Episode #005 – How to know when you need online marketing (and how to avoid wasting money when you start)

When it comes to marketing your real estate business, you have many options: Direct mail, bandit signs, yard signs, various forms of online marketing and much more.

Many think online marketing is the best way forward for real estate investors. But there are intricacies.
If you’re considering online marketing, this episode is for you.

You’ll learn to decide if you should advertise online and how to use online marketing depending on the situation you’re in.

Applying what you learned in this podcast could save you from wasting hundreds or thousands of dollars on ineffective online marketing.

Show highlights include:

– How to decide if you need online marketing at all—and when to NOT do online marketing. ([2:50])
– The one question to ask yourself before even considering online marketing. ([5:40])
– What to spend 10-20% of your money on to keep advancing your business without risking ruin. ([8:45])
– The two primary strengths and the biggest weakness of paid online advertising (don’t waste money on ads if these strengths aren’t what you’re looking for). ([11:55])
– What “organic marketing” consists of and when to use it instead of advertising. ([16:00])
– Why organic marketing has the absolute highest return on investment ([18:00])
– The biggest weakness of organic marketing. ([18:25])
– A simple “if-then” rule to determine which online marketing you should use. ([21:25])
– How much budget you should have to get into online advertising. ([22:45])

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group
Need help with your online marketing? Jump on a FREE strategy session with our team. We’ll dive deep into your market and help you build a custom strategy for finding motivated seller leads online. Schedule for free here: https://adwordsnerds.com/strategy

Episode #004 – The Multiple Close Model: How to maximize your online return

You might use online marketing, offline marketing or just get leads through word of mouth.

But no matter how good you are at generating leads with the marketing channels you use, you need to be able to leverage the leads you generate.

This episode teaches you how to get the most out of your leads by implementing the “Multiple Close Model” to make much more money—with the same amount of leads.

Show highlights include:

– What you need to learn from art auctions about real estate leads. ([4:05])
– How to get lower leads than your competitors. ([7:10])
– The characteristics of an investor who dominates markets. ([11:15])
– 3 ways to generate profit from almost any lead you get—even those you think are “lost”. ([13:35])
– How long to follow up with your leads to close the deals (the numbers on this might blow your mind). ([20:45])

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group

Need help with your online marketing? Jump on a FREE strategy session with our team. We’ll dive deep into your market and help you build a custom strategy for finding motivated seller leads online. Schedule for free here: https://adwordsnerds.com/strategy

Read Full Transcript

You're listening to the REI Marketing Nerds podcast, the leading resource for real estate investors who want to dominate their market online. Dan Barrett is the founder of Adwords Nerds, a high tech digital agency focusing exclusively on helping real estate investors like you get more leads in deals online. Outsmart your competition and live a freer, more awesome life. And now, your host, Dan Barrett.

Dan: Hello everybody, welcome to this episode of the REI Marketing Nerds podcast. As always, this is Dan Barrett here from Adwords Nerd. Super happy to be with you here today. Sipping some ice coffee, it's sort of a rainy, gloomy day here in Connecticut, it's the perfect time to cuddle up with a hooded sweatshirt and talk about marketing, which is why we are here. Actually this week's episode is going to be interesting. We are getting a little bit off the marketing path and I want to talk a little bit about more of the investing side of your real estate investing business, I'm talking about the kinds of deals you are doing. This isn't something I usually talk about, because honestly it's like not my realm of highest expertise, and generally I'm really, really focused on that lead generation side, that's what I do. I want to talk about this because no one really talks about it, and it is increasingly important. I see the importance of this more and more as we do lead generation for investors, as I work with investors, as I talk to investors, hand out on message boards and all that stuff, I really see the impact these decisions have on the long term success that you have in your investing business. I want to dig into this, and I want to dig into the multiple close model. I'm going to tell you kind of an uncomfortable truth here, which is that no matter how awesome your marketing is, even if you are invested heavily in something like pay per click marketing or you want to be invested in that channel, no matter how awesome you are at it, when the channel gets expensive, your lead costs go up. So before we get to the multiple close model, we need to take a second and understand market pricing online. This is, I think, really illuminate some issues that you might be having or you might be seeing people have, because there's a lot of confusion about how this works.

I want you to think of online leads. We'll talk about pay per clicks, that's the one that this applies most directly to, but it's also true even in direct mail, and it's true in search engine optimization, all that good stuff, but we'll stay in the pay per click world, that's easiest place to understand. Online leads are going to have a market price, and this market price you can define this as the price the average investor is going to pay when they go and they get these leads from a pay per click channel, whether that's Google Ad Words or Facebook Ads or Bing Ads or whatever you want to. The market price depends a lot on the level of competition in your area. So let's say, I'm going to pick a market at random, let's say you're in Memphis Tennessee. Alright? You are down in Memphis and you are competing, you want to go online, go into a pay per click channels, start generating motivated seller leads. Well the prices you pay when you first get started are primarily determined by how many other investors are competing there, because all these online marketing channels work on an auction model. You imagine if you go to an art auction, like let's say they're selling the Mona Lisa. I don't know why they would be doing that, but let's say they're selling the Mona Lisa. Everyone's like, "I hate this painting. It's too small." They don't want it anymore, they're selling it, and they're auctioning off. You go to the auction because you really like the Mona Lisa. Now if nobody else is at the auction, you are the only one, you can pretty much set your price. Be like, "I'll bet a dollar." They'll be like, "Fine, seems cheap, but no one else bid on it so that's what it is." They bang the gavel, you give the dollar, you get painting. But you also understand that if there are a lot of other people that want to buy the Mona Lisa, and a lot of other people at the auction, and a lot of other people bidding and they're big high and they're bidding hard because everyone wants the Mona Lisa, well then you can't set your own price. Prices are going to go up, the competition drives the cost of the painting up. It's the exact same thing that happens with online advertising, pay per click advertising, where the more investors you have that are bidding on the keywords that you want, the higher the prices tend to go.

No matter how good you are at that marketing, the costs in that channel go up, then your average cost is going to go up, that market price, the price at the average person is paying goes up. Now in every pay per click channel there are systems that allow us to lower your lead cost over time. Because it was just set on competition it would be really hard to, you wouldn't be able to make a difference, everyone would get the exact same result. It would kind of be annoying, really be just a game of who could spend the most money. Systems like Facebook Ads and Ad Words build in systems that allow you to lower your lead cost over time by producing really good ads. So Facebook, this is called relevancy, your relevancy score, in Google AdWords it's called quality score, now these systems basically say, "Hey, if you create a really awesome ad, it's really well targeted, the ad is really cool, people like to click on it, and when they click on it they're happy, I'm going to lower your costs. I'm going to give you a break on the market price." And this is because this is when Facebook and Google get paid. They only get paid with these systems when someone clicks on an ad.

If you run terrible ads that no one clicks, Facebook and Google don't get paid, and if you run terrible ads that make people really upset that they clicked on them, people are going to stop clicking on ads in general. And so long term, even though Google and Facebook, they're giving you discounts on the market price, it works out in their favor long term. So over time as an investor, like when you get started in a pay per click marketing channel, you're generally paying the market price, like whatever the competition dictates. If it's an expensive market, it's expensive, if it's in a cheap market, it's cheaper. Over time you can manipulate those systems of relevancy core, quality score or whatever it is in the channel that you're competing in, and do things like split test your ads, cut low performing keywords or audiences. You can test new landing pages, you basically actively manage and work on your account, and over time your costs will come down. You'll start to get cheaper leads than your competitors, which is awesome. It's one of the things that makes this kind of marketing so much fun and can make it really, really profitable. All that is amazing, but the thing to remember is that you are bringing down the costs, you're getting those discounts off the market price. So even if you have the best marketing in the world, if your market price is significantly higher than your friend that you're talking to online, you're still going to have a higher cost per lead than your friend.

Sometimes I explain this like if you think about, you take the world's best negotiator, like hostage negotiator, I'm picturing like someone with like aviator glasses that are reflective, he's got like a gruff voice and he says, "We've got to get those hostages out of there." Like that kind of person. Maybe that's more of like a Rambo kind of charge there and kill everyone sort of dude. You're picturing what I mean, world's best hostage negotiator. He's going to negotiate a price to release those hostages. Now if you put him into situations, one in which the hostage taker starts the negotiation by saying, "We will release the hostages if you give us $100." Okay? And then in another situation where the hostage taker says, "We will release the hostages if you give us a million dollars." So two very different scenarios. One guy's demanding $100, one guy's demanding a million dollars, but you have the best hostage negotiator in the world. No matter how good they are at negotiating, those processes are going to end up in very different places. I think we can all probably guess, but the people demanding a million dollars are generally going to get more in the end than $100 people. Maybe not, but that's usually the case. If you walk into a store and you're in a haggle with someone over buying like a pair of shoes or a rug and the pair shoes is $50 or $5000, you'd be the world's best haggler, but again you're going to pay more for those shoes that started at $5000. No matter how good you are marketing, your market prices affect how low you can really get your lead cost. Even if you have the best online marketing people doing it for you. Whoever you get working for you it's going to be tough to get like rock bottom price if you're in a really expensive market.

Not to belabor the point if you get this, market prices dictate a lot of what's possible in everybody's market, and that's cool. Now part of dealing with high market prices, part of dealing with the fact that you hate... I'm in a market right now it's super competitive, super hot, people are spending a ton of money on ads, how do you deal with that? Part of it is making sure you make as much money as possible when you do get a lead. Because if you can afford to pay more for leads, because you make more from those leads then your competitors, or you can monetize a higher percentage of those leads, well that puts you in an excellent, excellent position to dominate a market. If someone can consistently pay more to get the same leads and make the same amount of money or more, they are going to eat that market over time. It is practically inevitable.

