The Science of Flipping - Episode 188: Convert More Deals With Proper Expectations

Episode Date: February 27, 2021

Episode 188: Convert More Deals With Proper Expectations

Yo, yo, what is up guys? What is up? Welcome back to the science of flipping podcast. I am your host, Justin Colby. And on today's episode, I actually wanna talk to you guys about my actual KPIs and what you should be expecting all the way through each marketing strategy that you are doing. I know I have reviewed marketing KPIs on previous episodes, but I'm actually literally sitting in front of my computer right now, and I'm actually going to go over what you should be expecting per marketing strategy,

not just with your KPIs, but also how much you should expect to be spending per marketing strategy so that you know what's going to be the right marketing strategy, not just on how many leads that come in, but how much money you yourself are going to have to spend. If this is your first time on the podcast, welcome. I really encourage you go to thescienceofflipping.com. It's an incredible resource for you. There are a ton of free trainings on there, as well as if you're having some major issues,

some challenges, or further want to know more knowledge around marketing, marketing strategies, fill out the application to speak to me and my team members. We're happy to help you where we can. If you just go to thescienceofflipping.com, fill out apply form, I will get on a call with you and we can talk about what marketing you're doing, how we can help, what type of expectations you should have and further this conversation with you. So again, that's over at thescienceofflipping.com. With that being said, we want to make sure here that you have the best processes, tools, systems possible in your business. And part of that is going to be your marketing right you need to understand what marketing you should be doing and what kind of you know replies responses you should be getting and then also that leads right into the big one which is sales and conversion so i want

to jump in right now and i'm going to go through cold calling i'm going to go through direct mail i'm going to go through voicemail drops i'm going to go through text messaging i'm going to go through cold calling. I'm going to go through direct mail. I'm going to go through voicemail drops. I'm going to go through text messaging. I'm going to go through pay-per-click advertising on Google. I'm going to give you all of the data you need to know to make the right decision for your business right here. I'll even tell you the companies that I'm currently using and where to find those companies as well.

And so let's jump into cold calling. This is my number one favorite marketing strategy because it's quite honestly how I got into this space. I was a broke, busted, and disgusted 25-year-old kid living on my friend's couch, and I started cold calling realtors. Now the game has changed drastically and we are able to use Mojo cells or Zen call or all these multi-line dialers. And it is a game changer. And so I want to talk to you a little bit more about if you are using those style of triple line dialers or even Zen call, I think can go up to 10 lines. Um, and so I want to tell you guys a little bit more about that. But by the way, if you don't know, uh, my podcasts are

actually streaming on YouTube. So just go to youtube.com forward slash Justin Colby, uh, and subscribe to my channel. Cause I do weekly podcasts right there on YouTube. So you can see me. So if you are not seeing me right now, if you are listening to this on iTunes or Spotify, all good, but you know you can go right over to youtube.com forward slash Justin Colby as I stream these videos live there as well. If you're liking this

and you're actually watching it on YouTube, smash the like button. If you wanna know more about marketing, marketing conversion, marketing spend, make sure you are smashing this like button because I can't do it for you okay so let's jump into cold calling first of all you should be using mojocells.com as a triple line dialer you could also use Zen call kind of up to you but those are the two that I would be using mojo is 200200 all in, meaning you also get a lead source out of that. So I would tend to use Mojo

because it's only $200 and you have an opportunity to be able to map out leads, which will give you skip trace phone numbers and you can start dialing right then out of Mojo. You don't even need to go skip trace a list. So really, really incredibly affordable. However, the quality of those skip trace phone numbers aren't quite as good as if you use bashskiptracing.com and you can use promo code TSOF. If you go to batchskiptracing.com, use promo code TSOF. Their accuracy is second to none. I'm a huge user of their skip tracing services and advocate of them also. And so if you use that promo code TSOF, it'll save you three cents per skip trace. And you're going to have much higher accuracy when it comes to cold calling

and text messaging. You will know that it's all about accuracy. If I'm calling someone and I say, hey, is this Fred? And it is actually Jake. And Jake says, Fred has never lived here. Who's Fred? I'm already climbing a hill and now I have a boulder to push up this hill. It is almost impossible to turn that conversation around about Jake now selling their house when I call to see if this was Fred. So accuracy of phone numbers, really, really important.

