The key to success in real estate investing is marketing. In fact, I often tell people that “we aren’t in the real estate business, we’re in the marketing business.”
In order to have a steady flow of income, you’re going to need a steady flow of leads. The way to do this is to talk to five leads every day. It’s really that simple, but you have to make yourself do it. Even if only one or two of those leads a week want to talk about a deal, you’re planting the seeds and building the momentum. When you do your follow-up, those other leads are going to pay off, too.
It’s also extremely important to have realistic goals if you want to be happy in this business. There’s no point in making a million dollars a year if you’re stressed out of your mind about it. Using a simple spreadsheet, I show you how you can live a great, happy life with much less than that. If you look at what you want to achieve and work backward, you can determine exactly how much you need to be bringing in every month.
And finally, I show you how to make a scorecard so that you can stay on target every day. And, if you send that scorecard to someone else, they can help to hold you accountable and keep you moving toward success.
Welcome. This is the Real Estate Investing Mastery podcast.
All right, guys, what's going on, Joe McCall here hope you are doing well, this is the REI Secrets webinar series. And in this secret, REI Secrets webinar series, it's not secret. I'm going to be sharing with you something really powerful. This one I'm going to be talking about marketing plans.
Why marketing plans? What are they why are they important? And what's the big deal about a plan or scorecard? Let me just say this. Marketing is everything in this business and everything is marketing, OK? We're not in the real estate investing business. We are in the marketing business, plain and simple. And so I'm going to give you a real simple plan here, and I'm going to be sharing my screen with you. Obviously, you might be watching this or listening to this on a podcast or my YouTube channel. I'll do my best to share with you. In fact, let's do this I'll write this down. If you're watching this on YouTube, then I'll put a link to it down below that. You can play with it, OK? And it's a Google sheet, so which means I'll just give you a link. You can view it, but if you want to use it, you'll need to go to file, make a copy or download it as a spreadsheet. I'll talk about that in a second here.
So I'm going to share with you a couple of things from this. How to start from your goals and work backwards because everybody has a goal. If I ask people how much you want to make, it's either a million bucks or it's either ten grand a month or whatever. Well, that's we can't do anything with that, you know what I mean? It's like, yeah, we want to make a million dollars. But why? Why, Melinda, why not two million? Why not five hundred thousand? I mean, I write this phrase down stress free abundance. I love that phrase. OK, I heard Frank Curran one time talk about it and we want to make a lot of money. But how much would it suck to make a lot of money and have a ton of stress with it? OK, we don't need to have a huge business that is cranking a bunch of money, but like we're living paycheck to paycheck or hand-to-mouth or what's the word we have more week than paycheck at the end of the week or something like that. Right. We don't want that stinks. You don't want to be making a million dollars a year, but your expenses are like nine hundred ninety nine thousand nine hundred ninety dollars a year. You only have ten dollar margin there a year. Like, you don't want that. And you see a lot of these people that brag talk about how many properties they have, how much money they're making. They show you these big fat checks of like twenty thousand dollars. You're like, oh, wow, it's so awesome to be like you.
But what you don't see is in the background, how much overhead they have, how much stress they have, how many hours they're working out there. They're working one hundred hours just so they don't have to work. Forty. What's the point in that? Right. So I like to have what I call stress free abundance. Let's create a marketing plan for our business that gives us a lifestyle that we would want to live, not another job that we own. Right. Let's create a marketing plan around things that we can control of so we don't want to have a stressful life. We want to have a life of stress free abundance. We're making good money, but there's no stress with it. It's like easy money, right? That's just I would much rather make one hundred two hundred grand a year. Right. And live below my means. You have a nice house, no debt, and then be so much better than a million dollars a year. Two, three, five million dollars. Your business with a huge team, lots of overhead stress marketing, the taxes. You don't want all that.
You saw me talk on a previous video before about how I paid off five hundred and twenty thousand dollars in a federal tax lean, not a tax bill, but a lean that was attached to my properties, plural paid that off. Right. So the more money you make, bigger problem, bigger business, bigger problems, higher levels with the how does that phrase go? New higher levels. Higher levels like what I'm saying, the bigger business gets, the bigger problems get. So we're going to create a plan based on a level of income that's going to provide you stress free abundance so we can make one hundred grand a year. But like, how do you do that? You can't control that. But what you can control is like breaking that down from revenue to deals to leads to marketing. Now we know. OK, well, all right.
We're going to do one hundred grand a year. We need to talk to five sellers a day. Right. We need to send out 20 letters a day, 50 text messages a day, two hours of cold calling a day. Send out five thousand postcards a month so we can break those things we can't control. And you'll see this online, it makes more sense than I'm showing you my spreadsheet. We can break all that down is the things that you can't control into things that you can't control. Right. And you'll know that, OK, if this is what I need to do every day, every week, and this will force you to focus on what's most important. When I'm working with a coaching student one on one and I'm talking to them and I'm here to answer questions and solve their problems and to help them overcome their obstacles. But I keep on coming back to the scorecard. All right. Show me your scorecard. Show me your marketing plan. What why does it matter what you should do with this one deal? See, here's the problem. When we don't have a marketing plan, we become motivated. Buyers don't want to be a motivated buyer. You should have so many leads coming into your business that if this deal doesn't work out, that's fine. Just pass on it, go to the next one. Because when you're not when you don't have a big influx of leads coming and you become desperate, you become motivated. And sellers can smell that from. A mile away, if you're desperate, if you're that motivated buyer, like, got to get a deal and you only get two or three or five good leads that month, you're going to try you you're going to make mistakes. You're going to try to turn that lemons into lemonade.
You don't want to do that. We're not deal creators. We're deal finders. We're looking for deals. We're not trying to make deals happen where there shouldn't be a deal happen. So if a seller is kind of being obnoxious or giving you objections and they're they're not being very nice or whatever, you can blow them off. You've removed yourself from the outcome because this seller is not going to work with you or not interested in your lead in your deal. You can still send him an offer. You're still going to follow up, but you're like, OK, fine, that's I got 20 other people to call today. You understand? I'm saying this is the power of marketing when you've got the marketing machine running with you or without you for you, in spite of you, you get that machine going is bringing you leads every single day. Right. You can only do deals with motivated sellers. And so if you're not doing enough marketing, you're not going to get enough motivated seller.