Are you an investor who wants to dominate your local market? Do you want more leads and deals online? Then download your copy of the Motivated Seller Blueprint absolutely free at www.AdWordsNerd.com/get. What are you waiting for? Go to www.AdWordsNerd.com/get right now to get your copy of the Motivated Seller Blueprint

Dan: So making more money on the back end is absolutely critically important, and the question becomes how do you do that? How do you monetize the highest percentage of the motivated seller leads you generate? How do you make the most on the back end? And this is where the multiple close model comes in. I would say the folks that we've worked with that have consistently had the highest success rates, I'm talking about, this real world data based on the work that we do with investors, working with real investors in the real world. This is not theory. The people that have the highest success rates with online leads tend to work some variation of the multiple close model, meaning they have multiple ways to close a deal, This could mean that they are doing different types of deals, it could mean that they have different financing structures or whatever it is, but they have multiple ways of closing. They're not looking for a very narrow band of all people that are going to be the only deal that they can do, they've got a wide kind of top of that funnel where a lot of deals can come in.

This means that a higher percentage of all the leads that they generate fit into this "deals I can close category". Let's kind of make this specific, what does this actually mean? What does this actually look like? I think the most common variation of this is an investor who can flip houses when they want, they can wholesale deals when they want, and they can work with a realtor, or they have some way of making money off of leads that just want retail price. So they have the ability to flip when there's a lot of profit to be made, they have the ability to wholesale when maybe there's profit to be made but they don't necessarily want to do the work, and they have the ability to work with leads that want retail price on their home.

Now the retail price thing is the thing that's probably the least common among investors, but it's a huge deal because when you go into the online space, whether you're doing organic or whether you're doing paid, any of the online channels, you're going to generate fair amount of people that want retail price. This is just a fact of these channels because you can't really target people based on the amount of equity they have, and the guy that's so motivated that he needs to sell his house tomorrow at a penny on the dollar, and the person that wants to sell their house ten years from now and it's just idly curious, they both just type "sell my house" on the internet. Very few people are typing in "I need to sell my house at 70 cents on the dollar". If they were I would target them, but they're not generally typing that in. Right? So you're going to get leads that want retail price, that's just the way that it is, and if you have a way of profiting from those leads, you can offer cover your entire advertising budget flat out. You just take care of all your advertising you spend just off these retail price leads, even if you're not generating a lot of them, and that leaves you a lot more room to go big, go aggressive on the leads that you really want.

You don't have to do it this way, I'm not saying this at all, you do not have to do a bunch of different things. If you're just a flipper, you're just a wholesaler, whatever it is, you do not have to do this multiple close model to be successful, and in fact, we work with lots of people right now who're just wholesaling or just doing flips, but the multiple close model is the most flexible model there is, and it makes things a lot easier on you. Makes it a lot easier to generate cash flow, a lot easier to generate positive momentum, it's just a really good way of doing it if you have the ability to do it. But that's not all there is to do in terms of maximizing your return on the back end.

Another way to maximize your return on your online leads is to make sure you are relentlessly following up. I say relentlessly, I don't mean you are harassing people, I don't mean if someone says "Stop calling me." you just call them more, that's what I'm saying. You need to be following up with your leads regularly over long periods of time, and this is the key even if they do not seem motivated. Because anybody that contacted you via email, via phone whatever, no matter what they say, no matter what they say in that moment, they are capable of making the decision of selling you their home, or letting you put their home under contract. They would not be in the situation where they were at all motivated to fill out your lead generation form if that wasn't at least a distant possibility. And because you pay to generate that lead, anything you do after the fact to make that lead into a deal is going to massively change your return on investment that you're getting. It's incumbent on you to do, and that's a $10 word, right, "incumbent". It's something you've got to do. It's just something you've got to do.

So one of the best ways we found a follow up with people long term is to actually spread your follow ups across different channels. You use email, you use phone, you use text, you use Facebook Messenger, you use direct mail, whatever it is. And it's very common for investors to, someone will fill out the form and they'll follow up via email, they'll follow up via phone, they don't get a response, and they kind of get demoralizing, they get dejected. They're like, "Hey, this isn't working." and they leave that person alone, but I'm telling you that, look, people get busy. You can imagine someone in this situation where they are actually really motivated to sell, they're in a situation where you could really help them. You could really make their life better and they go online to search for "sell my house fast" and they fill out your form, and then the second they hit "send" the dog starts barking, the kid wakes up from the nap, the kid is sick, kid is crying, they got to make dinner, they got a clean house, their boss is jumping down their throat. I mean you can imagine the tons and tons of things that can make you forget that you even filled this form out in the first place. They may have been sitting on the couch watching Game of Thrones or whatever is popular on the date this podcast necessarily, but whatever is possible whatever's popular. They're sitting on their playing with their phone and they fill it out and then they get distracted because dragons kind of breathe fire on everybody and they just forget about it.

If you don't follow up with that person you don't give them the opportunity to remember what they did and to get back in touch with. If you're doing emails and they're not responding, maybe they just don't get your emails. Maybe your emails went to junk, maybe they do the thing that I constantly do, which is open an email, read it, think that I'm going to respond to it, and then close it and forget about it. It's almost a little too real. That's a lot of real talk, but this is a real thing. I'll like open the mail and I'll read it, I'll be like, "Wow, I really need to respond to this, I'm definitely going to respond to it." and then I'll close it and I'll forget it ever existed. So following up over different channels, doing an email, then the next week maybe following up on phone and then if the next week following up via text, next week friending them on Facebook, next week sending them direct mail and then going back and doing phone and email. Doing all these things allows you to find the channel that connects with them. The one they are most likely to respond to. I'm very likely to respond to texts. I'm very likely respond to Facebook messages, but I'm much less likely respond to emails. It's just the way I operate. So by going to different channels and following up consistently over time, you really have the chance to blow up the amount of money you are making from the exact same amount of leads, the exact same amount of money you're spending, but you're getting a lot more on the back end. Throw out there a lot, and I really want you to think about it. More than a third of the deals that are done from online leads happen six months after the person initially filled out the lead form or contacted you. I mean six months went by from the time they filled out your form or were your website to the time that you actually are able to close that deal. If you're not following up over a long period of time, you're leaving a ton of potential money on the table. A lot of people are going to ask like, "Well how long would you follow up?" I will tell you follow up forever. Follow up forever.

You can use systems like Investor Views, is a really good one, but there are a lot of a customer relationship management tools, CRMs, out there that will allow you to automate a lot of your email follow up, automate your text follow up, etc. If someone has filled out a lead form for you and they have not directly told you to leave them alone, I would just follow up with them forever. Because the incremental cost to you is essentially nothing. The cost is all to acquire the lead. Anything you can do to maximize the amount of deals you're getting off the back end is something that's going to make things so much easier for you, and is going to allow you to compete incredibly well in very, very competitive markets. I can almost guarantee you if you are in a competitive market right now and you listen to this, the top investors in your market, they're paying pretty much the same thing that you are to get leads, but they are making more money from those leads. And as they say, it's a more marketing cliché, but it's as true now as it is ever been, the fortune is in the follow up.

So think about that guys, think about these two things that are really going to allow you to maximize the amount of money you make online. This is the multiple close model, being able to close multiple types of deals have more than one way you can make money from a lead and having really relentless follow up. Following up on multiple channels over a long period of time, giving people the chance, the opportunity to come back and work with you, despite the nonstop about of nonsense that life throws at everybody.

I hope that was helpful for you guys. Just like every episode, you can go to AdWordsNerds.com/podcast to check out show notes for this show, as well get a whole bunch of other cool stuff. And if you like this show, we do free trainings in our Facebook group every single week. It's the REI Marketing Nerds Facebook group, go on Facebook type it in, you can find us, or you can go to AdWordsNerds.com/group. The group is all amazing; it is filled with really awesome investors sharing strategies, tips, tricks, data about what's working for them, there are no sales pitches in there. It's an awesome place to hang out. I hope that was useful for you guys, let me know if you have any questions. Hit me up and I will talk to you guys very soon.

Episode #003 – The Parthenon: How to achieve massive marketing growth through synergy

As a real estate investor, you might have heard of many different marketing channels: Paid online, organic online, postcards, direct mail etc.

You might be using one or more of those channels. Even if you’re just getting started in marketing, you need to listen to this podcast if you want long-term marketing success.

Today, you’ll learn the common mistake many real estate investors make when they get into marketing—and how to structure your business so your marketing can be profitable in almost any market situation.

Show highlights include:

– The must-read business book which had the greatest impact on Dans business. ([2:20])
– How to survive the ups and downs of the market with the “Parthenon Strategy” ([4:20])
– How real estate investing seminars might threaten your business. ([10:00])
– How to unlock “synergy” and close deals with leads you might otherwise have lost. ([14:05])

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group
Need help with your online marketing? Jump on a FREE strategy session with our team. We’ll dive deep into your market and help you build a custom strategy for finding motivated seller leads online. Schedule for free here: https://adwordsnerds.com/strategy

Episode #003 – The Parthenon: How to achieve massive marketing growth through synergy

As a real estate investor, you might have heard of many different marketing channels: Paid online, organic online, postcards, direct mail etc.

You might be using one or more of those channels. Even if you’re just getting started in marketing, you need to listen to this podcast if you want long-term marketing success.

Today, you’ll learn the common mistake many real estate investors make when they get into marketing—and how to structure your business so your marketing can be profitable in almost any market situation.

