotional rollercoaster ride. It's not an easy task these days and have lifted the bar to high levels. This is easily noted in face paced, action movies that demand your attention just to keep up. They incorporate unbelievable action scenes (yet believable), amazing cinematography, good acting, love scenes, scary scenes, and comic relief. Even the best love stories, though slower pace than action, draw upon all your senses to arouse your interest. No doubt, consumers love the play on emotions.
Drawing on your customers emotion is vital to a successful marketing campaign. If this important attribute is lacking, your money and time is wasted. Not good! In this economy every dollar spent needs a huge return. Consumers needs and wants may start with a rational thought, but if you want attention in the market, it's emotion that sells. You must capture the mind and heart and then find strategies that make buying decisions emotionally driven by removing the rational questions that may turn customers away.
The profit of color and imaging.
How important is color? Consider these powerful facts from various marketing studies:
· Color increases brand recognition by up to 80 percent.
· Color improves readership as much as 40 percent.
· Color accelerates learning from 55 to 78 percent.
· Color increases comprehension by 73 percent.
· Color ads are read up to 42 percent more than similar ads in black and white.
· Color can be up to 85 percent of the reason people decide to buy.
It's very important to know which emotions will trigger your target audience to buy your product or service. To accomplish this goal takes a combination of attributes. Images and colors are the quickest way to draw a consumer in. In our quick paced society, you have three seconds max to make people pause and notice you. Seldom is that accomplished with words only.
Another study found these interesting facts:
92% Believe color presents an image of impressive quality
90% Feel color can assist in attracting new customers
90% Believe customers remember presentations and documents better when color is used
83% Believe color makes them appear more successful
81% Think color gives them a competitive edge
76% Believe that the use of color makes their business appear larger to clients
Whether a person knows it or not, a certain color will trigger a certain response. If you want their response to reach out to you, know your colors and their related response.
Lastly, you need emotionally responsive words. They are important, but should never stand alone. There are words that generate an emotional response. Applying emotionally responsive words to your marketing products will increase your sales, but should never be taken out of content. Keep in mind industry specific information that applies to your products/services, and make sure your offerings fall in line with your industry. Failure to do that will destroy your credibility and reduce the trust you are trying to build.
Your marketing efforts are the first or last that a consumer knows of you. Make it good and make it memorable. Here's to your success.
It All Depends On Your Postcard
Many agents think that the tried and proven methods of advertising does not work. Not all methods are created equal and you can't rely on just one method for all your advertising needs. I've heard many agents say that they use only online resources to sell and promote. I know it's a fact that buyers and sellers are very computer savvy and who doesn't love online resources and just spending time on the net. Our youngest consumers are very computer literate and I must say that I do the majority of my shopping online now.
Listing homes certainly has its place online and has a tremendous success rate. However, you can't rely on the net for self promotion and staying in front of your clients, community, and SOI. An agent that customers hear from is one that they will keep in mind and keep doing business with.
Like any other marketing campaign, sending postcards to your customer and prospect list is not a one-time event. You should consider a minimum of four mailings and ideally up to 12 mailings per year. Effective postcard campaigns are based on the season and sales cycle of your business. You can now add to that our economy and the rate of foreclosures and short sales, both on the buying and selling side.
According to industry measures effective campaigns average a 5 percent to 15 percent response rate, with some campaigns such as Reward or Foreclosure postcards averaging 15 percent to 50 percent response rate.
In spite of the rising cost of everything, postcard marketing is still extremely affordable and remains an effective direct marketing tactic that is easily incorporated into your business marketing mix. Here are five tips for effective postcard marketing.
1. Choose your message carefully. When customers receive your card, they'll glance at it, and in the space of only a few seconds, decide whether or not they want to read more. Find script on benefits and support it with features. Benefits are what's in it for the customer while features are the facts supporting the benefit to buy. Benefits drive marketing response.
2. Find designs with emotional marketing standards. Effective postcard designs rely on a fast visual punch. In keeping with your branding use visually stimulating colors and fonts since your postcard must stand out from the batch of mail, and stay away from clipart, cheesy type postcards. Use strong colors, intriguing photos, and large headlines to gain attention.
