If you are a direct mail marketer, you probably have already got an idea of what works best for you. If part of “what works” includes continuous testing and experimentation, then you might find a new product from the United States Postal Service quite intriguing: photo stamps.

One strategy that many direct mailers find effective is to make the piece look as personal as possible. In other words, hand-written addresses instead of computer printed addresses, hand-written return addresses instead of printed, and stamps instead of machine-printed postage.

Photo stamps can add another level of personalization to your mail pieces by allowing you to put your picture on every stamp, in a larger size than a standard stamp.

In addition to added personalization, having your personal photograph on your stamps could also help draw attention to the piece simply because custom photos on stamps is a relatively new concept – they would almost certainly stand out.

Stamps.com will allow you to upload any image you want, manipulate it, and order directly from the site. These stamps are more expensive (about twice the normal cost), but overall may yield a higher ROI on your marketing dollar.

What do you think about using photo stamps in your direct mail marketing efforts?

Marketing to a niche is my favorite way to get results. Why? Because you know better what your target customers need and want, compared to simply marketing to the general public. The more you know, the better you can tweak your marketing message and boost your return on investment (ROI). Niche marketing applies to many businesses but following is a list of eleven niches specific to originating mortgages:

1. Purchase Loans. We start with one of the basics. You can
   find subsets of niches within the purchase niche like FSBOs, Investment Properties, Land/Farms/Ranches, and referrals from Realtors. The various sub-niches represent a different group to whom you can market, all of which have different needs and interests, therefore they will likely respond differently to your marketing materials.
    
2. Construction Loans. Much like purchases, construction loans have sub-niches like Custom Home Builders, Subdividers, Condo/PUD Builders, Owner-Builders, Second Home/Vacation Home Builders.
    
3. Loans for Home Repairs. I considered including this in the construction niche, but decided it deserves a classification of it’s own. There are a wide variety of needs home owners might have when it comes to home repairs, including: updating roofs, windows, doors, heating, air conditioning, or other worn or outdated basics of the home. Home Repair customers might also be interested in finishing a basement, remodeling an area of their home, or adding a pool in the backyard. All these repairs and updates require money. Imagine the opportunity of networking with roofers, HVAC companies, window and door companies, etc. They have customers that need the money you can provide them.
    
4. Converting ARMs. This particular niche is hot right now, with rates on the rise and many ARMs set to make their first rate adjustment in the near future. You can get a list of borrowers with ARMs from your local county records and set up a simple mail merge in Microsoft Word to send a customized letter reminding the borrowers that their rate may soon increase. The more targeted you get, the better.
    
5. Mobile / Manufactured Home Loans. I decided to make this it’s own niche because there is a good amount of demand for loans on these properties, yet they seem to be fairly hard to place. If you can find a good lender or two with some good programs for manufactured homes, you can make a nice living focusing on these types of loans.
    
6. Foreclosure Bailout Loans. Yet another niche that requires knowing what wholesale programs are available to fund these loans. Find some good ones and you can make a good living working this niche.
    
7. Chapter 13 Bankruptcy Loans. FHA is your best friend when it comes to Chapter 13 BKs. Study up on the requirements under FHA and find other wholesale programs that allow recent BKs and you’re well on your way to working a solid niche. Here’s a direct quote from HUD’s website:
   

   A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower’s payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

    

8. Debt Consolidation Loans. This niche is almost too big to be called a niche, but it can’t be forgotten. The only problem I have with this one is that it’s one of the most competitive.
    
9. Cash-Out Loans. Same deal for this niche – not very specific and could probably be combined with debt consolidation.
    
10. Rate and Term Refis. Perhaps "refis" should be the niche with debt consolidation, cash-out, and rate & term as the sub-niches. However, it is probably easier to find data that will allow you to target borrowers eligible for rate & terms than it would be to find those interested in debt consolidation or plain old cash-out refis.
     
11. FHA Streamline Refis. This is it’s own niche because of the nature of the FHA Streamline. Easy, fast, and somewhat neglected. Loan Officers can do well focusing on this niche.

Do you work any other niches not listed here?

The most powerful headline I ever read and acted upon was a negative headline. It changed my life.Yet most books on direct mail copywriting will tell you to cast your headlines, overlines and Johnson Boxes always in the positive. But sometimes being negative is positively good for business. Or, to say it another way, negative headlines in your direct mail advertising are not always bad.

The headline that changed my life appeared in a small display ad in the Daily Mirror, a British daily newspaper. Here’s what it said:

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Do you think sales is a numbers game? Many very smart loan officers think that the way to increase their loan pipelines and to increase their loan closings is to simply increase the amount of mail they send to prospects… they couldn’t be further from the truth.

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