Show highlights include:

– The must-read business book which had the greatest impact on Dans business. ([2:20])
– How to survive the ups and downs of the market with the “Parthenon Strategy” ([4:20])
– How real estate investing seminars might threaten your business. ([10:00])
– How to unlock “synergy” and close deals with leads you might otherwise have lost. ([14:05])

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group
Need help with your online marketing? Jump on a FREE strategy session with our team. We’ll dive deep into your market and help you build a custom strategy for finding motivated seller leads online. Schedule for free here: https://adwordsnerds.com/strategy

Read Full Transcript

You're listening to the REI Marketing Nerds podcast, the leading resource for real estate investors who want to dominate their market online. Dan Barrett is the founder of Adwords Nerds, a high tech digital agency focusing exclusively on helping real estate investors like you get more leads in deals online. Outsmart your competition and live a freer, more awesome life. And now, your host, Dan Barrett.

Dan: Alright everybody, welcome this episode the REI Marketing Nerds podcast. Happy to be here, as always, this is Daniel Barrett. This week we're talking about some really cool stuff. We're talking about massive marketing growth through leveraging this idea of synergy and of using multiple channels. This is something we've been experimenting with a lot in the last couple years, have been really, really great, getting really good results from it. So, super happy to dig into it. As always I'm going to have to show notes over it AdWordsNerds.com/podcast, that's AdWordsNerds.com/podcast. You can go over there, get the show notes for this episode, no need to write anything down. Let's get into it.

When I first started my own business, I first started getting into business and marketing and all the stuff, I did not have a business background, I didn't have any kind of business education, I was really teaching myself everything that I need to know, and I was reading every book that I could get my hands on. I started with The Four Hour Work Week, like I think a lot of people did, by Tim Ferris. I really started tearing through the business section of my local Barnes and Noble. I don't know how many kids today are like, "I need to go down to the Barnes and Noble and learn about business." I think they mostly are going the You Tubes or whatever they're doing, but at the time I was going now to Barnes and Noble, and just literally sitting in the business section and reading the business books. I picked up this book by this guy Jay Abraham, and this book is called Getting Everything You Can Out of All You've Got. It is still, I think to this day my favorite business book of all time. If you have not read it. You have to read this book, it is amazing. But the one idea that I got out of this book that really stuck with me more than anything else, I think, and really made a huge difference on how I ran my business, how we do our marketing for clients and everything, it's this idea of the Parthenon which is what Jay calls this, the Parthenon.

It's this idea that every business needs to have multiple marketing channels going all the time. To break down why this is, Jay is going to ask you to imagine a diving board. So picture like you've got this long, kind of thin thing which is the board where you stand and you dive off of, and then you've got the base, the base is all the way at one end and so it's got this one piece of support. Imagine that the diving board, the board itself, that's your revenue, and that base, the place where the diving board is anchored to the edge of the pool there, that's your marketing channel. You've got one big marketing channel that's supporting the entire revenue board there. Think about what happens on a diving board. Well when you go want to diving board you go up and down, because there's only one point of support, so if you go far into the diving board you go up and down really, really rapidly. The same thing happens in business. If you've got a single point of support for your revenue, which is your marketing channel, you've got one marketing channel, you rely on to bring in your leads, you're supporting this long board of revenue. That revenue is going to go up and down based on what that marketing channel is doing. As the marketing channel shifts so goes your profits.

Now instead of the diving board, which is kind of how most businesses are set up, we want to picture the Parthenon. If you're not familiar with the Parthenon, you have seen it, I pretty much promise you, it's an old Greek building. Imagine your stereotypical Greek, aging Greek building, white and you've got all the columns. Now in the Parthenon, the roof is your revenue. Okay? So the roof is your revenue. It's supported by multiple columns. Maybe you got six columns, three on one side, three on the other. Now does that roof move up and down like the diving board? Absolutely not. In fact the real Parthenon's still standing, however many years later, it's a very stable structure having these multiple support columns. Likewise in business, you want to have multiple marketing channels supporting your revenue. Those multiple points of support, those multiple ways of generating leads, multiple ways of driving new business for investors is going to be multiple ways of finding motivated sellers, that's going to create a stronger support system for your revenue overall, and it's going to reduce the ups and downs of your business a whole lot. Really what the Parthenon is all about is yes it helps you grow because you've got multiple marketing channels bringing in more lead, you're definitely going to get higher volume this way, but really what it provides is stability. It provides support, it reduces the ups and down. This is absolutely massive if you want to generate a predictable source of revenue, rather than going up and down with the day of the week, the time of the month, you know, whatever it is. The seasons, anything you can think of. So that's the Parthenon idea and Jay Abraham talks about in this book. Really, really blew my mind because I was like, "Oh wow, not only do I need multiple channels of marketing, but my clients need that too."

So let's bring that into the real estate investing space. How do we as people that are generally motivated seller lead working with investors, how do we incorporate this idea to what we're doing? Well let's look at what is classically happening for most investors right now. If you ask yourself like where do most real estate investors start when they're just getting started, if you're wholesaling or you're trying to get into flipping, whatever it is, where do people start for generating leads? Some people are going to walk door to door, lot of people driving for dollars, most investors are going to do direct mail. If you ask yourself why that is it's because direct mail is a good mix between scalable, meaning you can send out a lot of them, but low barrier entry. There's not a ton of cost, there's certainly cost involved, but the cost is relatively low, so there's just a lower barrier to entry. Most people understand mail. You don't have to be tech savvy to do it, there's a lot of companies that help you do it, etc. It's a really good marketing channel in terms of scalability, but there's a low barrier entry that means that most investors can get into it. If you are expecting me to knock direct mail in this podcast, I'm not going to do that. I know like I am “the online marketing guy for investors” and that's how people know me, but look, direct mail is awesome. I do not look down on direct mail at all. It is really, really good in a lot of markets, and direct mail has some really significant benefits. Namely you have the ability to really drill down into your targeted lists and develop very highly targeted campaigns based on the amount of equity or all sorts of things. It is really hard to do online in a lot of scenarios, and that is the thing of beauty. Really well executed direct mail campaign is really awesome, and I'm never going to say you should not be doing direct mail. I think direct mail is still really good, but there are some drawbacks to direct mail, and especially drawbacks to having direct mail be your only source of leads. To get why that is we want to talk about disruption, and what to do when you are in a period of marketing channel disruption.

I think a lot of people think of disruption as something that happens online. Like, "I'm doing all these MySpace ads and Facebook came along and kicked MySpace in the face and now Facebook is the king of the castle and all my ads don't go anywhere." We think about online companies as just disrupting each other. Google's disrupting Ask Jeeves or whatever it's disrupting. We expect kind of the online space to be chaotic and a lot of change, but this actually happens a lot in direct mail markets, or it really just in housing markets in general. I'm going to give you an example. I'm pretty sure of your listeners podcast you have experienced some variation of this, or you've heard someone telling you this story, this should sound pretty familiar. You've got somebody who's an investor in their local market and they're been doing direct mail, they've been doing it for years, they are doing really well and then a coaching program or a guru or a seminar that trains people in investing swings in a town. They do tons of marketing, they get a ton of interest, people flood into that, and all of a sudden this seminar is they are training a bunch of new people to be your competitors. They're going to give them some basic understanding, give them some basic tools or you can get them really pumped up, and then the seminar the guru or the program, they're going to leave, they're going to go to the next market. What happens in your market after that is done, right? A lot of times you're going to have sometimes hundreds of new investors all doing pretty much the exact same marketing. Sometimes using the exact same templated letter or postcard, because in the seminar they're going to say like, "Hey, this is what worked for us." They're going to teach everybody how to do that exact same thing, and the new people don't really have the experience yet to innovate or to invent their own thing, they're just going to do the thing that the people told them to do. So in this case we're going to send out the same yellow letter, they're going to send out the same postcard; most of the time they're hitting the same lists.

All of a sudden that's a much, much noisier channel. You may have gone to like one or two other investor postcards being in a motivated sellers mailbox to literally like five to ten to twenty other of like the exact same thing in every single mailbox you mail to. This is probably... It may sound like I'm kind of exaggerating this, but I would say this is probably the most common story I hear when people get on the phone and they want to talk to me, this is the story I hear all the time. "I was doing direct mail in my market, it was working really well, but I've been seeing response rates drop off, there's way more competition, people are making crazy offers, there's all these newbies in the market." I mean this is the story I hear I would say eight times out of ten, some variation on this. So this is what we talk about when we're talking about disruption, a market disruption can happen in any marketing channel. Doesn't matter if that marketing channel has worked for decades, disruption can happen and it can be very intense. If you are completely invested in a single marketing channel and you don't have this Parthenon set up where you have multiple channels to support you, it can be really intense, it can be really disruptive, it can be painful.

Now, again, I am not knocking direct mail because I think pretty much every single investor should be at the very least testing direct mail in their market, or have direct mail be a part of their set up, but it shouldn't be the only tool in your bag. Just like if you were only doing online marketing, I would tell you, "Hey, add in some direct mail." If you're only doing direct mail I'm going to tell you to add in some online marketing, or billboards, or build yourself a house costume and walk around down the street write, whatever. Maybe don't do that. You ever wore one of those like sandwich boards. You know they always say like people wearing it like in the depression that say "hamburgers 2¢" or whatever, something like that. So it's not about any one tool, it's about having multiple tools in the tool bag in order to give you the highest level of security, in case of a market disruption.

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Dan: The thing I want to get across, as well that's important, is actually not the only reason to have a Parthenon type strategy where you have multiple marketing channels. The stability is huge, that's what I focused on because I really think this is insurance against some really potentially painful disruptions in your market. This is the thing we always try to cap our downside, we always try to look out for the worst possible scenario and make sure that we are protected. You do this with your life insurance, with your health insurance, you do this with your business insurance. Stability is not the only thing we unlock when we use multiple marketing strategies. What we get is synergy, and the way I'm using the word "synergy" here is I'm using it to mean when you get a bigger effect from combining two separate channels then you would have gotten from running those things simultaneously, but separately. These marketing channels when you use them together a lot of times they don't add up to 1+1=2, they add up to 1+1=3 or 4 because you're able to allow them to use them to expand and multiply each other. And this can sound very abstract. it's kind of a little philosophical almost, so I want to break this down into very specific instances of how you can do this now and how this is working like with our clients when we work with investors or other investors and I'm talking to every week, people who are using this really successfully. Specifically I'm going to focus on combining direct mail and online sources, but you could get something like this with pretty much any marketing channels that you combine right. Let's focus in on direct mail and online.

