Anyone can start a business, but if you want customers, you’d better be marketing.
The million dollar questions are:
- what’s the most effective way to market?
- how much should you be spending?
How to market depends largely upon which audience you want to reach. Those over 70 may not be using the internet and, if your target audience is 18-25, you’d better be on Twitter.
But for the majority in the middle, a “layered” approach is best. By “layered,” I mean using lots of different media. First, of course, be online. You need at least one website. If you can, blog; write online articles; share related information with others online. This puts you higher in Google search rankings so clients find you when they search.
We also depend heavily on direct mail marketing. It’s important to use marketing sources that allow you to drill down to a specific audience. As an example, for buying, we pick neighborhoods we prefer and then detail further to find properties we want. Some drill-down items include: age of home, owner or non-owner occupied, age of mortgage, probate, free-and-clear, etc., all directed at getting to the specific seller you want to buy from. We then mail to those targeted homes with the message we want them to receive.
Be in neighborhood newsletters, put signs in yards of homes you acquire so neighbors see you purchasing in their area and how quickly you renovate and resell or put in a tenant. When we buy a property, we mail letters to the neighborhood giving them the property details and inviting them to the open house. Many neighbors show up at open house only to ask if we can buy their home, too.
The more ways you can get your marketing in front of the same customer, the better. Statistics show that a prospective customer needs to see your message seven to nine times before they act on it. This explains the redundancy of TV commercials!
How much should you spend on marketing?
Did you know that the auto industry spends $400 for each car they sell? Have you ever questioned what big companies spend to get you to buy? I guarantee you have a different opinion of a BMW than a Ford than a Lamborghini. Is that from personal experience, or from marketing?
What are you spending for your marketing?
At the beginning, we spent about $2500 to buy a house. Over time, that number dropped to $1500. Now, it’s even less. You will spend more at the beginning because people don’t know who you are or if you’ll still be in business six months from now.
Track your results.
Finally, it’s extremely important to track the results from your marketing. If you don’t track, you won’t know what’s working (that you should do more of) and what’s not (that you should eliminate or modify).
When we started, we checked out about 100 properties to buy one. 100 properties leads to 10 solid conversations to make 3 offers to buy one home. Our numbers are better now, but the skill with marketing and communication takes, like anything else, time to improve.
Over time, your marketing builds your credibility. The only way to build a business is through communication. It’s important that you communicate consistently so people will believe you (credibility) and respond.
Marketing is essential.
It takes money and it takes time to build the level of business you desire. If you don’t have enough business, you’re not spending enough on marketing and/or your marketing is not effective. Whether or not people can find your business and believe in your product is a direct result of your marketing.
How effective is yours?
Today, we FINALLY no longer have to create our own marketing. Since purchasing our HomeVestors Franchise, they do all the marketing. We tell them where to market and how much to spend, they handle the rest.
And HomeVestors has given us instant credibility. They are a national brand with a national reputation and have a proven track record developed by purchasing over 60,000 houses since 1996.
Our marketing has changed a lot over the years – who we mail to based on what we want to buy. My main directive to you is: start marketing the message you want to send to the audience you want to receive it and, most importantly, never stop. We mailed to the same 5400 houses for 4.5 years. In that time, we purchased over 100 houses.
Consistency is key.
To find out more about letting HomeVestors take over your marketing headaches, contact me through the comment section below or click on my photo and let me know how to get in touch with you.
Here’s wishing you tremendous real estate investing success!