You understand this unmotivated sellers will make you broke, motivated sellers will make you rich, and you only can find the motivated sellers. And they are out there even in this hot market right now. The only way you can find the motivated sellers is if you're doing enough marketing, if you're casting a wide enough net that those leads are coming in. So what we're going to do now is create a simple marketing plan so that you're doing enough marketing, you're spreading, you're putting out enough bait, throwing out enough fishing lines that the leads are coming in and you have many to choose from. I can tell you this. This is so important. I understand. I hope you're picking up what I'm laying down. You can fix almost all of your money problems by doing more marketing or doing the right marketing. You know what I'm saying? Like, you need money, go do some marketing, go get some leads, start talking to make an offer so it all comes down to your money.
You need to do deals. If you want to do deals, you've got to make offers. If you want to make offers, you got to talk to sellers. If you want to talk to sellers, you got to do marketing. OK, we're not chasing sellers. We're just throwing our bait out there. They're contacting us. They're responding to us. They're responding to our marketing and saying, yeah, you know what? I might be interested. OK, cool. Now we're talking because the goal is to talk to five sellers a day. Imagine if you can talk to five sellers a day. That's one hundred and twenty. One hundred and fifty depending on if you're working weekends, it's one hundred and twenty sellers a month that you're talking to. That sounds like intimidating. That's like a lot. Oh my gosh. What was just five a day and each conversation is just three to five minutes long each and you're just talking to them. Ask them about their house. You're going to send them a quick, fast offer. You're going to follow up with them every thirty days and you're going to see this in the scorecard when you start following up with one hundred and twenty sellers month to month three, you're following up with two hundred and forty one for getting my numbers mixed up. You're going to be following up three hundred and sixty sellers by the end of the year, six months you're going to be following up with hundreds and hundreds of sellers and those sellers that said no three months ago are going to start saying yes in three months from now.
So this is where it all comes back down to marketing. You need to have a marketing plan. All right. So I'm going to share with you I have a couple of different marketing scorecards. These are things that I share with my students. But this is the main one I'm going to share with you right now. And this is something all my students have. So if you don't if you're not one of my students, what's going on? You know, you can get a hold on one second. There's a good book. Here it is. Here it is. Here it is. Here it is. I wrote a book called Simple Lease Options. Let me stop my screen because I going to show you how to get the spreadsheet right now. If you're not one of my students, you need to get my course on learning how to do this. Now, this is this is mainly a marketing course. This is mainly a course on how to get leads, how to talk to sellers, how to make offers. And it just happens that most sellers are going to say no to your low cash offer. But now you can offer them a lease option or you can give this book for free by just watching my webinar. SLOclass.com. This book is called Simple Lease Options. Easiest and Fastest way to do more deals in any market. So go watch my webinar at SLOclass.com. You'll get this book for free. SLOclass.com. And in there I'm going to teach you how this marketing stuff and I must show you how to get this spreadsheet here. OK, all right.
So let me share my screen again. This is a stress free abundance lifestyle plan. Stress free abundance, lifestyle plan. Cool. Don't make this any more complicated than it needs to be. But what I what I did here and this was a this is a few years ago. Zoom in some more so you can make sure you see. So this number is probably gone up by now. I did some deep scientific research. I got a college degree. I know how to do research. I went to Google. If it's on the Internet, it must be true that the average household in the income in the United States is sixty eight grand. I think it's gone up. Let's just say it's seventy five grand and double that. So let's give ourselves an executive salary, executive salary. Let's give ourselves an executive salary of one hundred fifty grand a year. That's about twelve grand a month. Right. So let's say the average price of a home in the United States. I think this is right. I updated this recently was two hundred ninety five thousand dollars. That's the average price of an average home in the United States. Obviously, that might buy you a one bedroom shack in California, but that's pretty good. I mean, if you're complaining about housing costs and you live in California, maybe you should move somewhere else. I'm just saying, I don't know. Like I. I was born in L.A.. Raised in San Diego. In Bakersfield and lived in San Francisco, I still have family in California, so I can say all that stuff because I love Californians, I love California. But if you're complaining about not finding a place to live for three hundred grand, maybe you need to move somewhere else because you can buy a really nice house for five hundred ninety grand. Really, really nice house. So let's double the average price of the home to five hundred ninety grand.
OK, and let's just look at some this executive salary here that's going to cover your day to day living expenses. Pretty much it's going to be an executive lifestyle. It's going to get you a nice car. And so you're living in a nice executive house, 90 grand now your mortgage payment on a five hundred ninety thousand dollars house with 10 percent down. Principal interest taxes and insurance is going to be and I have some hidden columns here. I'm not sure what the interest rate on that is, but it's going to be about three grand, three grand a month. That sounds kind of high even, but a six hundred thousand dollar house, principal interest taxes and insurance, about three grand a month. Now, let's say you get a nice seventy five thousand dollar car. So your car payment on that's going to be about fourteen hundred a month if you're leasing it maybe and you're taking four vacations a year. That's right. Because you can and we're talking about stress free abundance. What good is it to make a lot of money and not take at least four vacations a year? Even if you're not going somewhere, you stay at home. Let's say you're taking a nice trip, five grand each vacation. So that's 20 grand a year. Sixteen sixty seven. All right.
So that's about eighteen thousand five hundred eighty three a month that you need to make. Now, don't forget Uncle Sam, OK? Don't forget Uncle Sam. He'll get you. That's about seventy eight grand a year in taxes. Now, that sounds a little high, but I'm not a tax guy, so don't take my things as gospel. So let's say it's going to be about it depends on your write offs and what you've got, but you've got to figure about 30 percent, 30 to thirty five percent pretax. Let's just be conservative. Let's say thirty five percent. All right. So that means you need to be making twenty five grand a month. We'll see. We're starting at the top and we're working backwards from there. So some of you are like, man, I want to make a million dollars a year. Well, what if you just made three hundred grand a year? You'd be living in a really nice house, taking four nice vacations a year, have a really nice car and be on an executive salary. Do you really need to make more than three hundred grand a year to live a rock star? Amazing lifestyle. I mean, that's awesome.