Let's say we've got someone who is doing a combination of direct mail, they're doing organic marketing online, so they're doing search engine optimization, they're trying to rank their website really well on Google, that kind of thing, and they're also doing paid ads. In this case they're doing retargeting ads, which is a fancy way of saying they're showing ads to people who have been on their website. Okay? This is actually a real world example something we've seen with a real client. So let's say this client sends out direct mail, they're hitting their regular list of potential motivated sellers, sending out postcards. Now, one of those people is going to get that postcard and think like, "I really don't know what this is, I don't know what's going on." So they Google the company name and scam. This is actually much more common than you might think it would be. So let's say Barrett Homebuyers is the name of the investor company. So this person's going online, they're typing in "Barrett Homebuyers scam". Why are they doing that? Because they want to know if you're a scam. I mean I think, you know, if you're an investor you've done this any amount of time. People who aren't familiar with investing and where investing fits into the kind of the marketplace, they get confused they want to know if it's legit. So they type in "Barrett Homebuyers scam". Now that person sees an organic search results, so this is a webpage that this client made that showed up in Google for free targeting this keyword, so "Barrett Homebuyers scam.” In this instance it would be like I made this page as Barrett Homebuyers scam page, and they click on that page and see what it's all about, and on that page I've created an article that breaks down like, "Hey, some investors are scams and some aren't, here's what you need to look for in an ethical investor. By the way if you want to talk to someone to break this down, you can go ahead and contact Barrett Homebuyers." Not pretending to be someone else and not pretending that I'm not this company, just breaking it down into really objective way. So this person, they got the postcard in the mail, they typed in "Barrett Homebuyer scam", they landed on our page that targeted that key word, they read it and spent some time there, but they didn't fill out the form, they just left. Now I have it set up so that I can show ads to anyone that's been on any page of my site, so when that person then goes on Facebook later in that day, you know they're sharing memes and clicking on baby photos or whatever it is, they actually see an ad from Barrett Homebuyers with a little video and an invitation to fill out a form and get a free offer on their house. So then they go ahead and fill that out, I get the lead notification and then contact them on the phone.

So in this instance what would have happened if I was only using direct mail is I send out the direct mail, they type in "Barrett Homebuyer scam", maybe they find something, maybe they don't, maybe they live in the Better Business Bureau, that's it. That's really it. The likelihood to be pulling in that person is fairly low. In this instance because I'm using multiple channels where they get the postcard, they type in "Barrett Homebuyer scam", they land on my organic marketing page, then they bounce off that, then they land on my paid ad, and then they fill up the form, it's allowing me to get a much higher yield out of the direct mail money I'm already spending, and for a very low marginal cost. So the effect of the online stuff is that it's expanding the effectiveness of the direct mail stuff that I'm doing, this is really, really powerful. If you extend that out over time and say like, "Hey, every postcard I'm sending out gets this benefit.", we're doing this every time I send out any piece of mail for years and years and years, the utility of that is absolutely huge an effect on your bottom line is going to be absolutely huge.

Let me give it another example of combining online marketing channels specifically. So let's say you are running Adwords ads, you're running ads in Google when someone types and "sell my house fast", they see your ad. Now one of the secondary effects of that is that you can get inside your Adwords account very accurate local key word data. This is very hard to find. There are free keyword tools out there where you can do research on who is searching for what in your local market, but they are very inaccurate when you try to drill down to the local level. I mean really just kind of unusable in my opinion. The only way you can really get hard numbers is by running ads. So when you run ads you get this really accurate keyword data. Now you can look at those keywords and say like, "Alright, based on this I'm going to change my organic strategy, my search engine optimization strategy, because based on this paid data that generated I can see that most people are searching for really only two or three keywords. I'm going to change my strategy to focus entirely on creating content around those two or three keywords." So now let's say you're working on that, couple months go by, you're doing all the work for your SEO, you're still running your ads. Now when someone types in, let's just say "sell my house fast", I'm going to assume that's the keyword we're talking about. Someone types in "sell my house fast", they still see your ad, your ad is still running, but now you also have an organic page, a free page that ranks for that keyword as well. So you're running an ad and you have an organic page.

Now what most people don't realize is that when that happens your organic page, so the page you're not paying for actually gets 15% higher number of clicks. So when you run your ads and your organic page together you actually end up getting a higher percentage of clicks on the organic page and on the ad. So this is a really good example of the synergistic effect. You use the data from your ads to drive a more focused SEO strategy, which made your SEO more effective. Then because you did those two things together, you got a higher percentage of clicks on your ads, and on your organics. So this is really powerful. Once you start to do this you start to see these little opportunities for connection pretty much everywhere that you look where you understand by doing this together and making sure that I'm swapping data back and forth and best practices and all that stuff, I'm starting to get a bigger effect, a ripple effect across all of my marketing channels.

Now, how do you get started with this? My personal recommendation is to do a combination of direct mail, search engine optimization and pay per click. These to me are the ones that, you know, they combine with each other in such a way that they address each other's weaknesses and amplify their strengths. Direct mail and PPC give you immediate lead flow that brings in some leads, brings in some cash flow, that's extremely important. Direct mail and PPC give you extremely high levels of target ability offline and online respectively. SEO really gives you a massive potential volume over time. SEO tends to be slow to get started, but over time it's going to have the biggest potential audience and the highest ROI, so while direct mail and PPC are kind of fast and short term, SEO is building out your long term profitability, and they all give you objective data for testing. They give you enough data so you can test different landing pages, different postcards, different websites, different calls to action, different phone numbers, whatever it is, different logos. So these are really good channels to put together, because they really magnify each other. You don't have to do all three, you could do two of the three. I personally like doing all three at once because it's really powerful, but if you have a smaller budget, you do direct mail and SEO. If you've got a bigger budget, maybe you do direct mail and PPC. You can do some combination of those, get all the effects of having a Parthenon that you can keep building on, and to get the synergistic effect that we're going to drive higher response rates across all of your marketing.

Again, this one of those habits where once you get into it, the cumulative effects over time are absolutely massive. They are massive. This is the difference between really scaling up over time and an investor business that just kind of stays at a certain level, static level and kind of stays there for a long period of time. I'm telling you, it's not just about growth, it's not just about making more money, I mean that's awesome, it's really about stability and security, because the more you depend on only one channel, the more you put your eggs in only one basket, the more risk you take on. For a lot of us, myself included, this business is not just about me, it's what I use to feed my family, it's what I use to support my employees, and if you're anything like me you take that responsibility incredibly seriously. Right? So this is the kind of thing that really has incredible downstream effects.

I hope that makes sense, I hope this was useful for you guys. Like I said, you can go on AdWordsNerds.com/podcast, go ahead and grab the show notes, and as always, I want you guys to join me in our Facebook group, the REI Marketing Nerds Facebook group, it's totally free, it'll be free forever. You can get there by going to AdWordsNerds.com/group or just go on Facebook and type in REI Marketing Nerds. I'm in there every single week doing live trainings, do all sorts of free giveaways and cool stuff, plus other investors just sharing strategies, tips, tricks and all sorts of cool stuff like that. I will talk to you guys in the next episode, have an awesome rest of your day, and definitely go check out that Jay Abraham book if you haven't read, it is a doozy. Alright guys and gals, talk to you very soon. Bye.

Episode #002 – Online Marketing Mindset: What you need to succeed in online marketing

If you’re a real estate investor and you want to get started in online marketing, you know there’s a lot to learn: Targeting, retargeting, custom audiences, ad sets, split tests and more.

It can be overwhelming, but you need to fix something else first.

If you really want to get leads and close deals through online marketing, you need to get into the right mindset.

In this episode, you learn how to set your mindset up for profitable online marketing.

Show highlights include:

– Which common mindset leads to failure with near-absolute certainty—avoid it at all costs. ([3:00])
– What you can learn from bodybuilding and stock markets about successful online marketing. ([7:55])
– What to do when your site metrics improve… but your revenue doesn’t. ([10:45])
– The one belief you can’t become successful without. ([20:00])
– How to know whether online marketing is worth it for you. ([26:30])
– The important difference between simple and easy. ([31:30])

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group
Need help with your online marketing? Jump on a FREE strategy session with our team. We’ll dive deep into your market and help you build a custom strategy for finding motivated seller leads online. Schedule for free here: https://adwordsnerds.com/strategy

Read Full Transcript

You're listening to the REI marketing nerds podcast, the leading resource for real estate investors who want to dominate their market online. Dan Barrett is the founder of Adwords Nerds, a high tech digital agency focusing exclusively on helping real estate investors like you get more leads in deals online. Outsmart your competition and live a freer, more awesome life. And now, your host, Dan Barrett. 

Dan: Alright, hello everybody, it's Daniel Barrett here from AdWordsNerds.com, and welcome back to the REI Marketing Nerds Podcast. I hope all you wonderful people are having an awesome day today. I'm sipping some lovely black tea, which is very, very nice. Not coffee, that will come a little bit later today. For right now I'm enjoying that, and this episode is going to be really, really important one. It's one that's very, very close to my heart because this is going to address a really common issue that I see with real estate investors that are getting started with online marketing, and it's something that over and over I see really sabotage people. I mean, really prevent them from having success online, doing more deals online. It's a big deal. This is the issue of mindset. This online marketing mindset. That can sound a little abstract. Really want to mean by this is just how you think about the online marketing you're doing to find motivated sellers and how you think about how that process should go. This may not seem like a big deal, it is absolutely huge deal. The way I want to start is I want to think about how most investors are going to think about online marketing and where they go wrong, and then I'm going to dive into how to think about online marketing in such a way that's actually going to build in a permanent advantage for you, and is going to make everything that you do online from that point forward much, much easier.

