How Many Sellers Do I Need To Call To Get One Deal?
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How Many Sellers Do I need to Call To get One Deal
Joe: Hey, it’s Joe. Next question here. “I just started using the Automarketer system and I sent out a hundred voice blasts and a hundred text blasts. The response rate was pretty amazing at about 35%, almost seventy leads.” Wow – great. “But I haven’t put together any deals yet. It’s been a couple of weeks since the leads came in and I haven’t called them all yet, but you’d think that by now I’d have a deal together. I’m not sure if it’s the quality of the leads or my ability on the on the phone. I feel pretty good about talking on the phone. I’ve been in sales most of my life, but somehow I’m not getting the memo’s signed. How many leads do I need before I can expect to close a deal?”
Joe: It’s not just the quality of the leads. It’s your skill. It’s your abilities. You have to be able to sound credible to the people that you’re talking to. And you also have to listen to their problem. I, if you’re in my mentor program, what I would do is we would do a role play and you would be the investor, I would be the seller and we would do a back and forth dialog so I could hear what you’re saying to them and that would pretty quickly point out where the problem is.
Joe: Usually it’s just because you don’t know the language yet. You’re not fluid with it. And you can’t think on your feet yet. Simply because you’re trying to remember too many things at once. You know, all this stuff may be new to you, and you know, just talking to, you know, twenty people is not going be enough to make that work for you. So give yourself more time, talk to a hundred people before you can start sounding fluid at all, and some people it takes even longer than that.
Joe: You’ve got some sales skills to start with, so it should be a little bit easier for you to learn the language, but you still need to learn that language. You need to come across as credible, as ethical and that you have a real solution for the problem that these sellers have. And the only way you’re going to have a real solution is if you listen to them and ask them questions about their situation so you can find out what the problem is. Diagnose the problem before you give a prescription for the medicine that they need.
Joe: Because what they, what you’re going to offer them isn’t necessarily what they want, but it still may be the best choice for them. You know, if I go to the doctor and the doctor says, “Joe, you’ve got cancer you know, and I say, “No, I don’t want cancer.” That’s not, that doesn’t work. He has to, he says, “Well, you’ve got some options. You know, if you don’t want to die, you’ve got some options. You can have chemotherapy. You can have radiation. You can have surgery.” And, whatever the options are today. And I have to pick amongst the bad options that I have.
Joe: Those are my only options. If I don’t do one of those things, then I die. So I have to pick a solution even though it’s not the solution that I want. You know, if somebody says, look, I’ll do this lease option deal with you, but I want $20,000 down. Well, they’re not going to get $20,000 down. That’s not going to happen, so what can happen? And if you go into the Automarketer there’s, into the lead sheet, there’s a button there that says “Seller Options,” if you click on that, it’ll open up a list of the options that sellers have when they’re trying to sell a property. And it shows all the different ways that they can sell a property. If you understand what those are, you read through it, and you understand it, you use it as a little cheat sheet as you’re talking to them, it’ll make it easier for you to explain it to them.
Joe: “Well, you can do this, or you can do this, or you can do this. Or, if you want, I can do this for your, or I can do this for you,” and you give them the different options that you have, whether it’s subject to, or multi-mortgage or land contract or a lease option, or assignable cash deal, you have that zero-down hierarchy structure, you know, structure hierarchy that you can throw out at them and say, “I can do one of those for you if they make sense.” And if you listen to them, you’ll know which one makes the most sense.
Joe: Now, there may be two or three that make sense for you, but one that makes more sense for you than another one, so you may not give them an option to do one of the ones that don’t make as much sense for you. You give them the option to do the ones that make sense for you. Because if you’re not going to do it, nobody else is going to do those types of deals with them. Nobody else will understand how to do those deals with them. That’s why it’s so vital that you understand not just the for rent method, but also the zero-down hierarchy.
Joe: So that brings us to your question, I guess, how many seller leads to I need in order to get one closed? You know, once you get good at this, if you call three people, cold call them from Craig’s List, that have their properties for sale, one of those people will say, “Yeah, I’d consider selling rent to buy.” And out of that, out of those people that you talk to that say yes, then it’s probably one in three to one in five that you can get a signed lease option memo on.
Joe: Now if you send out an email blast or a voice blast or a text blast to the list using the Automarketer, and the leads respond and say, yes, I’d consider that, or yes I might do that with a down payment or tell me more I don’t really understand lease options. If that’s the case, then of those people that you’re talking to, you have to talk to fewer people, so you’re talking to maybe one in three of those leads or one in five of those leads, depending on your skill level and a little bit of luck on that as well.
Joe: Now, when they fill out the form, you know, if you send them a text blast or you use the follow up system with a text blast and they fill out a form, you’re going to get a lot fewer of those leads, but those leads are going to be much higher level quality and the likelihood that you can close 75%, 85%, 90% of those types of leads is very, very high if you have skill talking to these people. So, first thing, develop the skill, then you can start looking at these conversion rates that are very, very, very attractive, which means that you know, almost, and when I talk to people that have been doing this for a long time, I’ll ask them, “So how many people do you have to talk to before you get one to say yes?” “Well, everybody I talk to does it with me.” And we find out that they only talk to people that are actually ready to go because of the way they’ve set up their business. And that’s where you want to be eventually, so that almost everyone you talk to closes a deal with you.
Joe: All right. Hope that helps.