Marketing is one of the key pillars of a real estate business and it’s important to figure out which strategies work best for you. Strategies can be broken down into either proactive or reactive approaches. Cold calling and texting are solid examples of proactive outreach. Passive strategies like Facebook pay-per-click (PPC) and direct mail are considered reactive strategies. Whether you farm out the work to a VA or you do it yourself, the most important thing is that it gets done. In real estate, marketing keeps feeding the machine, so you have a constant flow of leads and opportunities.
Many people are experiencing success with direct mail, but response rates depend largely on your targeted location. Texting is another popular strategy, but new laws may make outreach a bit more difficult and deliverability rates can be inconsistent at times. The recent changes to Facebook PPC have led folks to move towards casting a nationwide net instead of targeting specific regions. No matter which strategy you choose, make sure you’re tracking your KPIs so you can do more of what works and get rid of what doesn’t. Being able to pivot quickly directly influences your success.
Hey, guys, how you doing, Gavin Timms with REI Network. Welcome back for another episode. Today, I am going to be talking about the marketing is actually working today in my business. Now, I'm going to be breaking down why I choose what I do in my marketing methods and why I do it. I'm going to break all that down for you in today's episode just before we get going. Make sure you give me a like subscribe. Okay, share this to as many people as possible. That would be awesome. I appreciate you all again for watching and checking these videos out.
So let's go straight in about marks in the work today. Now we have proactive, reactive marketing. OK. They all kind of your choices, right? Proactive. Meaning they're your forms of door knocking. OK? Cold call and text message in right away. You actually got to go out and you create the lead yourself in a proactive way, right? And then you have the reactive marketing, which would be more like direct mail, Facebook PPC, which is pay per click. They would be more than message where then people are calling you to sell, maybe calling off your yell or your postcard or getting your online presence or your Facebook ads. They're going to be calling you now. Obviously, they are a better quality of lead. I'm not going to deny that, but you have to look at the costs of that, but going to kind of look and talk about that as we go through this now. My number one source of marketing still to this day has been since probably the last four years is cold. Call it for me. So what I do is I go and call list and different types of list could be absentee owners tax delinquent code violation. It could be water shutoffs, whatever I can get my hands on. There's no such thing when it comes to cold calling. I guess in Texas, where you have niche lists, right? You can create niche lists still, but you need volume when it comes to them. Proactive marketing pieces because if you're using Dillard's and Vas, you're going to burn through a lot of data, so you need to keep seed in the machine. I teach this where just think of it as like, you build the machine and then you keep feeding it records and it keeps spitting out leads.
And that's kind of how I have it built, especially in cold calling. So I have four or five cold call VAs that are calling in multiple markets for me, generating leads every single day of my lead. By then, that keeps them lists and keeps refreshing them list, bringing them into the system. And I can literally operate in any market, generate leads in any market within probably twenty four hours. So that just gives me time to pull the list. I would say probably the same day, but let's just say the next day, that's how quickly that I can feed the data to that system and then it keeps giving me leads, and that is my number one. That's why I like cold calling. Okay, and if you're brand new, sometimes you can't afford Vas right now, so you want to get you've got to do it yourself, right? I talk in episodes about how powerful the phone is and you and you'll never beat it, right? You'll never beat the personal touch of personal conversation with your sellers actually identifying what them call things. All right, their motivation situation that timeline the condition of that property, that price, right? How long do they want? Are they trying to sell fast? Have they got time? What's the condition? All of these things that a cold call is going to be finding out for you so when you get on, you go deeper into that conversation and then obviously make that offer.
