How to Pay for ALL Your Marketing with Dead Leads

nowHey, Insiders, JP here…

Today, I want to talk about one of our recent monthly Q&A calls, which is where our Insiders can ask their most burning questions, and Patrick and I try to provide some helpful answers. So, one of our Insiders asked about locating an investment-friendly Realtor. After thoughtfully answering this, I was reminded of an extremely powerful tool that I’m going to devote this entire lesson to…

So powerful, in fact, that we use it in our own investing wholesale business. You can actually leverage leads that come in and never buy the house from people – but use those leads to pay for all your marketing.

So, what is this simply glorious tool I speak of? Well, a great investor and owner of an outsourcing company for real estate investors – Robert Nickell – shared the answer with me and it blew my mind…

And the powerful tool Robert spoke of is… Realtors.

Keep reading and I’ll explain…

Romancing the Realtor: It all Pans out

You’re panning for gold with leads, right? You’re trying to get the gold nuggets to come to the surface and those are the ones that you’re most interested in buying. It doesn’t matter what kind of real estate investor you are… the part that most investors are missing (and this is where the beauty is) is that all of those other leads are worth something.

There’s actual value in those leads. And if nothing else, those are people who have at least shyly raised their hand and expressed some interest in selling their house.

Well, how much do you think those leads are worth to a real estate agent? They’re worth some pretty good money.

So, what you do is make some standing arrangements with a couple of real estate agents from different areas. These guys are like market experts in their own areas. When I say a market expert, I’m talking about somebody who has their name up everywhere.

For example, we have one guy here in Memphis named Chet, and he has created a brand for himself. It’s something like, “Chat with Chet” or “Check with Chet” – I don’t even have to remember Chet’s exact slogan – the point is, it’s catchy enough for me to even vaguely remember his name and who the heck he is.

So he has a slogan and a picture of his smiling face, and he has blanketed a couple zip codes with his memorable signage and basically staked his claim and ‘owns’ those areas. That guy is truly a market expert and because of that, I’m going to use Chet as an example as I break down the steps for leveraging Realtors.

Brief Disclaimer

It’s important for me to remind you to check with your attorney before you take any action or inaction from anything you learn from us today. This is your business – you should run it like a business and that means doing your own due diligence by consulting an attorney. Just sayin’.

Got it? Good! Let’s get going then…

How to Make Money with Realtors in 3 Easy Steps

Step #1: Reach out to the Right Realtor (a Marketing Guru)

Call up ol’ Chet and say:

stupid“Listen, Chet, I’m just wondering if this might be a good fit for you. We’re generating a lot of leads in our business right now, but our business is not like yours. We’re looking for the most motivated sellers on the planet and that’s probably 2% of the people we end up talking to, but a lot of these people aren’t interested in selling to us. And, a chunk of those people are in your area of expertise. Would you be interested in us referring those leads to you? You just pay us a marketing or referral fee.”

And, you work out an arrangement with Chet, and Chet of course says, “Heck, yes!”

Step #2: Filter Dead Leads and Refer your Realtor

So, as you’re filtering through leads, and in your initial conversation with a seller, you get the impression that they’re just not going to work for your purposes, you say this:

“Hey, Mr. Seller, we really appreciate you reaching out to us. After reviewing your property information, it looks like this is not a good fit. However, I can help you get the most money possible for your property by referring you to one of our expert advisors who can help you get absolutely the most money possible for your property…

“So, Mr. Seller, I’m going to have Chet call you this afternoon. He’ll set up an appointment, and in fact, why don’t you just let me go ahead and set an appointment for you? Will this afternoon be a good time for you? Well, what time works for you?”

Then make an appointment for Chet on his calendar and he’ll then go meet with the motivated seller.

Step #3: Make Money for your own Marketing

Because you’re sending your dead leads to Chet and he’s closing on those deals, you get the Realtor referral fees.

Know what that means? It means not only will you be making money off your good leads – but now, you’re making money off your dead leads too!

What you want to do is then take that earned referral fee money and invest it into your marketing. I actually have an investor friend who pays for 100% of his marketing expenses by doing this. It’s brilliant.

The End: The Unsaid Takeaway

It pays – literally pays you – to be a creative thinker when it comes to real estate investing. Today’s lesson is the perfect example. We took dead leads that cost us time and money and turned them into revenue-making machines! Keep your eyes and your minds open and you will come up with your own genius ideas, too.

jpComments for the Community

What creative thinking tips do you have to share? Drop ‘em in the comments section below.

2 Responses to “How to Pay for ALL Your Marketing with Dead Leads”

  1. Gamal Shafik Reply

    Amazing info JP,
    Do we ask agents to sign for RESRA or qualified leads agreement ?

    • Hey Gamal! good question… I don’t even know actually. I haven’t been licensed since like 2007 or something like that, when I retired my license. Today I’m an unlicensed investor. So I’m a little fuzzy on the right forms and whatnot for Realtors in this situation. If you’re licensed, definitely ask your broker what forms you need to get paid on a referral. If you’re not licensed, my non-legal-advice giving thoughts would be to maybe just have the Realtor pay you a “flat marketing fee”.

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