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How Many Deals Will I Get From The Automarketer?
Joe: Hey, it’s Joe. I’ve got another question here. This one is from Erica Jansen. “How many deals should you get from the Automarketer system?” That’s a good question. It’s really hard for us to be able to tell how many deals you’re going to get personally because I don’t know your skill level. I do know how many leads come in. If you have a very low level of skill, if you get 100 leads coming in, and you convert one of them, you’re doing pretty good. You know, it takes 100 leads, and it takes 100 real conversations with sellers before you actually get good at this. And, you know, my goal for my students is to tell them do 15 to 20 real conversations per week where you don’t get off the phone until they’ve told you no at least five times. And the way you do that is, you just keep asking them questions. You use the script that I give you, and you keep asking them questions about their situation until they keep telling you no and then eventually you say, okay, I get it. But you have to learn how to do that because the reason they’re saying no is because they don’t understand what you’re doing, they don’t trust you, and they don’t think you have the solution for the their problem. So you have to help them understand that. But you can’t really help them understand what their options are unless you know what their situation is. So you have to ask them questions to find that out.
Joe: So, anyway, you’re going to get leads and you’re going to be better at converting. And somebody who’s really good at converting is going to convert 1 in 3, 1 in 5 of those leads. But somebody who’s terrible at it is not going to convert any of them until they learn how to do it. And sometimes it takes 50 or 100 conversations before you do that. If you make, you know, if you make 15 or 20 calls, real conversations, per week, that’s going to take you 8 to 10 hours a week. You know, if you do that over the next 5, 6, 7, 8 weeks, you’re going to probably put together a lease option memo. And then you’re going to have to put together a deal through that after you do that. And that’s how you’re going to learn. That’s why I tell everybody give yourself 3 or 4 months before you can expect to make any money in this program. And that’s if you put in the time and do the work. If you don’t put in the time, if you don’t do that work, if you don’t follow through with the process the way that I teach, you won’t make a dime. So, follow through with the process and you’ll make it happen.
Joe: So as far as the leads that come in, though, we’re seeing response rates that are very high. So depending on the amount of leads that are in your area, and you can go into Craigslist, you can look in your area and you can say, how many people are selling For Sale By Owner? And let’s say there’s 100 people that come in every few days. So, let’s say 100 people a week, let’s say come into that system. If you send out a text blast to those people you’ll probably get 10 to 20, I’ve seen as high as 40, responses from 100 people. So I’ve seen, you know, 10%, 20%, 40%, 50% — I’ve seen 70% response rates on texts. Text is amazing.
Joe: On email blasts, we’re getting a 2%, 3%, 4%, 5%, the average is 4.5%, across the board for the email responses. Email responses are much slower and take a lot more time. But they’re included in the program right now. Eventually we’re going to get rid of the email campaign process altogether and focus on text and voice blasts altogether. So I’m not sure how soon that’s going to come, but that’s going to be coming eventually in the system. So using text makes a lot more sense. You’re going to get a lot more leads and they’re going to be higher quality of leads, and they’re going to come in almost instantly so when you start the campaign, you know, within 10, 15, 20 minutes, you’re going to have people returning your text, you know, wanting to talk to you about what you’re doing. And that’s a phenomonal thing to have because it gives you a chance to get up to bat, learn how to talk to these people and get good at it. You know, until you have a chance to get up to bat, it’s not going to happen.
Joe: Now, again, you don’t have to have the Automarketer to do that. You can make cold calls to these people on Craigslist that are For Sale By Owner, and just ask them, “Would you consider selling your home rent to buy rather than selling it outright?” And if they say yes, you put together the lease option memo. If they say no, then you ask them questions about their deal, and that’s a lot about what we’re talking about on these videos and what I talk about in my training and my books and the mentor program. It’s all about learning how to make an offer that can be accepted.
Joe: The rest of his question here is, “In the last two months I’ve sent out 884 new messages in the follow-up system and I was able to get 5 memos from this and 3 of those fell apart, leaving me only 2 to sell. I got about a 10% response rate from the 884 to say yes or maybe, about 85 or 90. Out of those 85 or 90, after talking with each of them on the phone, I only got 5 memos. Some of them, I was never able to get hold of. I’ve been doing this for a while, and I’ve sold 10 deals in the last year and a half. What am I doing wrong? Could it be that I’m a realtor now and I wasn’t before?”