And guys, let me tell you something. It's not that hard to do. It really isn't. It's not that hard to do. Now, I can say that because I'm on the other side. I'm making well, more than that. Right. But like I remember when I was an engineer for for an electrical contractor traveling all over the country, hating my cubicle, looking at three hundred grand a year. I was like, oh, my gosh, no way. I could never do that. That's insane. Three hundred grand a year. But you know what? It's not that hard, really. It is. And let's talk about it here, because we're going to create a marketing plan for that.
So let's say your average net profit after marketing is five grand. That's your net profit after marketing. It should be higher than that. It should be like seventy five hundred after marketing. But we can play with these numbers. OK, so how many deals does that mean you need to do a month. Well three point three. All that's doing is and I'm going to kind of show you my formula here. So if you're watching this, you can recreate this part of this spreadsheet. It's not that hard. So if you if you need to gross twenty five grand a month, your average profit, net profit on the deal after marketing is about seventy five hundred. By the way, you should be planning on spending about a thousand dollars in marketing per deal, about a thousand dollars in marketing per deal. Sometimes more depends on if you're doing Pepsi cold calling, direct mail if you want to be super conservative, maybe fifteen hundred dollars in marketing per deal, but you should always be shooting degrowth ten grand wholesale fee on any deal that you do or upfront lease option, deposit, whatever you want. I'm saying you need to do three point three deals per month. Now on average, how many leads do you need per deal. Well, the better you are at this business, the fewer deals you're going to do. I mean, probably we're at twenty five leads per deal that we need right now in our land flipping business. OK, but you can do 30. Maybe if you're just getting started, be conservative. Let's do 40 leads per deal. So you need 40 leads. That means we need one hundred and thirty four leads per month. So we take three point three deals per month times forty leads. We need one hundred and thirty four leads per month. And if you break it down on a five day work week, that's about six leads a day.
And let's say we make offers on at least seventy five percent of our leads, that means we need to make four point six offers per day. If you make this thirty, that's about three offers a day, four point six leads leads a week day. So what I'm saying here is you need to talk to, at least generally speaking, at a minimum, you should be talking to five sellers a day. And we're going to be coming up with a marketing plan that's going to help you get there. Now, what do you see what we're doing here? We're breaking this down from things you can can't control, the things you can't control. You can't control making three hundred grand a year. You can't control your average net profit and seventy five hundred bucks. You can't control that. You need thirty leads to do one deal. And by the way, that's with follow up. You can't control it. You're going to you're going to need you can't get three point three deals per month. You can't control that. But what you can control guys is this right here. How many leads you're getting every day, how many offers you're making. Every day, what's the number one rule in real estate? It's make offers, make offers, make off. That's the number one rule in real estate. It's very, very simple and straightforward. All right.
So your speed to income, your speed to three hundred grand a year is directly proportional to the number of offers that you make. You're not going to make three hundred grand a year if you're not making three offers a day. Most likely in this business. What we're talking about here, on average, 10 to 15 offers a week. Just not going to happen. Again, don't come to me with your problems and telling me that this doesn't work if you've only made five offers in the last month. Of course, it's not working. OK, this isn't a hobby. This is a business. If you want to make one hundred, two hundred, three hundred grand a year, you need to treat it like a business. You need to be talking to five sellers or realtors a day and you need to be making at least three offers a week.
Write that down. Write that down. Right now, every one of you, stop the video. Stop the podcast. Write this down. I'm going to talk to five sellers a day and I'm going to be making three offers a day. Even if you only make half of that goal, that's still twice as many offers as you've probably made. I mean, we do this we do this thing called five leads in five days. It's a private little Facebook group that we do once in a while. We do another thing on. It's called a 30 day offer challenge. And we just push people really hard and teach them how to make real simple fast offers. And we we hold them accountable. We give them their money back if they make all of the offers that they said they're going to make. But we get people to tell us this all the time. I can't believe I've made more offers in the last 30 days than I've made in my entire life that I've made in the last year. This is amazing. I think even if they don't get one of their offers accepted, they're making forward progress. They're making momentum. This business is all about momentum. It's all about momentum. You have to do the things that are going to build the momentum, creating your website, buying another book, setting another course, going to another workshop, joining another mastermind, watching more YouTube videos is not going to get you to your goal. What gets you to your goal? It's not buying courses. It's buying houses. You need to start making offers.
Ninety nine percent of you guys know what you need to do already. You already know what you need to do. You just need to start doing it. You need to start talking to sellers and make an offer. So you're like, well, OK, Joe, I don't know what to do. Yeah, you do, probably. But like you're saying. All right, I understand. OK, I got it. I understand. Joe, I got to talk to five dollars a day. I need to make at least three offers a day. How? Well, I'm glad you asked. So the next tab of my spreadsheet here, I have this thing called the marketing plan. This is hypothetical. It's not a guarantee that if you do this, you know, you're going to be money rich, fall from the sky. So let's say your monthly income goal is, let's just say 20 grand gross. Your average net profit on a deal is seventy five hundred bucks. And so here you go. Just looking at this formula, you can see that and you can do this yourself if you're looking at this thing and I want that spreadsheet, how do I get that spreadsheet? If you're watching me on YouTube, I'm going to put a link to the spreadsheet down below right myself. A reminder to do that. All right. I'm going to put the link in YouTube. If you're listening to this on a podcast, I apologize because you kind of need to see this.