Okay, so let's dive into the cold calling numbers, mojo sales. If you want, I use two different call floors if you're looking to scale your business and have multiple callers. Here's probably the easiest way I can make that referral. If you just want to email me, info at the science of flipping, info at the science of flipping dot com. Email me saying, hey, I'm looking for your cold calling companies that you use or the referral of flipping.com email me saying hey i'm looking for your cold calling companies that you use or the you know referral of them both of these companies interview their prospects first so i want to make sure i'm sending over good prospects to them um and so email me at info at the science of flipping.com i will then connect you with the companies and they can go ahead and do their interview. So I use two different cold calling companies. I have 16 plus cold callers

right now working for me, driving in just under 200 leads a week. It's a lot of leads, but that's why I do so many deals, right? So yes, I would encourage you to do it yourself first with Mojo cells, but then move on, grow and scale and start using a company. Just email me. Um, because I use AMSI and Lamassu companies. You probably have not heard of before. So AMSI Corp and Lamassu, but I'm going to just connect you directly with them and let them interview you and figure out if it's going to be a good fit between them and you. So where I get my list is usually a natural progression of questions. I use PropStream. If you go to TSOFdata.com and put in promo code TSOF, they will give you seven days for

free. Okay, so TSOFdata.com and use promo code TSOF, they will give you seven days for free. Okay. So TSOFdata.com and use promo code TSOF. PropStream will give you seven days for free. You can try it out. You can even pull lists. And if you like it, great, keep it. It'll be $97 a month. If you don't, no big deal. You got seven days for free, right? So PropStream is where I pull my lists. Now, good contact ratio when cold calling, okay? Good contact ratio is roughly 10% of the calls you make. Write this down. 10% of the calls you make are a contact. A contact simply is, if I call Fred and Fred answers, yes, this is Fred, that is a contact. It doesn't mean it's a

lead. Don't get it confused. Don't get it twisted. It just means it's a contact. With that said, from that 10%, from all of the Freds that answer, yes, this is Fred, 7% of the contacts become seller leads. Okay. 7% of the contacts become leads. So if you make a thousand calls, you will have roughly 100 contacts out of the 100 contacts. You will have seven leads. You should be able to sell and convert roughly one lead into a deal out of anywhere between 100 and 200 leads. So out of 100 to 200 leads, you should be able to get one deal. Now, once you build a pipeline, that number should shrink. That number should actually go down to one out of every 50 or so. So as you first ramp up, it's going to take you roughly 100 to 200 leads from cold calling to convert a deal. Once you have a pipeline of leads, then it'll take roughly one out of every

50 leads to convert a deal. Again, rewind this. If you like that information, if it's on point, smash the like button if you're watching it on YouTube, but rewind this and write that stuff down. Okay. Now let's talk about texting. Since you're already skip tracing and you use bash skip tracing.com promo code TSOF, and you're already calling them, you might as well use launch control for skip tracing, or I'm sorry, text messaging. Text messaging is a great platform because guess what? Everyone answers your text. So essentially here are the numbers for text messaging. Text messaging is a great platform because guess what? Everyone answers your text. So essentially here are the numbers for text messaging. I use launchcontrol.us. Go to launchcontrol.us. They're going to ask you to fill out a form. Just mention in there that you heard

about them through the science of flipping or Justin Colby. Again, launchcontrol.us. You heard about them through Justin Colby or the science of flipping and they will hook you up um so with that said uh you know texting kpis you should be sending out roughly 300 to 500 a day if you're doing it yourself from that that volume should produce anywhere from two to four seller leads a day. And you need roughly 24 leads to get a deal. 24 text message leads to get a deal. That means roughly one out of every 5,000 text messages you send out will become a deal.

Again, rewind that, but once one out of every 5,000 text messages you send out should convert into a deal. That is the KPIs revolving around text. I use launchcontrol.us. Say Justin Colby or Science of Flipping when you fill out the form, they'll hook you up. Voicemail drops. This was a really popular strategy a little while ago. I think it has dwindled. But if you are using voicemail drops or want to use voicemail drops, I use message communications.com message communications. You basically are paying by the minute used and they calculate minutes by delivered voicemail. So roughly the most you can pay upfront is $895. And then it just depends on how much you want to use it. But again, if you're already spending

money to skip trace, why not layer on voicemail drops? You're already calling, you're already texting. Why not layer on voicemail drops? Seems to make sense to me, right? So with that said, it takes roughly 2,700 voicemail drops to create one lead. So it takes a lot of data to create one lead. And out of that, you should convert one out of every 20 leads that comes through your pipeline. So one out of every 20. So you essentially, 20 times 2,700. You can see it takes a lot of data to get your first deal. Follow me? Let's jump into what I still believe is,

