The Science of Flipping - When Is The Right Time To Invest In Marketing To Bring In More Leads

Starting point is 00:00:00 what is up everybody what is up welcome back to the science flipping podcast i am your host justin colby and if you are just listening to this i would tell you right this second you need to get over to youtube.com forward slash justin Colby because you need to be watching me and the antics that I am putting forth right now on this episode. Go subscribe because not only are you going to see and watch my YouTube videos in terms of my podcast, but you'll also be able to get an extra three videos each and every week that have all things to do with business, real estate, and entrepreneurship. So make sure you are subscribing, youtube.com forward slash Justin Colby. Now let's get into this podcast because it is all about you, the real estate investor, someone who's looking to get started or someone who is looking to scale their business. Now I'm going to again actually take a subject that i was asked about about one of my

Starting point is 00:01:07 high level elite students the students i basically break it up into two i have kind of newbies and they go through a level up coaching program and then i have the elite that go through an elite coaching program this actually was asked to me by one of my elite members that I want you, the newbie and or inexperienced investor to know. The question goes, when is the right time to pour gas on marketing and bring in a lot more leads? And I had to sit there and think about it for a second because I'm an aggressive personality when it comes to this business. I like more leads the better, but I have one criteria that I need you to know for you to make the right decision for you. And that is how much time do you have to allocate to working those leads? Now, if you are a solopreneur, this specifically affects you.

Starting point is 00:01:59 You have one or two ways to handle this. A, you're going to spend your time or you're going to spend money driving in these leads. So let's just say you have the money to pour to handle this. A, you're gonna spend your time or you're gonna spend money driving in these leads. So let's just say you have the money to pour gas on it. You are gonna go find your American Express card and you're just gonna run it and put $20,000 into marketing and pour gas on your leads. That is great. And while you have the money to do that,

Starting point is 00:02:22 do you have the time to handle the leads? Because one thing I know to be true, roughly 60 to 80 leads per acquisition person. That's the sweet spot. Anything over that, and 80 is really capping it out. Anything over that, you're actually not helping them work efficiently and effectively, you're actually gonna hurt them.

Starting point is 00:02:44 Are they still gonna be able to hurt them. Are they still going to be able to get deals? Are they still going to get the low-hanging fruit? Absolutely. But they're also going to feel a tad bit overwhelmed because not only do they have these leads for this month and they're putting some in a nurture program and they have to nurture them over the next coming days, weeks, and months, but they have another 60 to 80 coming next month and the next month and the next month. And meanwhile, they're continuing to put these leads into some level of nurture and contract deals. You are really actually hurting them. So here's the answer that you should be looking at, or you should be considering. Do you have enough money in viability in terms of profit to start hiring? Or if you don't, are you actually able to convert

Starting point is 00:03:27 better? Right? So he specifically then went in to say, I really want to start cold calling. I want to be able to bring in, you know, five to 10 more leads each and every day. And now this person is looking to hire another acquisition person. So I said, until you can get there my advice is not to pour gas on it yet but to maybe use some higher motivation type marketing such as pay-per-click advertising to bring in better qualified leads that don't have the volume as a wholesaler as an investor that does their own marketing understand this cold calling and text messaging can help you go wide and reach more people it also brings you more opportunity however you have a lack of uh motivation typically because you're doing what i consider to be outbound marketing you're doing proactive marketing

Starting point is 00:04:18 and so for me i would tell someone who's looking to just get more deals done and has a budget. I Like pay-per-click advertising as a better route. Is it more expensive? Yes, but I can tell you right now I've started doing our own in-house Nationally and it's working now I will tell you if you're looking to do pay-per-click advertising in one market your market the very best company There is hands-down is geolip.com. Let them know I sent you. I think they make you fill out a form. You can say, hey, I heard about you through Justin Colby of the Science of Flipping. Geoflip is that company for you. But if you are looking to go nationally like we've started to do, we are actually doing it ourselves. And what I like

