STUDENT APOLOGIZES FOR HIGH FIVE-FIGURE MONTH
I was checking in with a Student who has been doing deals like crazy for the past year. After we got past the pleasantries I asked how his business was doing and he sort of snickered and said that he hadn’t been able to break his $100,000 a month goal for this year – at least so far.
He went on to explain that his highest month was $96,000 but he had a lot of closings coming up and still expected to do over one million for the year. He was not bragging but rather being forthright about what was happening but he did apologize for not breaking this self-imposed goal.
He then explained how he was encountering an ongoing problem with his incoming leads and that was he was getting too many! While most local investors seem to have the opposite issue, not enough leads, he had too many to work properly. In fact, he was looking to hire two people to a work his incoming leads.
If he has a secret it’s that he concentrated on splitting his business into two distinct parts. The first being traditional direct-marketing with letters and postcards and the second type where he is using the internet to generate leads 24/7/365.
While the direct marketing can be effective, remember that consistency is often more important than the actual content of the mailing pieces. Content is obviously important but not paramount because your mailing may not impact the prospect exactly when they need your help.
If you are thinking about doing internet marketing that’s great but you could inadvertently throw a lot of money at it with no results. For what seems like forever, people have been offering investors their own internet sites – usually consisting of a buyer, seller and raising private money sites. Simply having the sites is only the first baby step in getting a steady stream of incoming leads.
The real difference between making a living by generating leads online or playing online is finding the most economical way of getting a continuous stream of leads. The two most common ways to generate leads are organic searches where your website has so much content and “authority” that prospects find you by simply Googling® you or a few key words online.
The fast and furious way is to pay for the traffic. Because there are many competing investors the key words your prospects are searching for are expensive and not guaranteed to get actual clients. The limitation on your website traffic is only limited by the number of visitors you can afford.
If you bid $15.00 for a click, you instantly will get prospects coming to your website but the next step is you have to convince them to fill out your online questionnaire – the prospects that do this are called conversions. For example, if your CTR (Click Through Rate) is 1%, for every 100 clicks you pay ($15 x 100) = $1,500 to have one person land on your website. Now comes the serious part – what is your conversion rate (CR)?
Actual conversions are simply the prospects that come to your site and filled out your questionnaire. Unfortunately, it doesn’t mean they are motivated sellers. Assume you may need 5 completed questionnaires to get a deal. Again as an example, if your conversion rate is 20% (one in 5 applicants), you’ll need 500 clicks to get 5 people to land on your site, which costs you $7,500.
$15 a click 100 clicks = one completed questionnaire; 5 questionnaires = one deal. Your cost is $15 x 100 = $1,500 = for one completed questionnaire.
You need 5 questionnaires to get a deal = $15 x 5 x 100 = $7,500 for one deal.
But what if you got only one deal for every 10 questionnaires? That’s $15,000 per deal! If you can’t close the sellers on using you and it takes 20 questionnaires, your cost per deal could be $30,000.
To add insult to injury, Google® is in the business of advertising so on an irregular and ongoing basis. They change their algorithms that constantly review every website and rank their organic content. This shuffling of website rankings forces domain owners to spend money on PPCs (Pay per Click) as their source of new leads. It is designed to increase the competitiveness of website owners bidding against one another for relevant key words. You can get a lower PPC cost by geo-targeting and some other tricks but you need to know what you are doing or hire someone who does.
A very recent change Google® made was to start giving more credibility to sites that are called “responsive”. There are two types of “responsive” sites – first only mobile phone responsive and secondly for all mobile devices – phones, tablets and readers. Site owners who had spent a lot of money and time getting organic searches suddenly found upstart new sites jumping ahead of them in rankings simply because the new sites were fully responsive.
If you decide to start looking at getting your website cranked up to bring in leads be careful as you could go broke while you wait for leads. Your better choice is to hire a pro that is actually in the game on a daily basis and preferably as a real estate investor. In the long run, it could be much less expensive and keep you in the game!
To your limitless success,