How to Create an Effective Mortgage Direct Mail Campaign

Direct mail is the most efficient and cost-effective way to generate new mortgage business there is. Marketing as we know it has changed dramatically in recent years. Homeowners have more resources than ever before, they can research almost any type of mortgage, business, or product online, and in a matter of seconds they have the information they want. This has taken away a significant percentage of the conventional forms of marketing. New spam laws and telemarketing do-not-call lists (on which more than 58 percent of US homeowners are registered) don’t leave many ways to market directly to homeowners. With these factors in mind, direct mail may be the best, most cost-effective way to reach new mortgage prospects. With direct mail, you would have the potential to reach 100 percent of all homeowners in the United States.

What if I told you that I discovered a direct mail piece that generates an astonishing 20 to 30 percent response?

I ship 75 pieces per week, at a cost of $35 (Including shipping). Of those, I typically get 15-20 incoming calls. These will generate about 8-10 new mini requests per week, which is all I need to hit my current closing goals of 5-6 closings per month.

create the mail

It should be obvious that to generate this type of response, the direct mail piece must be aggressive. There are two components to my direct mail campaign, both packed into one envelope. The first is a letter that simply says, “Please call me as soon as possible at (phone number) regarding the attached document,” followed by my name and signature. The second piece is what gets the landlord’s attention and also helps generate a great response, a copy of the landlord’s deed of trust.

The Deed of Trust is perceived by most owners as a very private financial document. In reality, of course, it is available through public records at any county clerk’s office. However, most consumers are unaware of this, so curiosity plays an important role in the effectiveness of this email. When they read the letter and notice someone has a copy of their deed of trust, people immediately ask who it might be and what it is about, especially since there is no solicitation wording of any kind in the attached letter. In fact, I created this email campaign based on a similar tactic sent to my house, which intrigued me in exactly this way.

You may receive calls from landlords who are confused or surprised that someone (you) has access to their legal documents. Some callers may even be angry or upset about the sender. Use those calls to explain your position and take the opportunity to tell them about your services. Homeowners in debt may be worried that this is another letter from their bank or a foreclosure warning. Once you reassure them that you’re there to help, you can almost always get an application over the phone. You would be surprised with the results.

In addition to the county clerk’s office, you can also obtain the deeds of trust from the title company you work with. Not all title companies have the resources to obtain deeds, but give a call and you may be able to find one. If not, don’t worry, my website http://www.MortgageDirectMail.com has information on how to obtain copies of the deeds.

provoke response

The contents themselves are not the only reason for this positive response. There are other aspects to why this direct mail campaign is so successful. The envelope and the way the recipients name and address appear also have a great effect. There’s a reason the national response rate is less than one percent. People hate spam and when they spot it, they tend to ignore the mail before opening it. Your first goal is to get the owner to open the envelope. It sounds simple, but a lot of people don’t think about it, and that’s the reason for the lower response rate.

Here are some suggestions for creating an attractive direct mail piece:

Step one

Develop a compelling direct mail piece. Use the one described above, or make up your own that will induce a great response. Remember, you don’t necessarily need to mention your services in the email. The method that has worked well for me is to simply provide my phone number and request that they call regarding the attached document.

Second step

Determine which owners you would like to target. Do you primarily deal with conventional, jumbo, or FHA loans? Do you want to specialize in a particular niche? Next, compile a list of homeowners to focus your marketing efforts on. You probably already have a similar list in your database. If not, call some of your contacts and title companies, many will produce a courtesy listing for you. Or you may want to buy leads from a reputable company.

Step three

Now that you have your mailing list, you must provide the address for each piece of mail you will send. This will take some time, but the results will be worth it. If you really don’t have the time and don’t have an assistant, you can recruit your children, hire a temporary assistant, or ask your friends for help.

Taking the time to hand-address envelopes is one of the most important steps, as it substantially increases your response rate. This is what gets them to open the piece of mail, most spam is not sent by hand. Also, I’ve found that the effect is even greater when I don’t use a company envelope to put a return address on it. You can choose to just put your name and address, but leave your company name and logo out. Many people dislike spam of any kind, and this is one way to avoid it.

Step four

Please use regular postage, not the bulk rate. Deliver marketing pieces to your post office on Saturday morning to ensure your mail reaches homeowners Monday and Tuesday, with some arriving Wednesday. Believe it or not, most people who respond to direct mail respond the first three days of the week. When mail arrives on Thursday or Friday, consumers tend to put calls off until after the weekend and then, in most cases, forget to follow up.

That is all! Four easy steps to a successful mortgage direct mail campaign that you can even do from home. By engaging the consumer and arousing their curiosity, you will dramatically increase your direct mail response rate.

Oliver Maldonado is a mortgage consultant, national sales trainer, and author of The Mortgage Book and The Greatest Sales Book in the World.

[email protected] or www.MortgageDirectMail.com.