Most of you are already aware that I've been out of state the last few weeks. Public speaking is certainly exciting, but can be quite frustrating dealing with all the airline delays, lost luggage and more. Haha - We survived though, and had a great time meeting many of our members and readers in person.
It's amazing how many interesting people there are, but such little time to meet and get to know. I want to thank all of you for your support, referrals, membership, and kind words.
Now, onto the subject at hand. During these travels, I have been of course, speaking about FSBO Marketing. After each presentation, my group is flooded with members of the audience with questions, stories, and current issues.
Lately I've been taken aback by how much money is thrown at some of the marketing campaigns many lenders and realtors are using. Apparently more and more of oyu have turned to direct mail, radio ads, and magazine ads.
First off I want to applaud those of you who "get it." In a rough market, the absolute worst thing you can do is stop advertising "because money is tight." If your marketing activities are bringing in a certain level of income n a good market, and you spend less money and do less marketing in a slow market, all you accomplish is to seal your fate that you will earn less money than ever before.
Unfortunately, it seems most take this defensive reaction to a slow market and ultimately pay the price with their income. But on the opposite end of the spectrum, we have those who are spending more than they ever have before.
Let's do a quick cost comparison:
Direct Mail - average response of less than 1/2 of 1% = $3,500 - $5,000 spent to generate 100 leads (If you're going to use direct mail, avoid the "mass send" approach and focus instead on a small niche. Your results can far exceed the industry averages with a more focused approach)
Newspaper ads - Display/Box ads - Range between $450 for tiny ads - $4,000 for large page ads. These costs are for 1 weekend or less for most large metropolitan areas, and require a 2 - 4 cycle commitment/contract. = $3,500 - $7,000 spent to generate 100 leads (Small classified ads are cheaper to run and probably a better use of your money to generate leads. Be sure to run multiple classifieds in various areas with classifieds for best results)
Buying leads - I don't think I have to say much here. Most lenders and real estate agents have purchased leads at one point or another. The results are just not what they used to be. Despite what the ads may tell you, the industry average closing ratio barely tops 2%. At $25 - $40 per lead averages (Live transfers top out at $100 per lead), you're looking at spending $2,500 - $4,000 per 100 leads.
The fact remains that the more you spend to generate your leads, the less your return on investment will be initially. With several thousand dollars to earn back before you see a profit, these methods are not the most efficient way to generate business. (Please note that there are always exceptions to the rule, as there are some who have a campaign dialed in far better than the average lender or agent, and it makes financial sense for their situation - these comments are aimed at the average performing lender and real estate agent)
But what if you could spend less than $200 per month to generate 100 quality leads per month? Less than $150? If your cost per lead generated is $1.50 per lead, then your potential return on investment has just gone through the roof.
Even better, unlike buying your leads, you no longer have to worry about someone else selling that lead to dozens of your competitors. (Been there, done that, right?)
If you've planned your campaign properly, then you'll build quite the database of qualified candidates during this process, and sooner rather than later, you'll find yourself with plenty of prospects landing in your pipeline month after month. (This means you should collect email addresses from every FSBO prospect and potential buyer. Ask for permission to send value added information)
Yes, there is a cost to doing business. But this does not mean you have to waste money either! A properly executed FSBO campaign can generate business quickly, efficiently, and cost effectively. The key is to use a proven campaign, and trust in the marketing. You have the ability to earn!
Don't forget to visit www.fsboleadportal.com <<< New marketing tools have been added to the campaign
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