So cold calling is still kind of said my number one one I think everyone should be doing. And it's something that you can outsource very easily to a VA that you're going to be paying about five dollars an hour. You know, they might work four hours each. You could have two or three or four or five of them as you build and you're then generating leads that way. All right, then there's texting, now texting's something I've just got recently, I find that it is now very difficult from the legality side and also the deliverability rate. So a lot of the companies now the tech companies are now making you jump through a lot of hoops from the from the legality standpoint, I don't blame them because they don't want us to get in trouble. But by doing that now the deliverability rate is dropping. We have to fill up that language in in the text message. And it becomes very difficult because if I'm sending out 600, 700 800 text messages, I'm getting one lead and I'm paying the VA to do it. And then all of them aren't even getting delivered, then it's a problem. It's frustrating and it's a constant thing that I have been working on with my clients. Like, like every day, something else, something different, and it's been a real struggle. So I think if you're if you're doing maybe a hundred text is a day to a list like a drive in for dollars and you're spreading it out over several hours. And I'm sure you're going to be fine if you're going to the platforms where you send out a lot of text messages to try and stay compliant. The deliverability rate sucks, which means I'm the lead flow drops, which means your cost of lead goes up. That is why right now, until I have a better solution, I have stopped text messaging and I'm not talking about. I'm just talking about getting proactive outbound text messaging, not text messaging when that in the system. So let me just clarify that if it comes in as a lead and we've had conversations and I take some is completely different to pulling a skip tracing and then outbound text taxing it. So I'm not saying then it's dead. I'm just saying that I'm not currently using it because of dumb things.
OK then we have direct mail. Direct mail is coming back around. You know, your response rates depend on where you are in the country are probably going to be any between half a percent and one percent as a rule of thumb. So you've got to make sure that you are doing enough mail to warrant getting some phone calls in, still bring them in the pipeline. They will close faster, but you need to make sure that you're staying profitable. So you need to be tracking your KPIs, which your key performance indicators to make sure you know which marketing channel is working. And that goes for cold calling, texting, direct mail, and all of the platforms you need. There's no point going great, we just made 20 grand what we spent eighteen thousand do in it and you made it two thousand dollar profit. That's obviously not good enough. You can't run a business that way, so you need to be tracking these numbers. But direct mail is a good, reactive marketing piece where they're calling you with the stress. Sometimes it's going to be Take me off the list. Email me again. We will get some activity now. You just got to think one percent off, depending on where you are in the country. Not many people will get overrun. Maybe you all that great. Good for you. And I'm talking about houses, not land here. I'm talking just houses for them da mouthpieces. When we do land, we do see a higher response rate, maybe like two three percent with the direct mail, but less people are probably hitting them. OK, so but for the houses, that's kind of what you're looking at. So you can't be doing 50 pieces a week unless again is to a niche less with personal messaging. That's different. But if we're doing massive two thousand three four five thousand that kind of ought to be your response rates, again, you need to be tracking what's coming in. It is nice when they're calling you and you're not calling them.
So I will say that on the on the cold call in in the tech front, you're going to be looking at about 90 percent or more of a follow up to get deals done because you're reaching people that are really cold. That's why it's cold call and it is a cold lead. They've not even thought about selling, but you will hit the home runs as well, where you can make a lot of money really, really quickly. So that's on direct mail. Then we move into Facebook and PPC now Facebook and PPC over the last probably four or five six months, it's changed dramatically. What you'll see is a lot of people in our industry, some of the top wholesalers in the country, I'll go in nationwide. Well, why are they doing that is because the cost per lead of PPC on Facebook, it becomes very difficult. When you try as cold, call it, I can literally narrow it down into an into a subdivision. I can go into a zip code, I can go into a county, go narrow and deep within that county, and then zip codes to generate leads. Now, when it comes to PPC and Facebook, you're going to pay a lot of money to be able to do that. That's why the nation model started to go because we could get them the cost per lead, right? For instance, PPC may have gone from, let's say, Phpenix, because that's where I'm same right now, with probably five five fifty per lead on PPC for Phoenix if you are marketing Phoenix. If you go nationwide or let's say, over six, seven, eight states, you're probably looking at about eighty five dollars per lead. So you can see the difference there of why it was a play, not because people wanted to do nationwide. Some did, some didn't, because we can't survive doing it at this cost per lead. We're not making enough profit margin to keep the business going, so therefore they will go to that national model. And that's the same again with Facebook. So you'll see people in our industry teaching it again. It's something that I don't teach I don't know enough about. I would recommend, especially with Facebook, that you go in and PPC that you go and actually hire someone to run them ads and campaigns for you. It might cost you a thousand fifteen hundred is a retainer, but it's worth every penny because the algorithm is changing. Videos will be shot down and you will have absolutely no idea why you're going to spend hours a day trying to figure it out. And again, if you're not on the phone, you're not making offers, you're not making any money. So it is worth a thousand fifteen hundred dollars spent to make sure that you get rid of that. Okay, so you need to understand if you're doing that, that nationwide model. What does that bring? What are the problems? Does that bring? It's actually easier, believe it or not, from an acquisition standpoint.
