The Science of Flipping - Cold Calling: The Power Of Numbers

Starting point is 00:00:00 what is up guys what is up welcome back to the science of flipping podcast I am your host Justin Colby and on this episode we're going to be talking about the power of your numbers specifically when cold calling make Make sure to keep listening. And by the way, guys, if you are not actually watching me on this podcast right now, I would encourage you to. So I, yes, I am on iTunes as most of you guys are listening there as well as Spotify. But if you just so happen to be listening at a place like in front of your completer, just go over to youtube.com forward slash Justin Colby and go ahead and subscribe because I dropped this podcast episode right there on youtube.com forward slash Justin Colby. Make sure you subscribe and like it

Starting point is 00:00:57 because I'm coming in with the hotness right here on this episode. So with that said, let's talk about the power of your numbers. Many of you guys know that I coach and have coached thousands of individuals in this space for years. And I am a firm believer and I'm an active business running heavily on cold calling as my lead gen. And so I need to make sure that my entire business understands the power of the numbers because we can pivot based on the power of the numbers. So before we start, I want to clear the air. Many of you might be thinking, Justin, I don't love cold calling. I hate cold calling. That is fine. You don't need to love it. But what I can tell you is if you are just getting started, the fastest way into a seller's door, getting in contact with a seller, will be

Starting point is 00:01:47 calling for sale by owners, whether it be on forsalebyowner.com or zillow or fsbo.com, or for rent by owners, landlords who are looking to rent their home that could potentially turn into an actual purchase or lastly expired canceled or failed listening listings those three out of the gates should be what you are utilizing so you can actually start to gain confidence and practice the art of talking to a homeowner now for those of you that are like me or have years of experience, maybe you have a marketing budget, whatever the case, and you want to hire this out, I have a couple recommendations for you.

Starting point is 00:02:32 And if you want to know who I recommend, you can just simply give me a message. There's several of them, or you can write it down here in YouTube if you're watching this. Just ask me. I'm happy to recommend a couple good cold calling companies that are specific to real estate. I don't love the VAs per se.

Starting point is 00:02:52 I just don't believe they've been trained the right way. One of the big caveats, and by the way, I'm going a little left here, guys, just if you couldn't tell. One of the big caveats on knowing your numbers is making sure they're doing the right things and when people tell me they're going to hire a virtual assistant to do cold calling for them i always say well are you going to manage them and most people like well that's why i was going to hire them so i don't have to and now we're talking about leadership and where the breakdown becomes and so i'm not a big advocate to telling people that you should go actually get a virtual assistant to do your cold calling for you. I just don't believe it works because of the fact that most people

Starting point is 00:03:29 don't actually manage their VAs. And so I would really encourage you to get to a point of finding enough capital to put into a actual cold calling company. I have a handful that I recommend specific to real estate investing and using them. Now, again, kind of taking a little left here, forgive me as I'm just really kind of fluidly thinking about this. It is also really important for you to understand that cold calling isn't always the cheapest way to go. And the reason being is if let's just say you're calling a list of 10,000 motivated sellers, well, you'll also have to skip trace that list.

Starting point is 00:04:09 Now, I'll tell you, if you are going to skip trace that list, the very best data there is and the cheapest is over at Batch Skip Tracing. So if you just go to TSOFBatch.com, get a login and use promo code TSOFbatch.com, TSOFbatch.com, get a login and use promo code TSOF. They will actually give you a discount on their skip tracing. They are by far the very best in the industry. Go to TSOFbatch.com and use promo code TSOF. They're killer. With that said, if you did download a list of 10,000 and you skip trace it, there's still just a cost that a lot of people don't talk about. A lot of the gurus don't talk about the actual cost of going for volume. So let's dive into that, right? Because this is really about the start of your KPIs is what is going to be your cost of the callers? And then what is your cost of the skip tracing? And if you combine that, then you can start to be your cost of the callers, and then what is your cost of the skip tracing?

Starting point is 00:05:06 And if you combine that, then you can start to have your cost per lead and your cost per deal. Now, I can tell you right now, we just did the morning meeting, and we are getting $17.50 cold calling leads in our business each and every week right now. Now, that is over time.