Go to my YouTube channel and subscribe to our YouTube channel and you can get the spreadsheet. And if you want to learn how to do this marketing, we're going to be talking about a book, Simple Lease Options. The fastest and easiest way to do more deals in any market. SLOclass.com. And link for that will be below this YouTube video as well. OK, so if you want to make 20 grand a month, your average net profit after marketing is seventy five hundred. That means you need to do two point seven deals a month. And if you need an average of let's do thirty five leads to do one deal that includes follow up, follow up takes time three six months on average, a follow up. So that means you need ninety three leads per month. You need that's about a twenty two day month, that's about four leads per week day work day. And you always our minimum is five leads so we need five leads per day and a lead in my opinion.
And this is not an exact science, it's just a general rule of thumb. A lead is anybody that responds to my market. So I wouldn't consider if you're making talking to five sellers a day, it's all. But I'd rather talk to five sellers that raise your hand, that respond to my marketing, that express an interest. That's why. Excuse me, I like texting and calling rentals, landlords, property managers and for sale by owners, sending them a text, sending them a letter. And if they call back or raise their hands, yeah, I might be interested that then I'm talking to them also. Maybe you find a house that's been on the MLS for 30, 60 days. It needs updating. You call the realtor, you email the realtor and they say, yeah, they might be negotiable in their price. That counts as a lead Right. So there's no exact science to this, but it's like don't just call five people at random and say, hey, do you want to sell your house? And that I think that counts. Right. You need to do some marketing. Do you find the people that raise their hands and express some interest?
Because write this down again, we are deal finders. We're not deal creators. We don't I don't want you to be motivated buyers looking for deals and desperate because, like, oh, man, I got to make some money. I got to make some money. And you're freaking out. You're stressing out. You're talking to sellers. And they can they can smell your greed glands and your desperation from a mile away. The harder you chase sellers, the faster they'll run. So you can't be. Desperate when you're talking to sellers and make an offer, you just got to be like this, take this or leave it. I've got 20 other people that need my money, need my help for these deals. All right. So just looking at this here, we're going to there's three different things that I like to do for marketing. And when you're doing your marketing plan, there should or you should always have at least two or three different things that you're doing. You don't want all of your eggs in one basket one month. You might be slow getting leads. Next month, you might be doing really well.
Let me talk about this a little bit. This is important to understand. When I was getting started, I was working as a as a as a project engineer, manager for general contractor here in St. Louis as we were building big office buildings and big aquatic centers and stuff like that. And then I moved to another company building big power plants. I was one of the schedulers. I was in the Project Control's division anyway. So I would go through this phase where I would do. But I remember hearing these guys talk about the importance of marketing executive and telling them, like, OK, I got to do the marketing. So I'd put it in my calendar block off time every day to send out letters or send out emails or text messages or call realtors. And I would just never get it done because I was always so busy. I just a couple of three kids at home, my full time job working 50, 60 hours a week. It was hard for me to actually do the marketing myself. So but I would I would send out a bunch of postcards, for example, and then I just sent out a bunch of text, but then I'd get a bunch of leads and I'd stop. OK, good. I got some leads. Right. And I couldn't handle any more leads. I was working all the leads I currently had and then I'd start making offers, get a few offers, accepted a great get a property under contract, start marketing the property either as a lease option or as a wholesale deal in that takes, you know, sometimes one or two months to actually sell that deal and get the money. And now I'm like, yes, I get some money and I turn around. My pipeline is empty. I've got no leads coming in.
You've got to write this one down. Here's another write down. You got to dig your well before you're thirsty. Dig your well before you're thirsty. All right. Now, so I'm like freaking out. Oh, my gosh. I got this money. That's awesome. But I don't have any more leads coming in. And it's not like just a light switch that you can turn off and on where you start getting new leads coming in instantly. It takes time. It's like when you're doing marketing, think of marketing as this big train and you've got this rope, this chain, and you're pulling that train along the tracks. It's really hard at first. It's really hard, but it starts moving and starts budging a little bit. You start getting the momentum and pretty soon that train, as it starts going, it becomes hard to stop, doesn't it, because it's got so much movement or it's like a big rock that you're pushing down a hill. Right. Big snowball or whatever. It's hard at first, but once it starts rolling and it starts building the momentum, it becomes hard to stop.
That's what your marketing is like. It's hard at first, right? You've got to be committed to the marketing for at least three to six months. Consistent marketing never stop, always persistently, consistently sending out the marketing multiple times to sellers and follow up, because that's where the deals come from. The deals come from the follow up. So anyway, you've got to start pulling those. So then I would do a bunch of marketing and then it's, you know, it's another two or three month process. By then I'm freaking out. I don't have any more money. I spent all that money that I made on that deal three months ago and I went through this vicious up and down roller coaster cycle of making a lot of money, panicking, running out of money, doing a bunch of marketing, making a bunch of money, running out of marketing, doing a bunch of marketing, making more money. You what I'm saying, I don't know if I'm being clear or not there, but like so I realized I've got to get this marketing done for me. Inspired me and it all started with this marketing plan.
I said, all right, I knew I wanted to make X amount of money per month. I needed to do this marketing and I looked at it and that I can't do it myself. Let's be realistic here, OK? I'm just too busy. I can't do this myself. I've got to get somebody else to do it for me. So this is where it all starts. I thought, all right, I'm going to get a virtual assistant. So I got a virtual assistant from Indianapolis because I was too scared to hire a vet from the Philippines. And I told this VA every day, I want you to go and just do one thing, go to Craigslist. The time Zillow wasn't as big as it is now. Go to Craigslist, scrape all of the rentals and physios and send them this email, send them this text. And I think I had her doing Slydini at the time, too. And so she would send out the market every day, twenty or thirty emails and text messages. And then if if somebody responded, yeah, I might be interested in selling my rental or doing a lease purchase or whatever, then she would send me the lead. And then what happens? Oh, it's beautiful. Every day I open my inbox to my Voxer, my CRM and I see three, four or five sellers that I need to call back or follow up with. OK, so this is why it's important to have a marketing plan, not something you can do.