Joe: Being a realtor doesn’t make a difference. As a matter of fact, being a realtor can help you in a lot of ways. So that’s not the issue. Being skilled on the phone is good, but let’s look at your numbers here for a second here. You’ve got 90 leads, you’ve got 5 memos out of that. That means that 1 in 10, 1 in 20 of those deals, you know, 1 in 20 of those leads you got a memo out of. That’s not bad. That’s not bad at all. You know, and so it’d be nice if you could 1 in 3, 1 in 5, but 1 in 20 is not too bad. And if it takes you, you know, 15 minutes to call, it means how many deals did it take, or how many times, how many calls did it take you to get a memo together? You know, if it was 15 minutes, 4 is an hour, you know, times, you know, if you did that, you talked to 20, that’s 5 times that, so you talked to people for 5 hours. Five hours to put together a deal that is going to potentially make you $5,000 to $10,000 when you get it closed. That’s not a bad closing rate. Now, you still have to sell that property, but it doesn’t take that much time or skill to be able to do it, you know, doesn’t take that much time to sell the property. So I don’t think that’s necessarily a bad response rate that you’re getting. You’re getting a ton of leads, and you’re getting a lot of them that are saying yes. So I think that you’re not doing anything wrong.
Joe: As far as, the problem here is you got 5 memos and 3 of them fell apart. That’s the issue that we need to talk about, I think. If you had gotten all 5 of those, and you made $5,000 from each one of those people, you know, how many hours, you know, and so you got $25,000 came in from those deals. You know, how many hours do you have into that? If you had, you know, 5 hours on the phone and maybe another 20 or 30 hours doing something else, and made $25,000 for a 40-hour week, not bad income. Not bad income at all. And now it takes time for you to do that, but if you built a funnel where you had a bunch of these coming in and it was happening as a regular thing, and you had people that were closing these deals for you that didn’t cost you very much money, then it might make sense to make that happen.
Joe: Now, the fact that three of those memos fell apart — why did they fall apart? That’s an important question in this process. Most of the time they don’t sell because the monthly payment is too high. If you, your price on the property, when you’re selling on a lease option, if it’s too high, that’s okay. You can usually sell a property that’s a little bit over market value. I’ve sold properties substantially over market value in upside down markets. But, if I go over the market rent that’s when problems arise. If you put the property onto Craigslist or onto Zillow, and you’re getting 2 or 3 or 4 responses from buyers every week and you don’t get that thing sold in a month, it’s because your monthly payment is too high. You’ve got to get your monthly payment down into a place that fits at market rent or below. So just lower that price. Because what you’re competing with means that it’s not, you know, they’re beating you out. People look at between 18 and 23 homes before they buy one, on average, according to the National Association of Realtors, and they’re going to buy the very best property that they can find for that money. So if yours doesn’t compete, you’re not going to win. And the thing that people are looking at when they’re buying lease option is that monthly payment. That monthly payment is vital to being able to sell this. And you’d have a better chance of making that work.
Joe: It’s also possible, and I see this happen in my students all the time, that you know, when deals fall apart, they fall apart because you didn’t build a relationship with the seller or that they don’t trust you or they felt like what you were offering them isn’t working. So you need to solidify that deal. Don’t always take yes for an answer. You know, I tell you you’ve got to take 5 nos before you hang up by phone. So don’t take no for an answer, but also don’t take yes for an answer. Just because they say yes to you doesn’t mean, okay, good, I’m going to go to work. You’ve got to talk to them a little bit and make sure they understand what you’re doing, how you’re doing it. Make sure that they’re on board for doing it the way you need to do it in order to get it sold and once that’s done, then you can move forward and keep in touch with them using the follow up system that we’ve got. You know, there’s a series of emails that we send out to people after we sign them up that helps educate them and explains to them what we’re doing and how we’re getting it sold, and makes it easier for them to work with us and trust us and know that we’re getting the job done. So that’s the reason that deals like this fall apart.
Joe: And, of course, if I could talk to you in person it’d be a lot easier. Actually, Erica’s in my mentor program now and we have discussed these things in detail, but I thought I would answer this question on these videos as well because I thought it was a valid question and I think it makes a lot of sense and I think a lot of people are running into these same issues that are working in the Automarketer that don’t have the benefit of working with me in the mentor program.
Joe: All right. I hope that helps. Good luck.