Starting point is 00:05:24 We have dialed millions of people over the last several years and so it has really started to average out and continues to get smaller that is not the case coming out of the gates if you are looking to go higher one of my suggested cold calling companies uh that i would advise um or you know and skip trace then the first 10 000 calls are going to have a much higher cost than your 250 if thousandth call if you will right because you've basically already done all the skip tracing all of that cost is already front loaded and so it starts to become cheaper as you go down now here's really the meats and bones of what I'm trying to get at here. You are looking to try to find as many leads as

Starting point is 00:06:09 possible and nurture them until there is a event that they are dealing with that they have to sell. The main difference between PPC and cold calling is PPC, which is pay per click advertising on Google is they're going through that event right now they need to sell now high motivation, high cost of lead. PPC leads can range anywhere from $200 to $700. I'm getting $17 leads, right? So you can see there the difference. And I get a mass volume of leads. So we bring in roughly a 100 new leads every single month. And so we are bringing in 100 new leads every single month. And that is just one cold calling company. And so you can see

Starting point is 00:06:56 how over time, you have all these leads to start working. So what you essentially want with a cold calling company or even yourself, you want good data. And why is because you want to make sure that you have 10% of all the calls you make, all of them, 10% of them, you can mark as a contact. A contact, and what that means is they are actually the right person or the right person lives in the house meaning if you call and you say hey is justin there and i answer and said yes this is him boom contact now you know your data is good so 10 of all calls you want to be a contact this is why i highly encourage you for sure to be using batch skip tracing okay promo code tsoF, because their data is the best. So you go and get good data, and you get 10% contact

Starting point is 00:07:51 ratio from that 10%. Then you want to have roughly 7% of the 10% are going to be actual seller leads. They're interested in selling in the next 12 months. That's what a lead is to find in my company. Someone who is interested in selling in the next 12 months. Now, do they want the number you're going to give them? I don't know. Probably not. Are they willing to do this in the next two weeks? I don't know. Probably not. But they're looking to sell. The key to cold calling will be your ability to bring the lead in, nurture the lead until they're actually ready to move forward. That will be your key.

Starting point is 00:08:28 And those that have the best nurture system, the best follow-up system, and quite honestly make the most offers, those are going to be the ones that convert the most deals. So out of all of your leads, your next target will be to convert roughly 2 percent of all of the leads that you bring in okay two percent out of all of the leads that you bring in that's really what you're trying to do here by the way i'm gonna admit to a mistake i just made as i was kind of riddling off all these

Starting point is 00:09:01 thoughts i'm having right now about cold calling i I'm bringing in 100 leads a week, 100 leads a week, not a month. And so again, when you are converting 2%, that would be two deals a week that I'm converting just from my cold calling, right? I'm bringing in 100 leads a week, four weeks a month. You can see how the numbers work. Now, that takes time. Your conversion will get better over time based around your ability to follow up so again my lead um cost is 17 which is incredible uh i keep i try to keep all of my costs to deal roughly between 3 000 and 5 000. so sometimes if you ask me i might be saying you know it cost me roughly five thousand dollars to go get a deal. so sometimes if you ask me i might be saying you know it cost me roughly five thousand dollars to go get a deal the other times you might ask me and i might tell you

Starting point is 00:09:50 is three thousand dollars because i'm trying to keep right in that sweet spot it used to be i would be able to say three thousand dollars every time now that's not the case it's progressed higher but if we do a couple conversions and we get a couple deals really quick all of a sudden it'll quickly drop back down creeps back up because we spend a little bit more drops back down you get my point so here's the point this is invaluable to you to understand if you are going to get in a cold calling and i highly recommend it you need to know your numbers because you'll you'll know where you're supposed to move your lever. You'll know whether you're just converting terribly, whether your data is incorrect,

Starting point is 00:10:30 whether you're not converting the leads, whether you're in need of better offers. Are you making enough offers to even make that conversion of 2% deal? So if you know this stuff, you'll know your data is good. You're spending the right money. The callers are making the right amount of calls. The lead volume is a good lead volume. The price of your leads are good. The deal cost is good because then it's just math and you say, how much more money can I spend? For those of you just getting started, again, remember the best places to start for you to cold call yourself for sale by owner on zillow for sale by honor.com etc for rent by owner as well as failed and um

Starting point is 00:11:16 cancelled and expired listings that's the best way because it's absolutely free all you have to do is skip trace them over at batch again go to tsofbatch.com and use tsof as the promo code again if you are listening to this on itunes go over to my youtube youtube.com forward slash justin colby subscribe because each one of these podcast episodes are actually right there on youtube in fact not only these but I dropped three separate YouTube videos all about business, entrepreneurship and real estate right there on that YouTube. So that is six total videos a week. I'm bringing you the fire and bringing the heat. I hope this

Starting point is 00:11:56 really, really helps. Leave comments below. Make sure you're liking this video. Make sure you're giving me a five star review on iTunes and make sure you're subscribing. a five-star five-star review on iTunes and make sure you're subscribing see you guys later peace

The Science of Flipping - Cold Calling: The Power Of Numbers

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