TL;DR
- Direct Mail: 1.2-2.5% response, $1,800-4,200 CPD, lowest compliance risk
- Cold Calling: 12-18% contact rate, $1,400-3,800 CPD, moderate compliance risk
- SMS: 0.5-2% response (declining), $800-2,400 CPD, highest compliance risk
- **Multi-channel sequence (Mail + Call + SMS):** 1.8x higher close rate than single-channel
Channel #1: Direct Mail (Primary)
Direct mail remains the foundation because it scales without compliance nightmares.
Why mail first: - No consent requirements - No carrier filtering - No TCPA exposure - Physical presence in their home - Can reach anyone with a mailing address
Realistic 2025 benchmarks: - Response rate: 0.8-2.5% (list quality dependent) - Lead-to-deal: 3-6% - Cost per piece: $0.40-0.80 (postcard), $0.70-1.50 (letter) - CPD: $1,800-4,200
What separates 0.8% from 2.5%: List quality. The same mail piece to an AI-scored list vs a generic absentee list shows 2-3x response difference.
Channel #2: Cold Calling (High-Intent Follow-Up)
Cold calling adds velocity - you get answers immediately instead of waiting for mail responses.
Realistic 2025 benchmarks: - Contact rate: 12-18% (of dials) - Lead conversion: 8-15% (of contacts) - Dials needed per deal: 800-1,200 - VA cost per dial: $0.08-0.15 - In-house cost per dial: $0.25-0.40
Client Results
“We tested identical lists with single-channel vs multi-channel sequences. Mail-only: 0.9% response, 2 deals from 5,000 pieces. Mail + call + SMS: 1.8% response, 4 deals from same 5,000 pieces. Same list, same offer, double the results.”
— Tampa investor, 78 deals/year
When to call: - After mail piece should have arrived (day 5-7) - Non-responders from previous mail touches - High-score leads from AI targeting - Warm leads who responded but didn't convert
When NOT to call: - Cold outreach to unscrubbed lists (DNC risk) - Markets with heavy calling saturation - Without proper skip trace data
Channel #3: SMS (Warm Follow-Up Only)
SMS has changed dramatically. Use it carefully or skip it entirely.
The honest reality: - Carrier filtering blocks 20-40% of investor texts - TCPA violations: $500-1,500 per message - Cold SMS response rates have dropped below 1% in most markets - Best use: follow-up to mail responders and warm leads
When SMS works: - Following up mail respondents (8-15% reply rate) - Scheduling confirmation ("Calling you in 10 min") - Warm lead nurture (people who've engaged before)
When SMS backfires: - Cold outreach to purchased lists - Any texting without documented consent - Markets with heavy investor SMS saturation
The Optimal Sequence
Based on performance data from operators doing 50+ deals/year:
Week 1: Establish Presence - **Day 1:** Mail piece arrives - **Day 5-7:** Cold call attempt (mail should be received)
Week 2: Follow Up - **Day 10:** Second mail piece (different messaging/format) - **Day 12-14:** Second call attempt to non-contacts
Week 3-4: Persistence - **Day 17:** SMS to call non-answers only ("Tried calling about [Address]") - **Day 21:** Third call attempt - **Day 28:** Final mail piece
Month 2+: Nurture - Monthly mail touch (different creative) - Quarterly call attempt - Re-score list and remove non-movers
Budget Allocation Framework
For operators spending $5,000+/month on marketing:
| Component | % of Budget | Why |
|---|---|---|
| List/Data | 25-35% | This is where ROI is won or lost |
| Direct Mail | 40-50% | Primary channel, scalable, compliant |
| Cold Calling | 15-25% | High-velocity follow-up |
| SMS | 0-10% | Only if compliant warm follow-up |
The mistake most operators make: Spending 80% on mail execution and 20% on data. Flip it: spend more on targeting, less on volume.
Tracking Attribution
Know which channel closed the deal, not just which generated the lead.
Multi-touch attribution model: - First touch: Which channel made initial contact? - Last touch: Which channel triggered the callback? - Weighted: Distribute credit across sequence
Practical tracking: - Ask on every call: "How did you hear about us?" - Use unique phone numbers per channel - Track full sequence history in CRM