How you market and who you are marketing to will be a big deciding factor on whether your business will be a success or failure. You can have the best product in the world but without the right marketing in place who will know about it? Nobody!!
Business’ are well known because of their advertising and marketing techniques. They spend millions every year to make sure customers find them in hopes will return to keep their business up and running.
Real estate investors know that finding deals is a extremely important aspect of their business. You want to have your phone ringing with new leads everyday. Keeping your lead funnel full is a phrase I’ve had stuck in my head ever since I started this business. Mentioned in my previous post that persistent and consistent action will give you the momentum you need to stay confident and driven.
Consistent Marketing + Leads + Motivated Sellers + Making Offers = Deals
Motivated sellers are the ones you mainly want to work with. Motivated sellers is a big component that you should focus on that will definitely determine your profit spread. The sellers who are willing to sell your their house at a big discount are the ones who you truly need to help. These are the sellers that need to sell right away and are flexible when it comes to terms that will help you close the deal sooner.
I always have to keep reminding myself that its a numbers game and as long as I stick with it I’ll find the diamonds in the rough. You’ll hear this saying a lot from investors and I’ll say the same that its like digging for gold.
My understanding is that on average If I make about 25 offers to good qualified leads I’ll be able to get 1 accepted offer maybe 2. Its vital to have this kind of understanding because I am already expected of the amount of I may have to sort through and I won’t be discouraged after being declined so many times. I know that the more leads and offers I get through the more closer I am to finding that one deal.
To get your phone ringing takes a ton of time and patience. I hate to admit but my marketing efforts have been very poor. It has taken me a very long time to get through all the different types of advertising methods that I feel work not to mention who I should be targeting and what area or location I should be investing and focusing on.
My three main marketing techniques right now are:
1. Direct Mailers – My direct mail consists of using Yellow Letters and Postcards. The people I’m mailing to are Absentee owners, code violations and people who recently inherited a property. I’ve learned that you need well sized budget if you decide to go this route because to obtain the mailing costs money same goes for printing and shipping of the yellow letters and postcards. My experience is yellow letters will bring in a better response rate than the postcards. The secret I’ve learned is you have to mail to your list 4 to 7 times until you get a good amount of call back. This is where the price for direct mail can be very expensive.
2. Website – I’ve been working on this website for the last few years with a good friend of mine and one of his interns. I made the site to be able to reach out to homeowners who were looking for a way out of their housing situation. Right now I’m working on getting my site to the top of google through organic results also known as Search Engine Optimization (SEO). As well as social sharing and Paid per click (PPC) advertising. Its definitely a ton of work but I’m making sure that I work on it day by day.
3. Bandit Signs – Bandit signs are usually 12×18 or 18×24 investors put them up around busy intersections that read “We Buy Houses For Cash” or “Stop Foreclosure Call Now”.These nifty little signs can give you the most bang for your buck.
I have not been able to use bandit signs yet but have learned everything I need to know that they are great marketing pieces. I plan on setting up about 20-30 signs over a weekend in specific areas. I’ve heard that these signs bring in calls as long as you keep putting them up, the more eyes that see the signs the better. Bandit signs in general may not bring in qualified leads but the experience I’ll gain from speaking with sellers will be priceless.
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