I'm not trying to throw more work onto your plate. I'm trying to show you a way now you can get you can start asking yourself bigger, better questions. All right. Who can I get to do this for me? Maybe it's a bunch of direct mail. All right. Who who can I get to do this direct mail for me every week? You don't want to send it once a month. You want to send it. You will spread it out your mail every week. Maybe it's contacting realtors. So. All right. How can I get to email realtors? Twenty emails a day for me to realtor. I did a course with a gentleman, Haim, amazing virtual investor, wholesaler. He's in Israel all the time. Great guy. I love the guy. We did, of course, once called MLS hacks when I was talking to him. He doesn't do this as much as he used to, but he was going he was in about three or four different cities. He had a team about four or five. Is that we're sending about a couple hundred to three hundred emails a day for him to realtors of older properties that needed updating every day the TVs go in, look for houses that needed updating that just hit 30 day list or even zero days just hit. We've been on the MLS for 30 days, 60 days that needed work. And the VAS would send the realtor an email from him saying, hey, sell your house at one, two, three. Main Street looks like a nice house. Is your client negotiable? Would they accept something in this price range? Send a couple of hundred emails a day and of that you would consistently get one or two a day that would say, yeah, maybe call me, what are you looking for?
So he would call these realtors and just start building relationships with them. If that house didn't work out, that he would get another one. The other thing is the real the VAs would start sending to these to these realtors that make the sense the VAs would send to the realtors with all of these deals on offer. But they wouldn't write up a contract. They would say before, we don't want to waste your time with all the paperwork, but we'd be able to offer you seventy five grand for this deal. And attached is a proof of funds. So he would attach a proof of funds with all of his e-mails. All right. So then you see what's going on. You want to outsource the five dollar an hour activities. You want to do the five hundred dollar an hour activities which are talking to sellers, talking to realtors, talking to property managers and making offers. Maybe you want to do a Google Pay per click or Facebook ads. All right, listen, that is awesome. That works really, really well.
But most of you guys are not very techie. You're not very strong with technology. Looking at a Facebook ads, manage your account. You're like, oh, my gosh, what is this? And maybe that's just not for you. So what I would encourage you to do is don't ask how. Ask who. Don't ask how. Ask who. So when you're looking at this this really awesome training that you've got and how to do Facebook ads, great. Maybe hire somebody to go do it for you. Do what I do, get my 16 year old son. If I don't make him put him to work, he's just going to sit around and try to play video games all day or I'm going to be making him do a bunch of yard work all day and he's going to hate that. So I'm going to give him some work and guess what kind of work I'm going to give him to do my marketing. Right. He's out there sending five to ten offers a day for me for vacant land. And so I get him to do the marketing. I might get a direct mail company to do the direct mail. I might get a Facebook ads company to do the online marketing for me. I get a visa to the scraping, get my son to do letters.
Look at all your marketing and ask yourself a simple question. How can I do none of this? Get somebody else to do it all for you. That's the secret right there. Get somebody else to do all of this marketing for you. Now, you may not have the money to pay them, but you get creative, find somebody who's hungry and say, listen, if you do this marketing for me, I'll pay you ten percent of the profits of any deal that comes from, you know, hire some birdsongs, pay some people to go driving for dollars and pay them maybe like minimum wage if you have to pay them something, but then pay them a certain percentage of the profits in the deals that make sense. Don't let anything stop you from doing this. Don't let yourself make excuses. You have zero excuses to do this. Marketing zero. I'm telling you, none. You don't have any excuses. Maybe you need to get up at 4:00 a.m. to do it. Maybe you need to get your wife or your husband to help you do it. Maybe you need to get a kid or stay at home mom next door. A disabled veteran, somebody from church that's just looking for some work, has some time.
You need to find out what do you have and what do you don't have. You may have time, but no money. You may have money, but no time. So find somebody else who has it. You don't have find somebody else who has the time or some find somebody else who has the money. Gavin Tim is my coaching business partner, tells a story and I just love it. It's one of my favorites. He spent a couple of thousand dollars, his last dollar on direct mail, got zero leads and a super competitive market. And this was super competitive even six, seven, eight years ago, whatever it was. And so it's like, well, that didn't work. Did he just quit and give up? No, he understood. It's a long game. You went to the next local real estate club meeting and stood up when everybody said, do you have a deal or something to sell or whatnot.
So he stood up and say, listen, I just did. What did he say? He said, I'm good on the phone. If any of you have any old leads, I'll call your old leads for you. And you just pay me a certain percentage of the profit. And sure enough, two or three people came up to him afterwards. They had a bunch of old leads they were sitting on. They weren't doing anything with them. They said they train him. They gave him some scripts or contracts. He just got on the phone and started calling all their old leads. And guess what happened? Within a day or two, we had three contracts and he sold all of them and got a few thousand bucks. Right. You have zero excuses. If you don't have any money for marketing, find somebody who's got some old leads and call their old leads. If you have money for marketing but no time, find somebody else that can do the marketing for you. So you have zero excuses.
Listen, I was there. I had a full time job and family kids at home. I was on the computer all day. I don't want to be on the computer in the evening when I got home from work or on the weekends, but I knew the importance of marketing. So I got a VA that did it. Then I had a VA giving me too many leads. So then I hired someone to handle the leads for me and I paid them one hundred percent commissions, only thirty five percent of the deal. I train them how to talk to tellers, how to make offers. Then I got a problem. I've got too many leads now. This guy is getting too many contracts, too many properties under contract and like I can't. And this I don't have the time to sell all these contracts, so I hired a realtor to market the properties for me. So now I'm doing three, four deals a month and not doing hardly anything except managing the people in place. Right now, I'm not making one hundred percent of the profits of the deal, but I'm making forty five. Fifty percent of the deal. Right.
