Saturday, August 27, 2016

DIY Yellow Letters (Free Template) - M3 Tip #1

What's up Pennies? This is the first of my M3 (Money Making Marketing) tips. Today we're going to talk letters, more specifically yellow letters. Awesome right? NOT! Now what about yellow letters? Who cares about yellow letters you ask? I DO, and trust me, you will too once you learn how much $$money$$ they can make you! Plus, I've included a free template download to make it easy for you.

Yellow letters, in a nutshell, are personalized letters, written in red ink on yellow paper. You've seen this yellow paper before, it's the kind you'd normally find in legal pads. Yellow letters are used mainly by wholesalers, who lock up real estate properties under contract at a discount and resale the contract at a profit to an investor before closing. Yellow letters are mailed directly to property owners who suffer with liens, mortgage problems, or they live out of state, or just inherited property from the death of a loved one. Wholesalers generally find these people through list brokers like  listsource.com  and agentpro247.com, who offer customizable homeowner leads lists.

Equipped with the leads, wholesalers usually send the list to 3rd party companies like yellowletterscomplete.com and yellowletters.com, who direct mail the leads with pre-written yellow letters. The response rates are surprisingly high (avg of 5%-15%) for yellow letters,and therefore a maketing tool worth having.

So if you really don't have a whole lot of money to invest in a huge marketing campaign, NO PROBLEM! Here's how you can make and mail yellow letters in 3 easy steps.

Step 1: Yellow Paper and Envelopes
Now as much fun as it would be to rip all of the paper out of 2000 legal pads, I don't think I can stand that much joy in my life! So we found a pack of 500 sheets of loose leaf yellow ruled paper on Amazon for only $13 click here for link. And for only $12-$13, you can buy 4 1/8 x 9 1/2 IN. envelopes from the Dollar Tree, they come 40 in a pack. BOOM! Step 1 done.

Step 2: Drafting and printing your letters
I have a free yellow letter template that you can download here that gives you the proper wording. Below is an amazing video from REI guru Christopher Seder from vacanthouseriches.net that shows you how to set up your template correctly so everything lines up once you print your yellow letters. Plus he shows you how to automate your template to pull the names and addresses from your leads list and generate each letter for you. Which means you won't have to do each letter one by one!!! CHECK THIS OUT! It saves a TON of time.



Step 3: Postage and Mailing
The final step is easy. Buy some stamps from your local post office. They sell them by the roll and you can buy as many as your budget can afford. The postage rate fluctuates so you'll have to readjust your marketing budget accordingly. For example, a budget of 400 letters every month, which at $0.47 per stamp (current rate) is $188.00 per month for postage. Postage is your most expensive investment in direct mail, but it's well worth it. It would cost you almost $450 to mail 400 letters using an online yellow letter service. With the example budget, postage ($188) + envelopes ($13) + paper ($13) = $214.00. You're saving yourself over 50%!!!

Next assemble your letter and HANDWRITE the envelopes. Handwriting the outside of the envelope gives it a personalized and authentic touch, plus it looks a lot less like junk mail. This gives the letter a more likely chance to be opened because it peaks the recipient's interest and curiosity. After that just drop the letters off at your local post office or mail pickup and that's that.

Cheers my penny friends :)

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