TL;DR
- Industry average response rate: 0.5-1% (down from 2-3% a decade ago)
- Top performer response rate: 2-4% (same list quality gap as always)
- The difference: List quality accounts for 80% of performance variation
- AI-targeted lists produce 2.5-4x better results than generic absentee lists at equivalent cost
- Volume approach (10,000 pieces): $5,000 spend, 0.5% response, 1 deal = $5,000 CPD
- Quality approach (2,000 AI-scored): $1,000 spend, 2.5% response, 2 deals = $500 CPD
- Same budget, 10x better CPD
Mail Economics Deep Dive
Format ROI Comparison
| Format | Cost/Piece | Response Rate | CPD Range |
|---|---|---|---|
| Postcard | $0.40-0.55 | 0.6-1.2% | $2,800-4,500 |
| Letter (plain) | $0.65-0.85 | 0.8-1.8% | $2,200-3,600 |
| Yellow Letter | $0.90-1.25 | 1.2-2.4% | $1,800-3,200 |
| Handwritten-style | $1.20-1.80 | 1.4-2.8% | $1,600-2,800 |
Yellow letters and handwritten-style show higher response rates, but the ROI gap narrows when you factor in cost. Test in your market - results vary significantly.
Touch Frequency Data
Client Results
“We were mailing 15,000 pieces monthly with 0.4% response. After switching to BuyBox IQ-targeted lists, we mail 4,000 and get 2.1% response. Same deal flow, 73% less spend.”
— Dallas investor, 120 deals/year
How many times should you mail the same list?
| Touches | Cumulative Response | Marginal Response | Recommendation |
|---|---|---|---|
| 1 | 1.2% | 1.2% | Baseline |
| 2 | 1.9% | 0.7% | High ROI |
| 3 | 2.4% | 0.5% | Good ROI |
| 4 | 2.7% | 0.3% | Diminishing |
| 5+ | 2.9% | 0.2% | Low ROI |
After 3 touches, marginal response drops below cost-efficiency threshold for most operators. Move those records to quarterly nurture instead of monthly mail.
Day-of-Week Performance
Mail arrival day affects response (data from tracked campaigns):
| Arrival Day | Response Index |
|---|---|
| Monday | 85 (below avg) |
| Tuesday | 108 (above avg) |
| Wednesday | 112 (peak) |
| Thursday | 106 (above avg) |
| Friday | 89 (below avg) |
| Weekend | 94 (below avg) |
Time your mail drops to land Tuesday-Thursday. Count backward 3-5 days for first class, 7-14 for standard.
Market Exclusivity Economics
When multiple investors mail identical lists, everyone's results degrade.
Measured effect of list overlap:
| Investors Mailing Same List | Response Degradation |
|---|---|
| 1 (exclusive) | Baseline |
| 2-3 | -12% |
| 5-10 | -28% |
| 10+ | -45% |
In saturated markets (Phoenix, Dallas, Atlanta), the same PropStream list may hit 10+ competing investors. Your "0.5% response rate" might be 0.9% with exclusivity.
The exclusivity premium: Paying $0.35/record for exclusive lists vs $0.12/record for commodity lists looks expensive - until you factor in the 2-3x response rate difference.