So that's how it works. You have zero excuses. Don't let yourself make excuses for not doing the marketing, not talking to five sellers a day. You can do it. All right. So back to them. A marketing plan. I feel like I'm giving you a good context of everything. Now, there's different things that you can do. Our goal is to get one hundred and ten leads per month. So how are we going to do that? Well, there's three things here that I'm looking at. Let me see if I can just scoot over. So there's I'm going to be doing one of the three things I'm going to be doing, our Zillow rentals. And what does that mean? That means I'm contacting I'm texting rentals, landlords, property managers and for sale by owners on Zillow. And I'm asking them, hey, do you want to sell your house or would you consider maybe leasing it for a period of time and then selling and let's say thirty five percent of my leads, 30 percent of my leads come from that. Let's say 40 percent of my leads come from letters and let's say 30 percent come from cold calls. So you can see here, 30, 40, 30, that total is one hundred percent. Right. So on. If 30 percent of my leads come from Zillow, that means I need to get 30 leads per month from them. If my average response rate is about five percent, what does that mean? That just means if I send out one hundred text messages, I'm going to get at least three to five that say, yeah, I might be interested in selling, maybe make it three. And you can see then, OK, well, three. That means you need to contact eleven hundred a month or fifty a day.
What does that mean. So I just, I take thirty three. You can see here I take thirty three divided by three percent. That tells me I need to contact eleven hundred rentals and fizbo a month or fifty a day. Some of you are saying oh my gosh Joe I can't do a fifty a day. There's not enough leads in my market. This is why you need to go look in the small towns. You need to look into virtual markets. So when I'm doing Zillow, I'm looking at the county or the state. There's a little plus or minus button on the map on Zillow. If you need more leads, click that minus button. Keep on zooming out. And if you have my symbolist options book and my course, there's a company I recommend in my course that will scrape Zillow for you. It's all right. So anyway, you need to contact fifty rentals. See there again, this is breaking this down and things I can't control. I can't control getting thirty three leads a month from Zillow. I can control me contacting fifty rentals and physios a day, sending a text, sending an email, sending a slide dial. All right.
Now let's say 40 percent of my leads come from letters, letters, handwritten yellow letters. They work really, really well. So that means I need what for? How did I come up with that? I took one hundred and ten divided by four times forty percent. I need forty four leads. So let's say my average response rate is two percent. All right. What does that mean now? If you're in a small market, you might be getting five percent. If you're in a real competitive market, you're going after the competitive zip codes. You might be getting a half one percent response rate. Just kind of depends. I like going after smaller towns, but I also like to send letters to rentals on Zillow. So let's say I'm getting an average of two percent response rate on a handwritten yellow letter, which I think is OK. That means I need to send twenty two hundred letters a month. How do you get that number? You take forty four divided by two percent. Forty four divided by two percent. I get you twenty two hundred. Now how many a week was an average of four point three. Three weeks in a month. That's five hundred and eight letters a week. All right.
You can't control getting forty four leads a month from letters but we can't control sending five hundred letters a week let's say. Thirty percent of our leads come from cold calling. I like to use freedom soft for my cold calling, so we'll talk about that here. Now let's say we get an ad that means we're going to we're going to need thirty three leads per month for one point five leads per weekday. And on average, you're going to find through an hour of cold calling one to two leads per hour. Let's be conservative and say one, you're going to get about one lead per hour. What I like to call I like to call old leads and absentee owners with equity in small towns. All right. So if I get an average of one lead per hour, in other words, I reach one person out of the 30 or 50 that I people that I call every hour, and they're going to say, yeah, you know what, I might sell my house, make an offer. That's a league. So that means I need to do one and a half hours of cold calling a day. Now, look at this. I need to contact 50 Zillow rentals and fizbo a day. I need to send five hundred letters a week and I need to do one and a half hours on the dialer a day. Not a big deal, but if you can't do that again, what do you do? Don't throw up your hands in the air and say, oh, I guess this isn't for me. Maybe it's not. But now you need to look at this.
Cesari, who can I get to do this for me? Who can I get to send fifty texts a day? Which mail company can I use to send five hundred letters a week. Who can I do. Who can I hired to do cold calling. Or maybe I can do that myself. So let's put this into a summary. All right. So I need to contact fifty zeros a day, five hundred letters a week and one and a half hours of cold calling. That's your marketing plan? It's as simple as that. This is how you create a business that's a stress free abundance of business. Stress for you, but that makes sense. So let's look here at the cost, you know, so if you're using a full time vuh going to be, let's just say, seven hundred fifty bucks a month for full time vuh. If you're sending letters, you've got to look at about three cents per name on average. If you're using freedom soft or perhaps it's going to be a little different. It's about 90 is about eighty five cents a letter. And you're using a CRM and phone numbers. It's about two hundred bucks a month for that. So that's about twenty nine hundred dollars a month in marketing. Now, would you spend twenty eight hundred dollars a month in marketing to make twenty thousand dollars. I hope you say yeah. OK, so on average you look at this and so twenty eight hundred divided by two point seven deals per month, you're looking at an average of about a thousand eighty two dollars in marketing per deal. So that makes sense.
Right now I'm not saying you maybe you don't have that yet. That's fine. So find the free things that you can do. Maybe it's just texting landlords on Zillow. Maybe it's just cold calling. OK, maybe you're not doing letters yet. That's fine. So your average cost per marketing per deal might be two hundred fifty five hundred bucks, but you're going to have to invest some money into marketing. And if you're complaining about this, there is not a single business in the world. I mean, if you look at the return on investment and time in any business, all the different businesses and franchises and business opportunities, there is hardly anything better than real estate and wholesaling, doing creative lease options subject to deals there is, I would venture to say, almost nothing more lucrative and gives you a better return on your investment, time and money than real estate. But you're going to have to invest something right. And here's the thing. My good friend pays Maubee and Jarmila. I mean, these guys, they are beasts. And the first thing they tell all of their students to do is go after old leads, go after other wholesalers, dead leads. If that's all you did, just contact other wholesalers in virtual markets and say, hey, what are you doing with your leads? And you start calling their old leads, making them cash offers subject to offers lease option offers, owner financing offers. You may not need to spend any money on marketing, but now you're just spending the time. Huge opportunity there. I don't know why my nose always itches whenever I start doing videos, it's like maybe it's the microphone. All right.
