There are so many ways to spread the word about your investing business. So. Many. Ways. So what’s the best approach to reach buyers, sellers, and lenders? Does it even matter?
If you’re like me, you want to know that the money you spend on marketing is making a difference to your business. Otherwise, why do it? But how do you figure out what kind of impact your dollars have on your deals?
Let’s explore those questions together…
But first, a little about me and why I care about marketing.
About Me
Hey Moguls, Dolmar Cross here!
Like many of you, I have struggled in my real estate investing career. Early on, I struggled to get my investing business off the ground. Later, when the market crashed in ’08 I lost everything and found myself struggling again.
But I bounced back. I learned that fierce determination, raw persistence and solid advice from friends and mentors can get you where you need to go.
Because – and I hope my kids have learned this from me – when things get hard, we don’t just quit.
We fight on.
Sometimes those hard things lead us to even better places, too. After the market crash I was desperate to get good property leads without spending any money. And out of that desperation my Property Scout Pipeline was born. (Property scouts is the term I like to use for bird dogs.)
Today, I have flipped over 100 properties… and I only work about 15 hours a week.
So let’s dive into just how to get off the ground (or back off the ground) and find the leads and deals you need to be a successful investor.
Marketing Is Everything
Marketing mastery is absolutely critical to success in real estate. If you don’t become a market wizard, you won’t succeed. It’s that simple.
Your first marketing investment should be your time. Study marketing as if your future in real estate depends on it. Because it does.
A sweet-talking investor with a knack for drafting a honey of a deal can still fail. He will fail if he can’t understand what makes buyers buy and sellers sell. He will fail if he can’t use that information to effectively market and reach buyers and sellers in ways that matter to them.
That’s because he won’t have anyone to talk to or draft deals for. Those skills are worthless without leads. And there are no leads without marketing.
So you might even say (I definitely say it), you’re not just in the real estate investing business – you’re in the marketing business.
Your second marketing investment is your money. You cannot skimp on your marketing budget. If you do, you are destined for failure. You need to invest and market for buyers, sellers and lenders.
But good news—this is the 21st century. With the internet, you have multiple powerful, cost-effective marketing solutions right at your fingertips. And the strategies that cost the most aren’t always the best.
So how do you know what marketing strategies to use?
Recognize Good Marketing by Tracking
You want the least expensive marketing strategies that give you the most leads and deals. And the best way to find those strategies is to keep a marketing portfolio.
Use your portfolio to record your marketing efforts and their results. List your costs, leads and deals. Then use those numbers to figure out your cost per lead and your cost per deal for each marketing strategy.
Compare these 2 portfolio entries below:
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The first table is based on direct mail marketing.
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The second table is based on marketing using property scouts.
Which one has a better return on investment?
(* “Total Cost” is based on monthly membership access to the Property Scout Pipeline system.)
What’s Your Marketing Goal?
Of course you want to generate the most leads and deals per dollar you spend on your marketing. But can you make a more specific goal? For every $1 spent on marketing, how much do you want to make in return?
Once you set a goal, how do you get there?
Get feedback from investors you trust about what marketing techniques have worked for them. Do your own research on strategies to try. Then use your marketing portfolio to record the results.
If you’re diligent about recording your costs, leads and deals, you will have a clear picture of which strategies to ramp up and which to eliminate.
Why Property Scouts Boost ROI
But why start at square one if you can talk to someone who’s been there? And boy have I been there. Here’s my advice: hire property scouts. Property scouts (a.k.a. bird dogs) can produce the highest return on investment of any strategy out there.
When property scouts understand what properties and sellers you want to reach, they will get you qualified leads that you can turn into deals. And they require minimal up-front marketing costs, especially compared to methods like direct mail.
Property scouts are also a smart marketing choice because they are adaptable. And that’s all thanks to the human factor.
What’s the human factor?
Well, let’s say Suzie Scoutlady joins your program, and right out of the gate she’s submitted 30 bad property leads for every one lead worth moving on. What’s going on with Suzie? Maybe she misunderstood what you were looking for. Or maybe she was focusing on the wrong part of town.
To fix the problem, give Suzie a call and get her back on track. This instantly improves her ratio. And her ratio will continue to improve as you build a relationship with her and give her more training – generating even more profits for you over time.
Compare that to bandit signs, direct mail and other methods... diagnosing problems with those and fixing them takes time, money and energy. Managing more traditional marketing methods is like turning an ocean liner. Managing property scouts is like turning a jet-ski.
Whatcha Think?
Do you keep track of your returns on marketing investments? What did those numbers tell you? Let us know!
1. Start a marketing portfolio. Right. Now.
2. Set a goal for your marketing return on investment (dollars spent per deal).
3. Research new marketing techniques (especially property scouts). Talk to other investors you trust about what works for them.
4. Track future marketing costs.
Dolmar Cross
Dolmar is a guy who struggled, at first, to get his investing business off the ground. But, thanks to some fierce determination, raw persistence, and a savvy mentor’s friendly guidance and help, he eventually starting making it happen.
But the money went right to his head; he started splurging… snazzy luxury cars, taking friends on lavish trips. He thought he was on top of the world and could do no wrong. Unfortunately that’s when it usually all hits the fan—which is exactly what happened to Dolmar.
When the market crashed in ’08 Dolmar lost everything (literally – everything; he had to file for bankruptcy). Discouraged, he met with an investor who gave him some powerful insight, basically kicked his butt back into dusting himself off and getting right back to it – for the sake of his kids – to teach them that when things get hard, we don’t just quit. We fight on.
So with this powerful, new mindset and very little money left, Dolmar found himself with a sincere need to get good property leads without spending any money. Thus sparked the inspiration for the Property Scout Pipeline.