“Stopping marketing to save money is like stopping your watch to save time.” Henry Ford
Marketing is the lifeblood of your business. Marketing can be compared to oxygen to the human body-it’s essential for your body’s life, and marketing is essential for the life of your business. It doesn’t matter how much knowledge you have, without marketing in one-way shape or form-you will have no business. Unfortunately, marketing is one of the most underused and overlooked ingredients in many businesses. In addition, there is no silver bullet for marketing and what worked six months ago may not be effective now. Finally, you normally have to utilize several methods of marketing in order to maintain enough leads to run your business at a higher level. It is the single most important ingredient in determining your business success.
Before you determine what type and methods of marketing you’re going to utilize, it’s important to ask yourself a few essential questions about your business.
When you first considered getting into real estate you probably didn’t have much of a plan in place as to what type of real estate investing strategies you would use in your business. You also probably considered doing business in your locality and somewhere near where you live. You might even have heard about certain areas that seemed better to invest in than others. However, that’s probably as far as it went.
It starts with a good business plan, which gives you an idea of the direction(s) you will be going in business and the strategies you will employ to get there. You then have to take that basic information and figure out a way to successfully market to those areas for potential buyers and sellers that are consistent with the specific investment strategies that you have chosen. Then you need to determine the areas or areas you plan on investing in. In marketing, we refer to these as farm areas.
In determining a farm area, the first thing you need to do to become familiar with the overall state of the real estate market in your local area and if there are properties there that fit within your investing strategies. An investor can make money and successfully invest in any market, but you have to use the correct strategies. Having a trusted advisor or even better, a mentor can be invaluable at this point in steering you in the right direction.
There are literally dozens of ways to market and it’s not uncommon to use more than one method for a particular area. In addition, you many times have to repeat your marketing more than once such as sending out mailers. The fact is- you absolutely, positively have to market on a continuous basis!! You should spend time with your team members, mentor and mastermind group on the types of marketing that will yield the best results for you.
Let’s look at some free or at least low-cost ways of marketing:
Here are some other ways of marketing. They aren’t free but they work!
Track your responses and look for a least a 2 to 3% response rate with a mailing.
Your Message. Depending on whom your target is, your message needs to be consistent. Use whatever you already have to build credibility. An example might be a veteran that served in the armed forces. Another example might be a retired or current police officer, fireman or schoolteacher. For some of us, we may have to do a little more digging, but the fact is we all have some uniqueness about us and should use that in our marketing. Your marketing needs to be more about your customers more than about yourself. Put yourself in your potential sellers’ shoes and try to feel what they are going through.
Follow-up. It always amazes me that people will spend literally a few hundred dollars and quite a few hours in order to get a marketing piece designed and mailed out. Soon they start to get calls and often they take days or weeks to call the potential seller back. Personally I like to try to take my calls live but your situation may be different. No matter what – your goal should be to call every potential seller back the same day or at least within 24 hours! If you think that you’re the only person these people may be talking to, you are probably wrong.
It is vitally important to have some sort of a follow-up system in place such as CRM software. This has calendars and allows you to set times to do the follow-up. Many new investors don’t follow-up because they are afraid the seller may tell them “no”.
A consistent marketing plan is a very important factor as to whether your business will be successful, average or even unsuccessful. Unfortunately marketing, just like other business maintenance aspects such as bookkeeping and networking, tends to get swept under the rug for many of us, especially when we get busy.
Our course on Marketing for Motivated Sellers is a complete guide to successfully marketing using the latest tips and technologies. It truly can put you a step ahead in your business!
Attorney William ("Bill") Bronchick, host of Legalwiz.com, has authored six best-selling books and is sought nationwide for his 25+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the Executive Director and founder of the College of American Real Estate Investors. Click on the "About" link above for more information on William Bronchick. Frank Pulley is an experienced real estate investor and foreclosure specialist. He is the director of William Bronchick's Coaching and Mentoring Programs. For more info, contact [email protected]