3. Use both sides of the card. You don't know which side will face up when customers receive their mail. Design your postcard marketing with both sides of the card in mind, and be sure to repeat your message. This way you'll have the best chance at attracting the customer's attention.
4. Use Real Stamps. Use real postage stamps on your postcards. It produces more replies than imprinting the postage. You can send postcards by First Class Mail in the US for only 24 cents if you make them at least 3 1/2 by 5 inches but no larger than 4 1/4 by 6 inches.
5. Time the Delivery of Your Postcards
Mail your postcards so they are likely to arrive on Tuesday or Wednesday. The volume of mail delivered on those days is usually light and your postcards will not have to compete with a lot of other mail delivered at the same time.
Controlling the delivery day of your postcards is easy if you use First Class Mail. Just allow 2 to 3 days for delivery - depending on how far they have to go. That's the normal delivery time for First Class Mail in the US.
Postcards are one of the most effective marketing tools you can use to generate website traffic or sales leads. While Postcards are not new and may not be as exciting as some methods such as online/web ads and blogging, they really work ...especially if you follow these 5 proven postcard marketing tactics.
Listing homes certainly has its place online and has a tremendous success rate. However, you can't rely on the net for self promotion and staying in front of your clients, community, and SOI. An agent that customers hear from is one that they will keep in mind and keep doing business with.
Like any other marketing campaign, sending postcards to your customer and prospect list is not a one-time event. You should consider a minimum of four mailings and ideally up to 12 mailings per year. Effective postcard campaigns are based on the season and sales cycle of your business. You can now add to that our economy and the rate of foreclosures and short sales, both on the buying and selling side.
According to industry measures effective campaigns average a 5 percent to 15 percent response rate, with some campaigns such as Reward or Foreclosure postcards averaging 15 percent to 50 percent response rate.
In spite of the rising cost of everything, postcard marketing is still extremely affordable and remains an effective direct marketing tactic that is easily incorporated into your business marketing mix. Here are five tips for effective postcard marketing.
1. Choose your message carefully. When customers receive your card, they'll glance at it, and in the space of only a few seconds, decide whether or not they want to read more. Find script on benefits and support it with features. Benefits are what's in it for the customer while features are the facts supporting the benefit to buy. Benefits drive marketing response.
2. Find designs with emotional marketing standards. Effective postcard designs rely on a fast visual punch. In keeping with your branding use visually stimulating colors and fonts since your postcard must stand out from the batch of mail, and stay away from clipart, cheesy type postcards. Use strong colors, intriguing photos, and large headlines to gain attention.
3. Use both sides of the card. You don't know which side will face up when customers receive their mail. Design your postcard marketing with both sides of the card in mind, and be sure to repeat your message. This way you'll have the best chance at attracting the customer's attention.
4. Use Real Stamps. Use real postage stamps on your postcards. It produces more replies than imprinting the postage. You can send postcards by First Class Mail in the US for only 24 cents if you make them at least 3 1/2 by 5 inches but no larger than 4 1/4 by 6 inches.
5. Time the Delivery of Your Postcards
Mail your postcards so they are likely to arrive on Tuesday or Wednesday. The volume of mail delivered on those days is usually light and your postcards will not have to compete with a lot of other mail delivered at the same time.
Controlling the delivery day of your postcards is easy if you use First Class Mail. Just allow 2 to 3 days for delivery - depending on how far they have to go. That's the normal delivery time for First Class Mail in the US.
Postcards are one of the most effective marketing tools you can use to generate website traffic or sales leads. While Postcards are not new and may not be as exciting as some methods such as online/web ads and blogging, they really work ...especially if you follow these 5 proven postcard marketing tactics.
27 Documents needed for a Short Sale
One of the most important elements in a short sale is putting together a complete short sale packet. Without it your file will not even be opened, let alone reviewed. Listed below are the documents you need in order to gather the information to complete a successful short sale packet.
The number one reason a short sale is delayed is due to not providing all the information the lender requests to process a short sale. The file will sit abandoned until all the documents are received. This is another reason why Loss Mitigation Departments are responsible for handling 200 or more files a month. Borrowers submit incomplete packets and the loss mitigations put their file at the bottom of the pile.
