WHEN IS THE BEST TIME TO INVEST IN MORE MARKETING?
This podcast is all about you the real estate investor or someone who’s looking to get started or someone who is looking to scale their business. Now I’m going to again actually take a subject that I was asked about, about one of my high level elite students, the students, I basically break it up into two I have kind of newbies, and they go through a level up coaching program. And then I have the elite that go through an elite coaching program. This actually was asked to me by one of my elite members that I want you the newbie and or inexperienced investor to know.
𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩
The question goes, when is the right time to pour gas on marketing in bringing a lot more leads. And I had to sit there and think about it for a second. Because I’m an aggressive personality when it comes to this business, I like more leads, the better. But I have one criteria that I need you to know, for you to make the right decision for you. And that is how much time do you have to allocate to working those leads. Now, if you are a solopreneur, this specifically affects you, you have one or two ways to handle this a, you’re going to spend your time or you’re going to spend money driving in these leads. So let’s just say you have the money to pour gas on it, you are going to go find your American Express card and you’re just going to run it and put $20,000 into marketing and pour gas on your leads. That is great. And while you have the money to do that, do you have the time to handle the leads? Because one thing I know to be true, roughly 60 to 80 leads per acquisition person, that’s the sweet spot anything over that. And 80 is really capping it out anything over that you’re actually not helping them work efficiently and effectively, you’re actually going to hurt them, are they still going to be able to get deals are they still going to get the low hanging fruit? Absolutely. But they’re also going to feel a tad bit overwhelmed. Because not only do they have these leads for this month, and they’re putting someone in nurture program, and they have to nurture them over the next coming days, weeks and months. But they have another 60 to 80 coming next month, and the next month and the next month. And meanwhile they’re continuing to put these leads into some level of nurture and contract deals, you are really actually hurting them. So here’s the answer that you should be looking at or you should be considering? Do you have enough money in viability in terms of profit to start hiring? Or if you don’t? Are you actually able to convert better, right? So he specifically then went in to say, I really want to start cold calling, I want to be able to bring in, you know, five to 10 more leads each and every day. And now this person is looking to hire another acquisition person. So I said until you can get there. My advice is not to pour gas on it yet. But to maybe use some higher motivation type marketing, such as pay per click advertising, to bring in better qualified leads that don’t have the volume. As a wholesaler as an investor that does their own marketing. Understand this cold calling and text messaging can help you go wide and reach more people. It also brings you more opportunity. However, you have a lack of motivation typically, because you’re doing what I consider to be outbound marketing, you’re doing proactive marketing. And so for me, I would tell someone who’s looking to get more deals done and has a budget. I like pay per click advertising as a better route. Is it more expensive? Yes, but I can tell you right now I’ve started doing our own in house nationally, and it’s working. Now I will tell you if you’re looking to do pay per click advertising in one market, your market, the very best company there is hands down is geo flip geo flip.com. Let him know I sent you I think they make you fill out a form you can say Hey, I heard about you through Justin cobia the science of flipping geo flip is that company for you. But if you are looking to go nationally like we’ve started do we We’re actually doing it ourselves. And what I like about it is we’re currently getting a five to 6x. So for every dollar we’re putting in, were essentially getting five or $6 out.
Now, it started slow. But this is why I advise someone it my students level to say I would rather you do that, than to go hire a cold calling company and go super wide. Because you don’t have the people to do manage the leads, right, even if you yourself are managing them. As I mentioned, the sweet spot is 60 to 80 leads at a time, that’s as much as anyone can handle. So if people are, again, not only bringing in that many leads each month, but then also having to nurture and follow up and in contract and all the other stuff that goes through to get these deals, you’re really just not doing yourself a favor at that point. Right. So it comes down to a couple things here. Again, budget, how much money you have to throw up marketing to time, how much time do you have to throw up marketing in the sense of once leads come in. And if you are high on budget and low on time, I would then go to point number three higher voted motivation less lead, that would typically be PPC, or direct mail. If you are high on time, meaning you have a good amount of time, or you have the staff something like I have, where I essentially have three acquisition people not to mention, I’ll jump in if I really need to, I have enough people that I can bring in a volume of leads. So I have money and I have time. In that sense. I love cold calling, love it to death, then if you are interested in who I’m using and all that, just send me a note writing a comment below here, if you’re watching this on YouTube. Otherwise, you can send me a note, you know, through Instagram or Facebook or whatnot. Right now I’m happy to put together who I use for cold calling. But again, if you’re low on that, you know time constraint, then I need to know that you need to go to higher higher volume, right, higher, more motivated volume. So I would Sorry, I’m laughing guys, I was just trying to get ahold of my videographer, and she won’t get off her phone. So I’m talking. So I think it is really important for you to understand your own strengths. And for you to understand where you’re at financially, for those that are just getting started. This goes right back to why I would encourage something like door knocking, right or something like calling for sale by owners because you know they’re interested in selling, right. But for those that have a little bit more budget or more time, then you got to look at what kind of resources you have, you’re going to spend one or the other or summer you’re going to display both, you’re gonna spend money, you’re gonna spend time, that’s okay, just be realistic with yourself. Because if you’re at a certain level, you also can hire. And that’s the next phase. Right? That’s really scaling. Now, I would caution anyone hiring acquisition first, I just don’t believe that is the right play, do not go out and just start trying to hire acquisitions, go out and do the work yourself, make a bunch of money yourself, right? Like my benchmark is about 250 grand. If you’re not putting 250 grand in your pocket, you shouldn’t be hiring an acquisition person, because that person is going to make a commission, right 20% commission of 100 grand is 20 grand. That’s a lot, right. So you’re going to be giving away a lot, I would actually rather you do it yourself. Now once you start to put some money in your pocket, then we can start talking about hiring. But synopsize, if you will, if that’s even a frickin word. I don’t know if it is or not. But to put a synopsis on this. I want you to take a look your bank account in terms of how much money you have and how much time you have. If you have more time, awesome, then you can actually be doing the work again, I like door knocking I like calling you don’t need to hire if you have more money than you have time you can hire these things out. But ultimately look at the time because you also need to know you can’t just pour leads on that’s not the ticket here. I love that. But if you’re not working then effectively you’re literally just torching money, right. But if you are in do have the ability to pour leads on I love cold calling as the resource for you. Above all else. If you have more money less time pay per click advertising is my go to along with direct mail direct mail is still viable. I don’t talk as much as I used to about it because the callback ratio has gone so far down, but it’s still very viable and you can still do very, very well with direct mail. So hopefully this helped you guys it came directly from one of my elite students. If you have any interest in being a student of mine, go to the science flipping comm fill out a very simple form. One of my top advisors will get back with you to see if I’m a good fit for you. And besides that, guys, I’m going to knock out another podcast right now. So I’ll talk to you guys on the next podcast episode. Peace.