So let's think about where we go wrong in the first place. There's a couple really common conceptions that investors have about online marketing, whether we're talking about organic, like SEO, ranking your website in Google, whether we're talking about pay per click, are you doing Google Ads or Facebook Ads, whatever it is. There's a couple major mindset errors that people make that really sabotage them long term. One is that they think of online marketing as a store. You think about, I want Gatorade. This show brought to you by Gatorade. No. That would be dope, I would definitely take a Gatorade sponsorship. Let's say I really want Gatorade, I definitely want it to be neon blue, so what am I going to do? I'm going to go to a grocery store. I'm going to go grocery store I'm going to walk in, I'm going to find the place where they have the neon blue Gatorade that I want, and I'm going to see a price. That price to give me whatever it is, $2. I'm going to take that Gatorade to the register, I'm going to pay the $2 that was on the sign and I'm going to get exactly what I wanted. I knew the price, I knew what I wanted, I got the Gatorade, everybody's happy. People kind of assume that that's how online marketing is going to work as well. I want motivated seller leads, I'm going to go to the place online that has a motivated seller leads, they're going to cost a certain price, I'm going to pay that price and I'm going to get a motivated seller. When in actuality it's much more complex that, it doesn't really work that way at all, it's much closer to something like stock investing than it is like going to a store, but we'll get into how it differs in a little bit. For now I just want you to think about people who think about this process as, they're just going to go in, pay the price and get the thing. Totally understandable because that's how most of the economy works, but not actually how the online marketing is going to work.

The next mindset that I want to think about is the checklist mindset, and this is really common, totally understandable because when you start to learn about online marketing as an investor there are a lot of guides, there are courses, there are checklists, there are best practices, and so people think of online marketing as something that has a checklist, something that's going to be kind of connect the dots. There are known ways to succeed, "To get motivated sellers I got to do step A, step B, step C. So if I do step A, step B, step C, I'm going to get the result that I expect. I did A, I did B, I did C, give me my motivated seller leads. I'm going to get the same result every time if I follow that process." There are things that are like that. Computer programming is like that. It's a lot more complex than this, but in general you go to the gym, you lift the weights, you get bigger, you get stronger, that's how it works. Online marketing is much more adaptive and evolutionary than that, so it's not always a case of following the checklist to get the same result every time. We will talk about how it differs again, but just think about we've got these two mindsets now. We've got the store mindset, we've got the checklist mindset. Okay?

And the third mindset the really sabotages people is the speed mindset. These are people who are basically thinking of online marketing like, "Look, I need results. I'm going to go in, I'm going to do it. Of I don't get the results I'm going to back out." Right? So they think it's going to be a pretty fast process, and if they don't see results right away, well they just say it doesn't work and they leave. This is, I would say, where this falls apart, is this lack of understanding of how complex systems and competitive systems work specifically, but if you went to the gym and you lifted weights once or you lifted weights even for a month, you wouldn't leave thinking like, "Well, I didn't become Arnold Schwarzenegger so I'm not going to lift weights anymore." We have an understanding with weight lifting that is going to be a gradual process. When we get online because everything is so fast, text messaging is fast, emailing is fast, be fast to set up, fast to get going, fast to spend money, we expect the whole process to be fast and it just doesn't end up working that way. So for all these people, whether you got this store mindset or you're going to walk in, pay the price and get what you want, whether you got the checklist minds that we're like, "Look, I should be able to do A, B, C and get the motivated seller leads that I need.", whether you think it's going to be you know you have this fast mindset we're going to walk in and get the deals and if you don't get deals right away you walk out, these mindsets are poison and they are costing you hundreds of thousands of dollars. and that is not an exaggeration. I will get into valuing some of this stuff a little bit later in this episode, but keep this in mind, and I am being literal here. These mind sets cost you hundreds of thousands of dollars over the lifetime of your investing business. So figuring out your mindset, how to think about online marketing, how to think about how you're going to go through it, these are vitally important.

So how should we think about these things? What mindset should we have? So I'm going to give you a couple different ones, but I want to frame this whole conversation by saying that online marketing is much closer to dealing with a biological system than it is to dealing with computers, the way that typically is. It's much closer to body building or the stock market than it is to say I push one on my computer and I got a one back. Things are weird and they change and they evolve, it's kind of like dealing with some weird kind of alien organism where you got to figure it out, you don't know exactly what's going on and it's always different, it's changing and then it turns blue and then it eats your partner and then you're trapped in space and you've got trick it to go into the life thing and then you push the button and you shoot it off into space. The metaphor started to get off went off the rails but you get what I'm saying, it's a complicated.

Alright, so let's get into some of the more powerful, positive mindsets we can have. The first mindset I want you to take away from this is the give and take mindset. The give and take mindset. What I mean by this is that your online marketing process is a process of giving and taking information into and from the system. You can think of this as a relationship. You put information into the system, the system gives you information back, it creates a feedback loop that becomes the core of everything that you're doing. You do something, the system responds, you respond to the response. It's this constant ebb and flow, this give and take, and this process continues forever. You are never really done even. If you set up an online marketing campaign you crush and you do tons of deals and you make tons of money, until you retire it is not over, because what worked yesterday doesn't necessarily work tomorrow. What works today isn't necessarily going to work a week from now. You might have crushed it on My Space with your My Space marketing stuff, but hey if you're around today, you're not marketing on My Space. I don't know, by the time you listen to this maybe My Space made a huge comeback and My Space is the most popular social media platform. Who knows, but I'm guessing you're not doing a whole lot of My Space marketing. The rate of evolution online is so fast but you have to be open to continual adaptation and evolution. The only constant here is change. There is no set path, there is no checklist, there is no thing that works all the time. Instead what there is, is you being open to giving information into the system and taking information out. I'm going to give you a specific example, because that can sound kind of general, but I want to bring this down to the nitty gritty, something you can really use.

So let's take for example this scenario of you're an investor, you've been putting a lot of time in your website, you're blogging and you're making links and you put pictures up, you have video testimonials, everything's awesome, firing on all cylinders, and your website is ranking, you notice in your little dashboard on your website, website rank is going up. Your Google ranks are going up, you're getting higher and higher in the Google rankings, that's awesome, but you notice you're not getting much more traffic, you're not really getting a lot of clicks, there are more people coming your website, you're not getting more leads. Why not? "The rank is going up, why aren't I getting more leads?" It's actually really common issue. That's the information you're getting out of the system, "The rank is going up and I'm not getting more clicks, I'm taking information here. What do I do with that information? Well I'm going to think through this. People are seeing my website more often, it's showing up in Google, but they're not clicking. Why not?" Well there's a couple different reasons that might be. Maybe my site title is inaccurate or not interesting enough. I name you know my real estate investing site Dan Buys Cell Phones, that might be a catchy name but if people are looking to sell their house, they're not going to click on that name. Maybe my name is like ABC Real Estate Solutions or something, and it's just too general, it's not interesting enough. Do I have a description of my website that people can see in Google that entices them to click? Am I giving them enough to make them think that I can solve their problem? If my description of my website when they they see it in Google it just as "A real estate website", this will do nothing to get them interested enough to click on the website. Maybe if I said something like, "Hey, 100% local, I'm here to help you sell your house when no one else wants to buy it." Wow, okay, that's much more compelling. You think people are going to be more likely to click on that than they are and clicking on "This is a default WordPress website" or "My real estate website"? Yeah, absolutely. Maybe my rankings are going up but they're going up for keywords I don't actually want. Maybe I'm actually ranking really well for the word "realtor", but because I'm not a realtor, people aren't actually clicking. Maybe I'm ranking for all sorts of random stuff. Like I mentioned the video game Grand Theft Auto once on a website, and then my website is ranking really well for "sell my house in Grand Theft Auto", which by the way is a real keyword that shows up all the time. You get that little tidbit for free, go check your account see if you're showing up for Grand Theft Auto stuff, super annoying, see that all time. But hey, if I'm ranking for this it's going to show my rankings going up, but I'm not actually ranked for the stuff I want so my clicks aren't going up. So what do I do? Well okay, I can change my site title, I can change my website description, I can see which keywords I'm ranking for and change my strategy. This is the giving information into the system. I took the information and my rankings are going up, I'm not getting the clicks, I gave it back more information in terms of what I did to change things, and I'm going to wait, I'm going to get more information back. This is an evolutionary process of you engaging with the data that's coming out and then seeing what happens and then engaging again. This is the core of all effective online marketing. I'm telling you, there is no definitive thing that works everywhere. Okay? There is no checklist.