To avoid this costly and sometimes fatal error, review the checklist below. It may be helpful next time you are submitting your file to the lender. Some of the items below are for your records only, but necessary in obtaining all the information you need for your Short Sale Lender Packet.
Here are the 27 documents you need:
Typical
1. Bank Statement
2. Bank Stubs
3. Listing Agreement
4. Tax Returns
5. Paycheck Stubs
6. Buyers Approval Letter
7. Purchase and Sale Contract
8. Preliminary Closing Statement
Letters
9. Short Sale Disclosure
10. Escrow Letter
11. Cover Letter: This is the introductory letter that you send along with your package outlining the transaction to the lender. Each lender would receive their own proposal.
12. Hardship Letter: The Hardship Letter should explain how the seller got into financial trouble and must convey the basic message that the seller can't make payments AND does not foresee any way that they will ever again be able to make any payments.
Disclosures
13. Short Sale Disclosure
Forms
14. Authorization to Release Form : You need this initial document. If you do not get this signed you can't speak to the bank at all.
15. Homeowners Financial Worksheet: This should be very comprehensive. I have developed a 4 page worksheet that lenders will appreciate.
16. Damage and Repair Photo Notes: If the property needs repair this will influence the bank. You should supply the repair estimate with pictures and general contractor estimates that the normal homeowner would pay for these items...not necessarily our costs.
17. Property History View
18. Estimated Carrying Cost
19. Market Statistics
20. Listing History
21. Comps
22. Marketing Photo Notes
23. Price Change Log
24. Repairs and Property Damage Form
Checklists
25. Homeowner's Document Checklist
26. BPO Appointment Checklist: You may have learned how critical it is that we influence the BPO. The lender will hire an appraiser or a realtor to go to the house and determine the value of that property. Make sure you are the contact person who meets them at the house and lets them in.
27. HUDS: The HUD-1 Net Sheet shows how the money is to be dispersed at closing. The lender looks for recognizable and unacceptable red flags, such as: excessive commissions in this transaction, any cash going to seller etc. Make sure you understand how the HUD is supposed to be prepared.
Obviously short sales are more difficult than your average buy/sell, but if agents want to maintain or grow a successful business, learning how to work a short sale is vital. It's not going away anytime soon. We still have another huge hurtle when the adjustable rate mortgages flex their muscle in the coming years.
I hope this list is helpful. I've heard from many agents that simply having a list for reference is helpful. However, if you don't want to re-invent the wheel I have the Letters, Forms, HUD's, Disclosure, and Checklists available as a download. These are proven effective. I priced similar packets on the web where they are asking hundreds of dollars. My business structure is centered around our new economy and streamlined so that agents who need this information can take advantage of it. Priced at under $40 it's a great resource that could make a difference in the success of your next Short Sale.
Your marketing efforts are the first or last that a consumer knows of you. Make it good and make it memorable. Here's to your success.
Remember that every short sale is different, and will have different guidelines, but if you use this list as a guideline you should quickly, easily and accurately be able to complete a short sale packet, and have the lender review your file.
10 Mistakes To Avoid in Your Marketing Campaigns, Part 2
Part 1, included the first 5 mistakes...
Postcards are the cheapest and one of the most effective forms of direct-mail marketing. Great postcards hit your prospects fast and elicit an immediate impression since they don't have to tear through an envelope to get to the meat of your message. Direct-mail postcard campaigns decrease the likelihood that your prospects will throw your promotional pieces away before reading them, and increase the chance that they'll follow through and respond. Like all forms of direct mail, postcard marketing campaigns depend on the right blend of style, substance and value.
Not Targeting Your Farming Correctly Marketing with postcards is only effective if you segment out your target audience. Once you have a list of consumers who have similar needs you can send them information on the postcard that is relevant and personalized. This creates the scenario that the recipient thinks you are talking directly to them. For instance, working short sales is very lucrative and will be for several more years. It makes sense to send "Foreclosure" or "Short Sale" postcards to neighborhoods that are in distress. You can also send clever "Buyer" postcards to high rent areas that reminds them of the new buyer tax incentive and great deals on homes. Here are two examples:
Lack of Repetition Create a postcard marketing campaign, not just a one-time mailing. Studies show that the average person needs to see or hear something four times before it completely registers, so in most cases, initial postcards will not generate sales. This is why a successful postcard campaign includes several mailings that builds up to the sales pitch. Try sending three or more postcards to the same mailing list, spaced about four to six weeks apart. When someone sees your name over and over again, it builds credibility and familiarity. As with most direct mailers, your are creating your name recognition, that's what it's all about and it works. Don't give up just before the reward! Although it may take a number of contacts with a customer before it leads to a sale, the eventual increase in your bottom line far offsets the small cost of postcard printing.