cold calling is my favorite, but like one and one A would be direct mail. I still love direct mail. No, it is not getting anywhere near the return that it used to, but I still love it. It is getting now anywhere from a third to a half of 1%. It used to get a full 1%. Now it's getting anywhere from a third to a half of 1%. Total callback. Total, which means half of those are going to be FUs. Half, right? And so if you send out 10,000 mail pieces, you are going to get roughly 50 calls back in the best case scenario,

total. Out of the 50, you're going to have 25 of those are going to be FUs. The nice part is you can convert one out of every 25 leads that comes from direct mail. So for every 10,000 pieces of direct mail you put out, you should be able to get one deal. Now the cost of that could be a little bit, right? So essentially you're going to be spending anywhere from 50 cents all the way up to a dollar on direct mail. It just depends on what kind of postcard or letter you use, whether you use black and white, whether you use color, et cetera. The company I use is Open Letter Marketing. If you just go to justinsdirectmail.com, justinsdirectmail.com, and create an account with promo code TSOF, that is the direct mail company I use. They are phenomenal. And a matter of fact,

if you are not yet subscribed to my YouTube channel, here's a reason to subscribe. Go to youtube.com forward slash Justin Colby. I do a four-part series with the owner of the direct mail company. His name is also Justin. So go to YouTube, go to my channel, subscribe, and watch that four-part series about open letter marketing. The company's amazing. They're real estate investors themselves. Go watch those four-part series. So you can spend anywhere from 50 cents all the way north of a dollar on direct mail, anywhere in between, but let's just use 50 cents as the barrier of entry. It's going to cost 50 cents for 10,000 mail pieces.

So you are going to spend $5,000 to get one deal. So this is largely the second most expensive marketing platform you could use. So really I encourage direct mail for those that have a good marketing budget. And lastly, guys, let's talk about pay-per-click advertising. This is the most expensive marketing strategy, but it tends to give you the highest motivation in sellers. That's what you're doing it for. That's what I'm doing it for. I encourage you to do PPC if you have the right marketing budget. The company I use is geoflip.com forward slash T-S-O-F, geoflip.com forward slash T-S-O-F. They're the only company, I've used many, that have worked

for me. Again, geoflip.com forward slash T-S-O-F. So essentially the idea here is I would require anyone who's going into PPC to have a six-month bandwidth. What I mean by that is PPC needs a little bit of time for the algorithm to really pick it up in your market. And then you're going to have really good months out of the gate and then probably a little bit of a slowdown and then a really good month. So you really want to have a bandwidth for six months minimum. Do not get into PPC if you are not doing six months minimum. But if you do have that bandwidth and you want highly, highly, highly motivated leads, then PPC is your way to go. I would say you need to have a minimum of $5,000 a month for a marketing spend. The management company, Geoflip, is going to take anywhere from $1,500 to $2,000 to manage this, so you don't have to do it. Well worth the money, by the way. Then you should spend roughly $3,500 a month on your marketing. This will bring in,

at that spend, $3,500 a month, You should be able to bring in one lead a day, right? So give or take, let's call it 20 to 30 leads, and you should be able to convert one out of every 10. So if you have 20 leads come in, you should be able to get two deals a month. That will take a little time. That's why I really encourage those who are doing PPC to really have a bandwidth. Have some time. You allow it to really work so that you yourself can convert those leads. Those are the best performing KPIs and expectations. The last I would layer on is virtually door knocking.

I love that. Go to dealmachine.com. It's the best door knocking app there is. Use promo code TSOF there. They'll give you a discount. But virtual wholesaling, virtual door knocking is amazing. It's relatively inexpensive, if not free. And then you can go ahead and skip trace the phone numbers as you learn how to do virtual wholesaling another great video right here on my youtube channel would be to go in virtual wholesale and if you go in virtual knock 100 doors you should be able to get a deal out of every 100 doors that you virtual knock if you have questions about virtual wholesaling go over to my youtube

and search virtual wholesaling. I have a training on that right there on my YouTube. If you guys like this, make sure you've liked this video. Make sure you hit the like button. If you like this podcast, make sure you subscribe to the podcast on iTunes and give me feedback, genuine feedback. Hint, five stars is best.

Genuine feedback on iTunes would be awesome. Make sure you're subscribing, giving feedback. I drop a podcast a day on iTunes and I drop a video a day on youtube.com forward slash Justin Colby. I look forward to talking to you guys all on the next podcast. I am out. Peace.