So let's talk about that, because again the question is well why isn't there a checklist. If you're a real estate investor, motivated seller leads, chances are your business, no matter how awesome you are, it's not universes away from the investor down the street. You guys are probably do in similar types of deals, similar types of deal structures, you've got similar types of marketing. So why does everything change so much? This all has to do with context. This by the way is the second mindset I want you to take away. The context mindset, being aware of context. Context changes everything. Different markets have different costs, and different seller behaviors have different search patterns, have different marketing channels that will work best and on and on and on. Not to mention that your market is even, even though your market is different from the market down the street and the market two states over, your market changes from month to month, from week to week, from day to day, from hour to hour. Your markets very different depending on when I decide to look at it. There's a call a classic saying, you can never step into the same stream twice, because it's always moving, it's always changing. Like your market might do a certain thing in March, and it's going to do a very different thing on December 25th. Your market is going to be very different, if I'm looking at motivated sellers and how they behave at 2 PM or 2 AM. We all agree, if you think about your own behavior, you're very different person at 2 PM than you are at 2 AM. I know I am. So markets vary wildly between each other, and then even within the market, they vary wildly from context to context, depending on when you look at it and what aspect of that market you're looking at. Something may crush in one market and fail miserably in another. You might do something that crushes in your market in January and then fails in February. So there is no one roadmap that is going to show you exactly what to do in every single situation, because the context is always different. There are best practices, there are things that give you the highest percentage chance of success, there are ways to structure your PPC accounts, there are ways to set up your website, there are ways to build links, there are ways to build content, there are ways to make ads. These are best practices that data has shown us over time, give us a good chance of success, but they don't guarantee success. You always need to learn to apply those best practices to your individual market, your individual context, your individual goals and your ability to close and your ability to talk to people. Maybe you're virtual, maybe you're local, maybe you don't go out to see people's homes, maybe you do. All these things make a huge difference. So we want to get away from the store mindset and into that mindset of the give and take. We want to move away from the checklist mindset and get into a mindset of the context is what matters and I have to figure out the context and adapt to it.

Are you an investor who wants to dominate your local market? Do you want more leave than deals online? Then download your copy of the Motivated Seller Blueprint absolutely free at www.AdWordsNerd.com/get. What are you waiting for? Go to www.AdWordsNerd.com/get right now to get your copy of the Motivated Seller Blueprint.

Dan: The next mindset we really want to get into is the mindset of experimentation and getting better every day. This really addresses the person who's thinking of this as a fast process, and I'm going to liken this to Brazilian Jiu-Jitsu. Last year I started taking Brazilian Jiu-Jitsu lessons, and I love it now. It's so fun. If you know familiar, it's a kind of wrestling essentially, you're wrestling you're on the ground, you're trying to go for chokes and arm locks and all this really cool stuff, super fun, it's  an amazing workout, I highly recommend. But when I got there and I started, I was terrible. Just terrible, just the worst. I mean, worse than most people at start. Not a natural wrestler, not a natural athlete, not naturally competitive. None of this is lining up for me. If I had just gone for the first week and thought, "Well look, I haven't been able to use anything I'm learning in this class, Jiu-Jitsu doesn't work, I'm not going to go anymore." then I would quit and that would have been the end of it. But I kept going and I kept going and I kept learning and I got a little bit better and a little bit better and I would experiment with this technique over here and experiment with this technique over there, learn from this person, learn from that person, and now almost a year and a half later, I am slightly less terrible than I was when I started. But I had the experimentation mindset. I had this mindset of "I am getting better every day. I'm going into class to try stuff, to see what works, to learn from experience and get better every day because what's at the end of this process is worth it." This is the only way to find what works for you, this is exactly the same in online marketing. You are not going to start where you're going to finish. You're going to start way worse, and you've got to experiment yourself to success. Now we test everything in our online marketing. I'm testing stuff basically all day every day, whether it's our ads that we're running, the keywords that we're running, our bid strategies, the positions that we run our ads on, the landing pages that we, the forms that we're using, even down to the color of the buttons that we're having people click. We test every single element of that because, hey, I'm actually wrong a lot of the time. My intuition about what should work is very often wrong and it's going to be exactly the same for you. So we have to experiment to figure out where success is hiding, is just part of the process. Something I talk about a lot is I come from a web design background, I did web design before I got an online marketing, and it pains me to say this, but ugly websites for real estate investors often outperform pretty websites by a lot. In fact after I've done this for so long and been through this process a lot of time, one of my rules of thumb is the better looking the website is the worse it's going to do. That's not always true, but it's true a lot of the time. So how can you figure out if that's true for you? You've got to experiment, you've got to try it out.

Now I think most people get that. I think most people get that kind of basic concept of you gotta try things, you got to test. One of the traps that we all fall into is that we view an experiment that doesn't achieve our goal as being a failure. Let's say I'm testing two different websites, a pretty website an ugly website, and I think the ugly website's going to win, and neither of them do particularly better than the other, I'm like, "That's a failure." But you have to reframe that, because failure in experimentation is necessary. Failure is the only way you learn and grow. Someone told me this, I can't remember who gave me this quote, but I thought this was amazing, it said, "Success is a terrible teacher." I actually think this was from the REI Marketing Nerds Facebook group. "Success is a terrible teacher", that is so true. If you just do what you think is going to work and it works, you don't learn anything new. You do not grow, you do not advance. Success is awesome, but you are not growing. It's failure that teaches you. It's failure that causes you to grow. There is a famous Thomas Edison quote, and this is one of those quotes where, I don't know, maybe he never said it. Maybe he never said this at all, but I love this quote, and this quote is from Thomas Edison, he's talking about trying to invent the filament that's inside the light bulb. Thomas Edison didn't invent the light bulb, what he did was he made it economically viable by creating this filament that would make this a much more economical process to make these, manufactured these light bulbs. He worked on this for a long time. The quote is "I've not failed 700 times. I haven't failed once. I have succeeded in proving that those 700 ways of making this light bulb will not work. When I have a limited the ways that will not work, I will find the way that will work." And this is really how I want you to think about this process. You run an ad that you're really sure about, you think is going to be awesome and it bombs, it is not a failure. What it is is an education that is going to show you the way to what will work. Not meeting with success shows us the way forth, that's the way it's always been. It's incredibly important if you're getting into this online marking space, because most real estate investors get discouraged early, and they give up. They give up, which is really terrible, because they are not understanding the value of what they're going after, and how difficult it should be to get that valuable thing.

So just to review real quick, I've got one more piece of this that we're going to get into, but I want to come back to this issue of mindsets. We set up these three months in the beginning. One is the store mindset. I'm going to walk in the store, pay a price and get the thing I expect. The mindset I want to take away about online marketing instead is this idea of give and take. This continuous evolutionary process of learning and growing and then having to work your way around problems. The second mindset is the mindset of the checklist. There should be a list of things I have to do, if I do those things I get the leads that I want. When in reality there is no checklist, and the mindset you should have is the mindset of context awareness. Understanding the context changes everything, every market changes, every market's different, things are constantly moving and so we have to adapt to that context and evolve along with it. And then finally the mindset of this should be fast. I'm going to get in there, see if it works and then get out if it doesn't. And remember that instead what we have to have is an experimentation process. This experimentation mindset, this understanding that failure pushes us forward, and that the thing we're working for is valuable enough to justify the effort. Alright? Now if I'm going to say that, if I'm saying the value at the end is worth it, how do we value this whole process? Because I know what I'm telling you right here is basically this is going to be difficult. So how do we know it's worth it? How do I know if I'm going to Jiu-Jitsu class every week and get my butt kicked, which by the way I am. Hopefully I'm still doing this podcast in like ten years and I can look back of this episode and be like, "Now I'm a black belt and I'm amazing." But I'll tell you right now, it's tough right.

So how do I know the end of that process is going to be worth it? Let's talk about valuing our online marketing. What is all my marketing worth? What is all this effort and experimentation and mindset stuff, what is it worth to me as an investor? I'm going to walk you through a basic thought process, these are based on real national numbers, pulled these out of some of our client accounts today basically.. Let's say you're targeting a single keyword in your market that generates about 1000 searches a month, so we're doing something like "sell my house", "sell my house fast", whatever it is. Okay. We're generating about 1000, this keyword generates 1000 searches a month. Now if we rank our website, top spot in Google for that keyword, we're ranked really, well we did a bunch of work, we did a bunch of SEO work, worked on the blog, whatever we did, we got the top spot for that key word. That's probably going to generate around seven and a half leads a month. That's not that much, right? Seven and a half leads. Now over time we're generally going to need about 20 of these leads to close a deal. That's based on our clients. Your close rate might be a little better, might be a little worse, but it's generally around their. So you're generally going to need 20 of these leads to generate a deal, so that means we've got this key we're generating seven and a half leads a month, that means this key word is going to generate for us, this one key word, about one deal every two point six months, that's about...I have this as being four and a half deals a year. Okay. Close to five deals a year. Let's assume that that's true. We're generating about four and a half deals a year. Again, we're not setting the world on fire, but this is one keyword in a broad channel. Now if our average deal value, meaning what we take home from one of these deals is about $10,000, that means in that one key word is worth on average about $45,000 to your business over the next year. Four and a half deals times $10,000, $45,000 in profit from a single keyword. Over the next five years that one keyword is going to be worth $225,000. One keyword, 1000 searches a month, seven and a half leads for one deal every 2.6 months, about four and a half deals a year. $45,000 a year from a single keyword. By the way I'm not skewing these numbers, these are real world numbers. Let me give you kind of a hypothetical example. If I took out a TV commercial in your market and I just got on there, just like some James Bond villain kind of stuff, but let's say I'm doing this. I get on the TV commercial and I announce to everyone in your market that I have hidden $45,000 somewhere on main street in your town and that the first person who finds that money gets to keep it. So it's the same amount of money, $45,000, same amount of money we generated over a year from this key word. I just hid this somewhere in your town. Could be anywhere, it's on main street though, first person to find it gets to keep it, and there are no rules. Okay? Now what do you expect would happen? How much competition is there going to be? How hard do you think people are going to fight to find that money? Do you think somebody might get in a fist fight? Do you think somebody's going to have a sword? I think the likelihood of someone having a sword is probably fairly high. We're in a pretty competitive situation, I think we all expect that, I think we all expect some kind of like purge or Battle Royale time situation where there's a lot of competition for this $45,000, so why do we expect there to be so much competition for the $45,000, but we expect there not to be that much competition for the online keywords that we're targeting that are going to generate that same amount of money every single year? If there's something that generates that much money do you expect it to be difficult to attain? I know I do. It's difficult to pick stocks they give you a return of even a couple percent. Now am I saying this is impossible? No, of course not. We generate deals every single day for our clients, real estate investors all over the world, all over the country are doing this every single day, so it's not impossible. In fact it's relatively simple, but it isn't easy, and it's not going to be fast. This is just the reality, because if you think about what the value is, one key we're generating $225,000 over a five year period. Well you can have hundreds of those if you really work at it. So this is something that is intensely valuable, would change the entire structure of your business. And of course it's going to be hard, just like it's hard to get my black belt in Jiu-Jitsu, just like it's hard to get a body look like Arnold Schwarzenegger. Just like it would be hard to take your homemade flame thrower go up here and find that $45,000 that I shoved in the mailbox at 123 Main Street in Middletown, Connecticut. Please don't do that, that was a joke, but you get what I'm saying.