So here's our marketing plan. Now we need to put it on a scorecard and this can be done on a napkin. I don't care. It's got to be written down. You need a scorecard to start tracking your daily activities now? In my creative financing lab course I did with material material over epic real estate as a really, really good scorecard uses. But just like everything you do on a day gets points and this is kind of that. But like what you need to be focusing on and this is for you and your team. So every VA has a scorecard, your acquisitions team, they have a scorecard. You're tracking what are the goals that you can't control. So if your daily goal is fifty Craigslist ads or Zillow ads a day, and that might also include, by the way, Facebook Messenger, Craigslist goes s.a. Anywhere where you can find somebody advertising a house, maybe older leads, older listings on Redfin, you're going to be contacting fifty a day emailing, texting, slye dial. So that's two hundred fifty a week. You're going to be sending five hundred letters a week. Maybe you're doing two thousand postcards a month, maybe you're spending one point five hours of cold. Calling a day equals six times five or that's seven and a half hours a week. Now you start tracking your numbers here.
Are we good. You understand this is where now the rubber meets the road. This is where if I'm working with somebody and they want me to hold them accountable, they want my coaching and one on one help, I'm not going to ask them questions about their beliefs. And they're limiting beliefs and how they feel. I'm not even good at using examples like I don't want to be knocking that stuff because obviously it's important. But I'm just going to ask them one simple question now. How are you feeling? Show me your scorecard. How much marketing have you done in the last week? How many sellers have you talked to? How many offers have you made? That's all that matters. If you want rah rah like you're awesome and you can do it, go watch a Tony Robbins video on YouTube. There's a gazillion of these big inspirational movies like I believe in you. You can do this, right? You've got this. Go watch an inspirational video. But if you want to make money, get a score card, get somebody to hold you accountable to this and start doing the marketing.
Doesn't matter what business you're in, you may be in the oil change business. You may be a realtor doing regular listings. You may be some franchise that sells Dairy Queen ice cream. Right. It all comes down to marketing. What are you going to do to bring customers in? What are you going to do to get leads? This is what you've got to do every week. So start writing down your numbers. How many Zillow ads did you contact? Facebook Messenger ads? Did you contact how many letters did you send? How many postcards and how many hours of cold calling did you do? Then you start tracking how many sellers you've talked to by Marketing Channel. This is really important.
I want you to start tracking your goals to talk to five sellers a day by marketing channels. So you may see after month or two or three of doing this, you know what? This these yellow letters aren't working or these postcards. I maybe I don't need to do that. Maybe the zip codes are working better. Maybe cold calling is working it better. Maybe I need to, but you need to be doing at least two or three different types of marketing. Can't have all your eggs in one basket, but start tracking how many sellers. That you're talking to and again, your conversation with sellers is really simple. I did a there's a YouTube videos I did on my I did two different videos on my stellar scripts, one for cash buyers, one for lease options. So go review those videos. But like, what do you say to just say, hey, tell me about your house. You want to sell it? I want to buy it. So tell me a little bit about it. That's it. Just asking them questions about the house, but you need to track your numbers and then you need to make offers to at least seventy five percent of the sellers you talk to. Send them an offer. Now, it's not enough to just tell them an offer of the phone. It's not enough to just send them an offer in an email. Trust me on this. You want to send them an offer, do all of that, but also send them an offer in the physical mail. Right. Every day my son walks up our big hill to the mailbox and puts about five to ten offers a day in the mailbox. We want to send it to them in the mail. He hand addresses the envelope, puts a real stamp on it. I let him do return address labels. I was reluctant to do that. He's a young kid who cares if he gets writer's hand cramps or whatever, but it's a hand addressed envelope. And guess what? We get more responses from that than we do. Just regular handwritten. I mean, the typed letters anyway. All right.
Now, this is where the magic happens in the follow up here. So every day, every week, you should be following up with some old leads from the month previous. And that's where you start getting your deals from. So start tracking your numbers, start tracking the sellers that you're talking to, the follow up offers that you're making. Put it into a scorecard like this. You notice here on the scorecard, there's no activity for building your website, building business, designing a business card, creating an LLC, watching more videos and podcasts, reading books. There's no scorecard for that. That's important. I'm not knocking that. You got to understand what you're doing. You need to get educated. But that's not going to make you money. I know I was a professional student for three years before I ever did a deal. I was college educated. I have my bachelors, I have my masters, my MBA. I mean, I'm not going to not college education, but it doesn't make you much money. Doesn't make much sense to me to go out and get spend seventy five grand on a college degree to get to get a job that makes you maybe seventy five grand a year and pay off the student loans for next thirty years, whatever. So but I understand the importance of education, but like there's comes a time when you just got to do the stuff, you've got to start talking to sellers, you've got to start making offers. So you need to have a scorecard.
And let me say this one final thing. You've got to take the scorecard right here and send it to somebody to hold you accountable. If you're working out, you're exercising. Nothing helps the accountability more and have somebody who's waiting there for you at the gym. Maybe it's a group of friends. Maybe it's a coach, somebody waiting for you there at the gym. You don't want to let them down. You need to get somebody in your life that will hold you accountable to this to this marketing plan, because if you're not doing it, you got to get somebody else. I can do it. Maybe you have a team of votes, so you're the one holding them accountable. This is the first thing that they do. Don't let them worry about anything else until they're doing this. You know, maybe there's other things you could be doing to this, right? You could be maybe you could be doing driving for dollars. Maybe it's two hours a day driving four dollars. You could be doing a calling realtors of older listings, maybe one hour a day. Maybe it's emailing realtors of older listings. You get a visa to do that two hours a day, four hours a day, emailing realtors have older listings. What else could you do? Social media marketing? I don't know. YouTube videos maybe do two hours a week for doing that. What else could you do? Postcards, by the way, direct mail is becoming more and more effective. Don't think direct mail is dead. It's not. We're getting about three percent response rates right now on our postcards. You don't believe me? What's that? You don't believe me? We're doing right now. Our two newest campaigns are a Jackson County and Macomb County. We're doing some postcards. And in Jackson County, three point one percent response rate. We've generated about sixty five point nine hundred and thirty five dollars to send two thousand ninety one postcards, about three percent response rate. We've got one solid contract out of that. We've got about two more that we're working on. And then Macon County, two point six percent response rate. And we've got two properties out of that, maybe one.