So to find motivation, it's easier to lock up deals is easier because obviously you're going wide. But the problem is his disposition. Actually selling the property can be a lot harder on a nationwide model. Just just think about it when I'm cold calling in my counties or in my zip codes, I already have relationships with buyers that I know what they want. I know what they're buying, and I can then get a deal and sell it to them. And it happens pretty nicely and easily. If I go nationwide, I might be in California, one minute Florida, the next Mississippi, the next Kansas, Saint Louis. And obviously, I can't go and prep buyers in all of these places because it doesn't make sense when I don't know where the leads are going to come in at. So you do need better negotiation skills a lot the deals, but they are easier again because you're going to find more motivation, but then when it comes to disposition, you're not going to be able to move the deals as fast is going to even after then dig in, find network with realtors, property managers, wholesalers, cash buyers in that area where that property is to then get it move. You're going to have to keep looking for new tile companies unless you do a nationwide tile company. And I have mixed reviews on that. I think they are. They can be good because they'll close everywhere, but they're not as efficient. They're not fast as a rule of thumb, in my opinion, that I've seen. This is your local one. So that's just a few things that you need to be considering when you're doing PPC. So you've got to be better on the phone in terms of diverse to the high end markets, low end, depending on obviously where you're picking on what states to go nationwide, you've got to be better on the phone. Easier to lock up deals. Harder to move them. You're going to have to focus more on this boat to get paid, but it definitely is a model. But I just don't see, especially if you're new, you coming in and going, I'm going to focus on Phoenix for Facebook ads because you going to pay through the roof or you're not going to get any leads. So back when Facebook started, you could be spending five dollars a day, 20 books a day and you began to couple two or three leads. It is a lot of that anymore. Obviously, more people are doing it and the prices shoot up, so. And that's the same for PPC as well. PPC is probably going to cost more than Facebook. Yeah, it's probably the most. The highest cost per lead is PPC. But again, when people are googling you, my how fast they all better leads. But you have to answer that phone immediately because the internet gets what it does when you search my. How fast do it in your area right now, boom. Several come up. You go call one. They don't answer, you call second, and you're going to go to whoever answers and they're the ones they're going to get the deals. If you're going to do a PPC, you've got to get on the phone immediately, call and bite directly or answering the phone line.
And that's the same really, not just the PPC, but also video, email and Facebook ads you've got to be answering really quickly to to be able to do that. And that's why, for me, I like the cold calling aspect and I did used to light the text and niche. And then some of the die may OK, because I can really focus on what I want, what my buyers want, what I'm looking for, if I'm looking to flip will take properties, not myself. I can really be niche in that. OK, then obviously another one should be networking. That goes to say Networking is where is at. You've got to be networking. It doesn't matter if your virtual local, it doesn't matter if you're you should be meeting local people, even if you are virtual because there's always lead. Someone knows someone leads to more money and your network is everything. I've moved so many deals from communication and network because the people that I know for clients from me, my business, if I can call on people in the industry that I know in the markets, I can get deals done. And that's what my goal is for my coaching clients is if they bring me a deal, I don't always stay in the middle. It might sound silly, but my goal is number one is to get the deal done for them. If I have to remove myself because I have a contract there where they have buyers and they can move it faster, then I'll put them together to get the deal done. Obviously, I don't make any money, but I've done my job and I've got deals done for a client is paying me right. So I thought that's just that's just the way I like to do it personally.
OK, so anyway, hopefully this helps with that is what's going on in my business. That's what I see in the marketing right now with what's happening. And again, any feedback, any disagreements, anything you want to add, whatever it is, again, it's just an opinion. But drop him in the comments, OK? Make sure you like subscribe. Your interest in work and we go to REI network dot com slash join and we can get on the phone and talk about that as well. All right, guys, appreciate you have a good week and I will talk to you soon.