Not Personalizing or Using Trite Phrases Your postcards must look professional but, at the same time, carry a message that produces an emotional reaction from readers. Include a personal message on your postcard and it will generate more replies than those that read like an advertisement. This is for branding and recognition, not to close any deal.
Not using Emotional Marketing You have enough space on the postcard for a couple of brief sentences. Think through the goal you have for the campaign and avoid the 'cookie cutter' messages such as 'I provide the best service' or 'My team is the best because...' You need emotionally responsive words that generate an emotional response. Applying these words to your marketing products will increase your name recognition and build your business. Add to that bold colors and high-quality photos that will attract attention and make people want to read your card.
Not seeding your mailing list Whenever you conduct a postcard campaign, make certain that you place addresses of friends, relatives and your address on the list. This will enable you to know exactly when the postcard reaches your intended audience. If you don't receive your card in a timely manner, you can follow up with the mailing list company to determine the cause.
Postcards are a very cost-effective and efficient way to market your business. Combine that with their ability to generate a high response rate, and you have a tremendously powerful marketing tool. Here's to your success.
Postcards are the cheapest and one of the most effective forms of direct-mail marketing. Great postcards hit your prospects fast and elicit an immediate impression since they don't have to tear through an envelope to get to the meat of your message. Direct-mail postcard campaigns decrease the likelihood that your prospects will throw your promotional pieces away before reading them, and increase the chance that they'll follow through and respond. Like all forms of direct mail, postcard marketing campaigns depend on the right blend of style, substance and value.
Not Targeting Your Farming Correctly Marketing with postcards is only effective if you segment out your target audience. Once you have a list of consumers who have similar needs you can send them information on the postcard that is relevant and personalized. This creates the scenario that the recipient thinks you are talking directly to them. For instance, working short sales is very lucrative and will be for several more years. It makes sense to send "Foreclosure" or "Short Sale" postcards to neighborhoods that are in distress. You can also send clever "Buyer" postcards to high rent areas that reminds them of the new buyer tax incentive and great deals on homes. Here are two examples:
Lack of Repetition Create a postcard marketing campaign, not just a one-time mailing. Studies show that the average person needs to see or hear something four times before it completely registers, so in most cases, initial postcards will not generate sales. This is why a successful postcard campaign includes several mailings that builds up to the sales pitch. Try sending three or more postcards to the same mailing list, spaced about four to six weeks apart. When someone sees your name over and over again, it builds credibility and familiarity. As with most direct mailers, your are creating your name recognition, that's what it's all about and it works. Don't give up just before the reward! Although it may take a number of contacts with a customer before it leads to a sale, the eventual increase in your bottom line far offsets the small cost of postcard printing.
Not Personalizing or Using Trite Phrases Your postcards must look professional but, at the same time, carry a message that produces an emotional reaction from readers. Include a personal message on your postcard and it will generate more replies than those that read like an advertisement. This is for branding and recognition, not to close any deal.
Not using Emotional Marketing You have enough space on the postcard for a couple of brief sentences. Think through the goal you have for the campaign and avoid the 'cookie cutter' messages such as 'I provide the best service' or 'My team is the best because...' You need emotionally responsive words that generate an emotional response. Applying these words to your marketing products will increase your name recognition and build your business. Add to that bold colors and high-quality photos that will attract attention and make people want to read your card.
Not seeding your mailing list Whenever you conduct a postcard campaign, make certain that you place addresses of friends, relatives and your address on the list. This will enable you to know exactly when the postcard reaches your intended audience. If you don't receive your card in a timely manner, you can follow up with the mailing list company to determine the cause.
Postcards are a very cost-effective and efficient way to market your business. Combine that with their ability to generate a high response rate, and you have a tremendously powerful marketing tool. Here's to your success.
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