Starting point is 00:05:02 about it is we're currently getting a 5 to 6x. So for every dollar we're putting in, we're essentially getting five or $6 out. Now it started slow, but this is why I advise someone at my students level to say, I would rather you do that than to go hire a cold calling company and go super wide because you don't have the people to do manage the leads, right? Even if you yourself are managing them, as I mentioned, the sweet spot is 60 to 80 leads at a time. That's as much as anyone can handle. So if people are, again, not only bringing in that many leads each month, but then also having to nurture and follow up and contract and all the other stuff that goes through to get these deals you're really just not doing yourself a favor at that point right so it comes down to a couple things here again budget how much money you have to

Starting point is 00:05:54 throw out marketing to time how much time do you have to throw out marketing in the sense of once leads come in and if you are high on budget and low on time I would then go to point number three, higher motivation, less lead. That would typically be PPC or direct mail. If you are high on time, meaning you have a good amount of time or you have the staff, something like I have, where I essentially have three acquisition people, not to mention I'll jump in if I really need to I have enough people that I can bring in a volume of leads so I have money and I have time in that sense I love cold calling love it to death and if you are interested in who I'm using all that uh just send me a note write it in

Starting point is 00:06:39 a comment below here if you're watching this on YouTube otherwise you can send me a note uh you know through Instagram or Facebook or whatnot. Now, I'm happy to put you together who I use for cold calling. But again, if you're low on that time constraint, then I need to know that you need to go to higher, higher volume, higher, more motivated volume. Sorry I would, sorry, I'm laughing guys. I was just trying to get ahold of my videographer and she won't get off her phone. So I'm dying. So I think it is really important for you to understand your own strengths and for you to understand where you're at financially for those

Starting point is 00:07:25 that are just getting started this goes right back to why I would encourage something like door knocking right or something like calling for sale by owners because you know they're interested in selling right but for those that have a little bit more budget or more time then you got to look at what kind of resources you have you're going to spend one or the other or some of you are going to spend both you're going to spend money you're good and spend time that's okay just be realistic with yourself because if you're at a certain level you also can hire and that's the next phase right that's really scaling now I would caution anyone at hiring acquisition first I just don't believe that is the right play.

Starting point is 00:08:06 Do not go out and just start trying to hire acquisitions. Go out and do the work yourself. Make a bunch of money yourself, right? Like my benchmark is about 250 grand. If you're not putting 250 grand in your pocket, you shouldn't be hiring an acquisition person because that person is gonna to make a commission, right? 20% commission off a hundred grand is 20 grand. That's a lot, right? So you're going to be giving away a lot. I would actually rather you do it yourself. Now, once you start to put some

Starting point is 00:08:35 money in your pocket, then we can start talking about hiring. But to synopsize, if you will, if that's even a freaking word, I don't know if it is or not, but to put a synopsis on this, I want you to take a look at your bank account in terms of how much money you have and how much time you have. If you have more time, awesome. Then you can actually be doing the work. Again, I like door knocking. I like calling. You don't need to hire. If you have more money than you have time, you can hire these things out. But ultimately look at the time because you also need to know

Starting point is 00:09:09 you can't just pour leads on. That's not the ticket here. I love that. But if you're not working them effectively, you're literally just torching money, right? But if you are and do have the ability to pour leads on, I love cold calling as the resource for you above all else. If you have more money, less time, pay-per-click advertising is my go-to along with direct mail.

Starting point is 00:09:32 Direct mail is still viable. I don't talk as much as I used to about it because the callback ratio has gone so far down, but it's still very viable and you can still do very, very well with direct mail. So hopefully this helped you guys. It came directly from one of my elite students. If you have any interest in being a student of mine, go to thescienceofflipping.com, fill out a very simple form. One of my top advisors will get back with you to see if I'm a good fit for you. And besides that, guys, I'm going to knock out another podcast right now. So I'll talk to you guys on the next podcast episode. Peace.

The Science of Flipping - When Is The Right Time To Invest In Marketing To Bring In More Leads

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