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Federal Tax Liens Lists: Not Just For Tax Resolution

The average individual (1040) tax debtor for whom a federal tax lien is filed has approximately three years of unfiled tax returns that they will need prepared. As tax return filing season begins, it is a good idea to remind you that tax lien lists can be used to obtain new tax return clients, not just tax debt resolution clients.

By specifically targeting your direct mail marketing in particular to 1040 tax liens in your local area, you can bring in new 1040 return clients without ever even mentioning the tax lien, the tax debt situation, or even the unfiled returns.

The offer of reviewing the previous three years of tax returns has been a very successful marketing tactic for national tax return preparation franchises. When marketing to tax lien lists with a similar offer, you are reaching out to a target market that is more in need of this service than just about anybody else out there. Offering a free review of previous years of tax returns will speak to this market, and you never even have to mention the tax debt situation.

Since you can get market intelligently without mentioning the tax debt, sending postcards to federal tax lien lists of individuals with a tax lien filed against them will not seem unusual or raise any “red flags” in the prospect, since they …
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Why mail multiple times to the same lien?

The vast majority of times, with very rare exceptions, you’re going to want to mail multiple times to every tax lien you contact. Why is this?

Let’s consider an example of one hit vs. multi-hit mailing. For approximately the same amount of money, you can send a mailer to 20,000 tax liens one time, or send 8 mailers to 2,500 mailers. If you get a 1% response rate from a one-time mailing, this is considered on the better side of things in the direct marketing world.

A 1% response rate to 20,000 mailers sent one time produces 200 prospects.

For multiple mailers, response rate compounds over time. Studies going back many decades demonstrate over and over that the majority of people respond AFTER the 5th contact attempt. If the aggregate response rate across 8 mailings is 10%, then we have 254 prospects to work with. This is 25% MORE prospects for the same marketing expenditure.

Most multi-hit mailings are built to be sequential, meaning that each mailing piece builds from the previous. This is an incredibly effective way to maximize the return on investment from your lead purchases.