So even though it's technical, even though it's complicated, even though there's all this computer stuff, in the end your success here is really going to be about your mindset and what you expect, because if you get in there and you expect to fight and you expect to do the work and you expect to grind and you expect to give it the time and the effort an the investment than in needs, you're going to do that because you know the value at the end of that process is worth it. If you get into it thinking it's going to be easy and it's going to be fast, you're going to get frustrated really quickly and you're going to back out of that competition, and I'm telling you, this is why people leave so much money on the table. They get frustrated and they give up. So I want to be able to take what we talked about in this podcast, apply this to how you think about your online marketing, and I want you to go out there and make a ton of money, because it is out there, you just need to be able to have the right mindset in order to pursue it.

Thanks guys, hope you got a lot of value out of this episode. Couple things, first of all, show notes for this episode, I'm about resources and all this cool stuff, you can get that AdWordsNerds.com/podcast, that's AdWordsNerds.com/podcast, it'll have certain link and stuff for this episode.

The other thing, check us out, we got a free Facebook group, it's called The REI Marketing Nerds Facebook group, you go on Facebook, type in REI Marketing Nerds, you'll find it, totally free to join, or you can go to AdWordsNerds.com/group, that's AdWordsNerds.com/group, that will take you straight to the Facebook group, and I would love to see you there, I'm in there every week doing free trainings, we do live hangouts, we do questions and answers, lot of really awesome investors and they're sharing information, sharing success stories, sharing their strategies, sharing their data. It's really a really awesome community. So come and join us and I'll see you in the next episode, be sure to give me a like or subscribe if you dig this podcast, and I will talk to you very soon.

Alright guys, cheers, bye.

Episode #001 – The Moat: How to build a lasting competitive advantage in your market

As a real estate investor, you know the market is crowded. It can even feel like your area is saturated.

In this Episode, you learn how to protect yourself from the woes of the market by building competitive advantage.

Show highlights include:

– Why you may already one of the best real estate investors—and how to improve from there ([4:00])
– How to make more profits without charging more and disgruntling leads ([11:10])
– How to make ad networks give you cheaper lead costs ([13:30])
– Which metric to improve to give your entire business a boost ([15:45])
– Which advertiser gets the bulk of the market in every market ([17:45])

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group

Read Full Transcript

“The Moat: How to Build a Lasting Competitive Advantage in Your Market”

You're listening to the REI Marketing Nerds podcast, the leading resource for real estate investors who want to dominate their market online. Dan Barrett is the founder of AdWords Nerds, a high-tech digital agency focusing exclusively on helping real estate investors like you get more leads and deals online, outsmart your competition, and live a freer, more awesome life. And now, your host, Dan Barrett.

Dan: Hey, everybody! What is up? Daniel Barrett here from adwordsnerds.com, and this is officially the very first episode of the REI Marketing Nerds podcast. Thank you so much for being here, man – or lady, I should say! [laughter] Cause I don't know who you are! But listen, I'm really excited about this podcast and really excited about what we're going to do here.

I want to take a quick second to introduce what this podcast is going to be about. I wanted to make this a little bit different from the classic real estate investing podcast. There are a ton of awesome podcasters in this industry right now. People do really, really amazing work, and I wanted to do something a little bit different. I wanted to make a podcast that was going to be a little more focused. It's going to be really focused on just value ad content. We are going to get into the weeds on how to market for motivated sellers, primarily using online marketing, and I really wanted to dive deep because there is a ton of misinformation out there. There is a ton of stuff that's like, somebody told you 10 years ago that this made sense, and it's something that works, but no one is really discussing what is working on the cutting edge, what's working in the trenches right now. So rather than do kind of the classic interview format where I bring on guests and we talk and we'll probably do that in the future. What I wanted to do is put out some really high quality content and really try to move the needle on raising the literacy of real estate investors in this vitally, vitally important field.

My goal is you're going to listen to this podcast, you're going to leave this podcast with insights that are going to directly help you grow your business and get more motivated seller leads; work less, which is another big part of this for me; work less, make more; and basically just be a happier, healthier, more wonderful person.

So that's the goal for the podcast. I really hope that you are going to enjoy this with me. We're going to do a whole bunch of episodes of this, and yeah, let's get straight into it. We're going to start with a concept that is absolutely vitally important to understand. If you are doing any kind of online marketing at all or really if you're in any kind of business at all, I'm going to apply this to online marketing, but this is a universal business concept that is revolutionary when you understand it, and it is the concept of “the moat”.

Okay, “the moat”. This is about building a lasting, competitive advantage in your market that is going to help you survive the next 5 to 10 years of your business life because we've all heard the statistics. The vast majority of business don't last year 1, much less year two, much less year five, much less year 10, right? Most businesses do not make it. They get out there, people put in the work, they put in the capital, they read the books, they watch the videos, they take the courses, and it just doesn't happen for them, and if you're a real estate investor, and you are getting started, you haven't done a deal yet, you've got to know that.

You've got to know that the mass majority of investors that get started in this business never do a deal, and they never really get started, and if you've done deals before, you're in the tippy-top percentages of this industry, right? And that's heartbreaking to me. It really is. If you're like any of the other investors that we work with or that I talk to every day, you are a passionate person, you want to help people, you want to grow wealth for your family and for yourself, you want to have more free time to do things you love – be with your family, be with your loved ones. These are really important things in peoples' lives, so why don't people succeed? Why don't they make it? It's not lack of motivation, and it's not lack of knowledge, because knowledge is everywhere. The problem is a lack of competitive advantage.

So let's get into that. What is a competitive advantage? Well competitive advantage is anything that gives you a lasting advantage in the marketplace. It basically makes you harder to compete with, give your competitors a harder time catching up to you. One of the key things to keep in mind about this is that it has to be hard for others to reproduce. This is something that is really, really important to understand for online marketing.

You can't have a competitive advantage that other people can easily reproduce or bring into their own business. Let's say, you're doing Facebook Ads, for example, and you start to mess around with a new ad type. They’ve got a new lead generation ad where people can just click a button, and it sends you their email, right? That's super cool. That's a really, really cool thing to use, and you're like, hey, I'm getting leads cheaper, everything's going well, I'm awesome.

But the problem is, anybody can do that that has a Facebook account. The second you start doing that, other investors are going to notice, because it's a small world out there, for sure [laughter], if you're a real estate investor, you probably know this! It's a small world, right? Everybody knows everybody, everybody is all up in everybody's business, so if you're getting leads real cheap with this new ad type, Bob or Jane down the street is going to see that, and if they have easy access to this ad on Facebook, which they do, they're going to start doing it, too, and all of a sudden, you're back at the same point. You're right back where you were where everyone is in exactly the same position, and that's not an advantage. It doesn't last, right? So we need a competitive advantage that is hard to beat.

I like Charlie Munger, who is Warren Buffett's partner over at Berkshire Hathaway. It's probably one of the most… I think he is one of the most successful stock investors of all time. Charlie Munger calls this “the moat”. He calls these competitive advantages moats because it's supposed to be hard to get across, right? I think he has talked about this, but I always picture like… You don't just dig a trench around your castle. You fill it with water, right? [laughter] Because it makes it more of a pain to get across, and then ideally, you put crocodiles in the water, and then you put lasers on top of the crocodiles, and then when the crocodiles open their mouths, bats fly out. [laughter] So you want to make it as tough as possible for other people to get across and beat your competitive advantage. That's what we need a real competitive advantage.

Now, in real estate investing, it's easier to feel like this is hard to do. If you think about Coke or whatever, Coke's got the brand name. Or you think about Apple. Apple had got all these amazing Apple stores that are everywhere. That's a huge competitive advantage, right? But in investing, it's kind of like… It's hard to figure out what your advantage is going to be. Everyone is kind of doing the same deals a lot of the time. We've all had this experience where you kind of get to a lead's house to talk about putting their house under contract, and there's like 5 other people in line after you, right? Or this person gets your postcard, you send them a yellow letter, a postcard, or whatever, and they've got a stack of 40 other postcards. It's easy to feel like everybody is doing the exact same thing and nobody has a competitive advantage.

In my opinion, the easiest way in investing – there are other ways for sure – but I think the easiest way to build a competitive advantage in investing is in the marketing space. If you can make your marketing consistently 10% more effective than your competitors, that is a huge competitive advantage that will allow you to completely dominate a market over time, and I'm going to get into exactly why that is and how that works, but that's what I want to focus on now. How can we make your marketing 10% better? Where your leads come in 10% cheaper, your deals come in 10% cheaper; you're getting 10% more leads. How can we do that over time and make that a lasting competitive advantage?