So we're working on three solids and two, one or two potentials. And so we sent offers C, we sent twenty four, we canceled one contract, sent twenty six offers there. I'm writing this down. Twenty six offers there and thirty two. Thirty seven, thirty seven thirty nine offers there. Five sixty five offers for sixty five. Sorry I'm looking at my calculator. Sixty five degrees. So for every yeah. We're averaging about one deal out of every 16 to 20 offers so I know my numbers. What can I control. I can't control. I just had a brain for so I'm looking at my numbers. I get distressed, I can't scratch my head, pat my head and rub my tummy at the same time. But on average we need to spend about twenty percent, about twenty offers to get one deal, just the number. So what are you going to do. Well, I'm not going to go buy another course or read another YouTube watching the YouTube video or buy another class, go to another boot camp. I mean that's important, right. I'm going to send more letters. I'm going to send more postcards, more letters. I'm going to make more offers. I'm going to do more follow up. And I'm not going to do it and too busy playing golf. Don't tell my wife I'm just kidding you. Like I'm too busy playing golf and doing these videos and podcasts and having fun with my family. Right.
So I'm going to get somebody else to do for them to get higher, mainly company to do it on. Get one of my sons to do it for me. I'm going to the disposition side. I don't do any of the dispositions. I found a friend, an old student who did a bunch of houses and didn't like it. So I said, hey, listen, let's do land together and we'll split the deals. Forty five fifty. Right. And so once we get it under contract, he does all the work of the dispositions, doing the due diligence and the research, getting it under contract, buying it, selling, advertising, marketing, taking the calls. I mean, it's a lot of work. So anyway, I love this business. I love this business. Let's not I'm just going to answer a few questions here. We're at the top of the hour. Already gone past what I wanted to be at. But I'm hoping you type in that.
Those of you that watch me on Zoom right now, type in the zoom chat. What were some of the big takeaways from this? What were some of your big AHA's? If you're watching this on YouTube, please comment down below on this video. Subscribe to my channel, by the way, and click that little alert button to get notifications when we come out, new videos I do this every week is completely free. I'm not here to answer questions. It's not like a coaching call. I'm just trying to share with you my secrets. That's why I call it secrets. Yeah.
If you like the stuff I subscribe, I do these videos all the time. My big takeaway, how truly important marketing is this business? I love it, Nick. Make money. Make offers. Right. Outsourcing your tasks is very good. It's all about the numbers. Caroline That's right. Chellaney Take action. Take action. Chellaney I'm going to be asking you those questions. I'm going to be asking you a lot of those questions right now. Show me your scorecard. How many offers have you made in the last week? Consistency. Getting some Vas to help me. That's right, Liani, I believe. Nice. I love it. Regina says, I'm so glad you really you've spent an hour on this topic. I really needed to be reminded again of the importance of structuring a marketing plan, following through with help as needed in order to succeed in my business. And you need a VA now? That's right. You feel like you're drowning. You feel like you're overwhelmed. I'm telling you, get a virtual assistant and the first thing you should give your virtual assistant to do is your marketing plan. Give them your marketing plan and say, here, here it is, do it. And you may be like, I don't know how to do it. Yeah. All right. Well, get my course. I teach you how to do it, but then don't give the VA the my videos, OK? Give your virtual assistant the log into my course, have them go through it and learn how to send the text. Have your VA learn how to use freedom, how to send the letters, how to get the lists, how to do this and that. Tell your videos, tell your virtual assistant go watch this video that Joe did there in module to do it yourself.
That's what I did once I. I forget who it was. Somebody had a course on how to make offers on HUD properties from the website HUDhomestore.com. So I bought the class, I gave it to my assistant who was a realtor. I said, listen, I want you every day to go make twenty to thirty offers on HUD properties. And she did. She went to the course, she learned the system. She would update me every week on what she was learning. I made her show me like the spreadsheets and how she came up with the offers. She was excited about it. She loved it. I gave her a little bonus of five percent. Any deal that you get, I'll give you five percent bonus. OK, clarity on leveraged actions. Thank you. I love it. Sharon giving me a scorecard card, someone giving my score card to someone that will hold me accountable. That's a big takeaway. That's huge.
Jeff, focusing on the basics I love it looks like the score card importance of the score card. I love it. OK, some of you are asking for a copy of that score card marketing plan spreadsheet. Think it'll be in my YouTube channel. Go to my YouTube channel and look in the description below the YouTube video. Have a link to this spreadsheet in there. OK, by the way, if you are looking at that spreadsheet and you're going to be wanting to use it, where did it go? Here, hold on. Let me find it for you. Here it is. If you're looking at this spreadsheet and you want to use it right, you need to go up here to file and make a copy, make a copy in your own Google Drive account, or go to download and download it as an Excel spreadsheet. But I will put it in YouTube on one condition and one condition.
Guys, I want you to please leave a comment below this video on YouTube and subscribe to my channel. Give me a thumbs up. Three things, give me a thumbs up. Subscribe to my channel. Leave me a comment below this video. Say, Hey, thanks, Joe, you're awesome. Or be honest with me. Tell me this sucks. I don't care, but say something. Comment down below. I'd really appreciate it. And in the description of this video, you'll find a link to the spreadsheet again. Make sure you go to file, make a copy or download it as an Excel spreadsheet because you're not going to be able to edit the spreadsheet. I'm going to be sharing with you a view only link. So you're not going to have edit access or privileges to this.
All right, guys, I appreciate you all so much. If you want more information on how to do deals, go get my book. Simple Options, The easiest and fastest way to do more deals in any market. This works in a hot market, in a cold market, flat market, especially right now in a hot market. This works really, really well. You can get this book for free by just watching my webinar at SLOclass.com, SLO stands for simple lease options.
Alright guys, I appreciate you all very much. Again, if you're watching this on YouTube, just type in the comments. What were some of your big takeaways from this? I really appreciate you guys. I appreciate the comments in here. I guess we'll see you later.