Let's talk about how we actually do that.
Are you an investor who wants to dominate your local market? Do you want more leads and deals on line? Then download your copy of the Motivated Seller Blueprint absolutely free at www.adwordsnerds.com/gift. What are you waiting for? Go to www.adwordsnerds.com/gift right now to get your copy of the Motivated Seller Blueprint.

Dan: Now, this can seem very overwhelming, especially if we're talking about online marketing because frankly, most people, even if you're computer savvy and you're tech savvy, most people don't really know where to start with online marketing. If you've ever logged into Google AdWords, it looks like… Have you ever played Microsoft Flight Simulator? [laughter] Remember, if you ever played this video game, it's like you get in and there are dials and buttons on the dashboard and there's the stick… It's like there's a million things going on, and it's kind of overwhelming because you're like, where do I even look, right? Which dial tells me if the plane is crashing or not? And it's kind of the same way on online marketing. There's a ton of stuff going on, a lot of numbers flying at you. It can get overwhelming, but we can start in a very focused way and grow momentum over time, and really this is the key. It's key to focus your attention, your effort, your investment, etc., and then grow your momentum off the back of that improvement in this one focused area.

Let's focus on building a cost-per-lead advantage; specifically I'm talking about getting your leads cheaper than the average competitor gets them, right? If you're in a competitive market, and people are using online marketing to get leads and they're buying leads like they're doing… Like they’re doing a lead buying program like zBuyer or something like that, or they're doing online advertising, and they're spending money to get clicks. There's kind of a market rate from your local market that people are paying. In really expensive markets, that rate is higher; in more rural markets with less traffic, less competition, that rate is lower, but there is a market rate that if you just kind of log on and do what everybody does, you're going to get that market rate for your leads, and everybody is kind of paying the same, but you can actually improve that for your own business by lowering your cost per lead over time, and you can do this by improving any one of the key metrics in your online marketing.

I'm going to do a deep dive on key metrics in a different podcast because it's a really, to my mind, an interesting discussion and something we can really talk a lot about, but key metrics are these particular numbers inside your advertising account, inside your online marketing stuff that are going to really affect the overall performance. I'm going to give you examples here. One is click through rate.
So click through rate. A lot of times it is abbreviated to CTR. And basically what click through rate is, is the percentage of people that click on your ad after they see it. If 100 people see your ad, and 10 of them click it, you have a 10% click through rate. Now what affects click through rate? Click through rate is primarily driven by how attractive your ad is. If your ad is really well written, and it's snazzy and it talks exactly to what I need, and hey, I read this ad, and I just feel like you understood me, man! [laughter] I feel like you just got me in a way that even the people closest to me don't understand me. If you can get people to have that reaction, [laughter], which again is probably a little hard, but if you can get people to have that reaction, a higher percentage of these people are going to click the App. That's just natural. And if you're ad is terrible, it's got a million typos in it, and you're like, yeah, whatever, I can buy your house, or nah, whatever, I don't care. No one is going to click that ad, and so you're click through rate is lower. The better your ad, essentially the higher click through rate, and the higher click through rate, what does that mean? You're getting more clicks.

Now the cool thing about that is that pretty much every advertising platform, whether it's Facebook or Averts or Bing, they are going to reward you for having an ad that more people click on by giving you lower prices, and this is because if you think about how these companies work – Google, Facebook – they get paid when you click on the ad. If no one clicks on your ad, they don't get paid. It's in their best interest for you to write a really awesome ad that everybody clicks, and so when you have a really awesome ad that everybody clicks, they charge you less as a way of rewarding you, of incentivizing that behavior. The higher your click rate goes, the better your ad, the more people click on it, the higher your click rate goes, the lower your costs go, and you start to get leads at better prices. That's just one key metric: click through rate.

Another key metric that you can focus on improving is your conversion rate. Conversion rate is the percentage of people that contact you, whether that's they call you or they email you; the percentage of people that contact you after they land on your website. If you think about typical situation, right? I type in sell my house in the Google. I click an ad, click your ad, I land on your website, and I'm like, hey, this is a pretty awesome website. This guy's got a lot of cool pictures of himself and his family. He seems like he really knows what he is talking about when it comes to buying homes. He is local to me, handsome, rugged, square-jawed, [laughter], you know? Like, of course… [laughter] Just a really, really awesome person. I'm going to contact this person, and they fill out your form, and they become a lead.

Now if that same person clicked on your ad, and your landing page has no information on it, and you say, hey, I'm trying to buy houses, I've never bought one before, I don't really know how it works, chances are this is illegal, I've got a warrant out for my arrest, you know whatever? [laughter] If you'd say all that stuff, that person is probably not going to fill out your form and contact you. They'll leave, right? So the higher your conversion rate goes, the higher the percentage of people that contact you after landing on your page. The more leads you're going to generate per dollar that you spent because you spent the money to get the click on your site, and now the more people that you convert into leads, you're not paying any more for that. You're just getting more and more leads for the same amount of spend. As your conversion rate goes up, your cost per lead goes down.

We just talked about click through rate, the higher your click through rate, the lower the prices you're going to have to pay for every click that you generate. The higher your conversion rate goes, the lower your cost per lead goes. When you start to improve these, that's just two of many, many metrics that you can focus on improving, but let's say you just focused on these. When you start to do these together, you get synergistic improvements that are really, really awesome, and I'm going to get to that in a little bit, but the thing I want you to remember about this, the thing I want you to take away from this, is that it is simple to do this. It doesn't mean it's easy. It's not easy because, again, we don't want everyone to do this. It's going to take work. It's going to take effort. It's going to take some technical know-how, but it is simple. You're just trying to improve one metric at a time. Moving your key metrics past the market average, improving them even by 10% will set off a chain reaction that's going to give you a massive competitive advantage over time.

Let's talk about that. Let's talk about this massive competitive advantage over time, what I mean by that, why this is important. The thing to keep in mind is that when you start to make these changes, you start to see some of this improvement, you gain momentum, and your future changes become easier. Now why is this? I can't remember who told me, but this kind of general principle stuck in my head for a really long time, and it's really important to understand if you want to understand how the online marketplace kind of works in reality? The saying is, the bulk of any market will go to the advertiser who can afford to pay the most for leads. I'm going to say this again. It's this important. The bulk of any market will go to the advertiser who can afford to pay the most for leads. If you are able to raise the amount you are paying for leads aggressively, let's say you make more on the backend of your business than everyone else of you're able to capitalize on more of the clicks because your stats are better – whatever it is. You're able to pay more upfront. You will be able to box out your opponent, even when those opponents are much larger than you. If you can, let's say, improve your click through rates and get more clicks, you can use that to raise your bids because remember what we said: When you raise your click through rates, your cost goes down. So now you're paying less. You're like cool, I'm paying less for the same amount of clicks as everyone else, I'm going to raise my bids. Now I'm paying more than everyone else, and I'm getting even more clicks than I was getting before. So you are raising your prices. Raising your prices, improving your performance that lowers your cost, that allows you to raise your prices again.

Now that gives you a lot more data. All of a sudden you're getting a lot more people clicking through on your website, and now you can use that data to improve your website. More people clicking on the website, more people looking at the form, more people reading your copy. Well that allows you to test some things and raise your conversion rate. Remember your conversion rate, the percentage of people that contact you. So you improve it a little bit, improve it a little bit, improve it a little bit. Now, your cost per lead is going down. It's going down again, it's going down again. Now you are getting more leads than everyone else, but you're actually paying less. What do you do then? You raise your bids. Now you have even more clicks because you're raising your bids and your click through rate is higher, and even more leads because you're raising your conversion rates and your raising your bids again, and this creates a virtuous cycle as one metric starts to generate more data at a lower cost. You can use that data to improve your other metrics and lower your costs again. It is a virtuous cycle. The more momentum you gain through these focused changes, the easier it is to create more focus changes down the line, and the further the distance becomes between you and your nearest competitor. If you do this over time, you're improvements compound on one another. This adds a massive competitive advantage over time. That is very, very hard to overturn, and whether I'm coaching an investor or we're working with an investor for done-for-you-service, this is the goal.

My goal is yes, I want to generate leads, and yes, I want to get deals for my clients, but my real goal, the thing I am actually focused on doing, is creating a long-term competitive advantage of compounding focused changes that allow me to pay more for leads than any of my other competitors, and if I can do that, over time, I am going to eat the market.

This is just straight economics. It's not something I made up. It's not something I invented. It's not something that I'm theorizing about. This is what happens in every single real estate investor marketplace on Earth. The question is can you adapt that process to help you overcome? And you absolutely can.
So, again, just to kind of back up a little bit, we know we need competitive advantages in order to last the next 5 or 10 years in our business, right? So how do we get a competitive advantage? The easiest place is in our marketing, and how do we do that? We focus on a couple key metrics. We improve those metrics over time, which creates a virtuous cycle, allowing us to make more focused changes. Those focused changes compounding on one another over a long period of time are going to add up a massive, massive competitive advantage allowing you to bring in leads and deals at a discount. This is absolutely huge, and this is really the philosophy I want you to take into all of your marketing going forward. No marketing activity that you do exists just by itself in a vacuum. It's part of this process of developing your competitive advantage in your marketplace.

All right, I hope that makes sense, guys! Listen, the show notes for this show are going to be at www.adwordsnerds.com/podcast. We'll have notes, links, all cool stuff you can go and check out. If you like this podcast and you want to get more live trainings from me, you want to get online and share tips and strategies and data with a bunch of other really cool investors who are out there in the trenches doing this stuff right now, you should come and join the Facebook group that we started, the REI Marketing Nerds Facebook group. It is awesome. It is growing super fast. It is a really high-quality, no spam place to hang out, and you can find that at adwordsnerds.com/group. That’s adwordsnerds.com/group.

Alright, guys, see you in the next episode. Hope all is well, and I will talk to you soon. Cheers!