It’s easy – just remember The Parthenon and the Diving Board.
I break down the whole concept in this video. Check it out!
(By the way, if you want some help implementing this strategy, just reach out and let us know.)
All right, let’s get the blood flow. What’s up everybody? This is Dan Barrett from AdWordsNerds.com I’m coming to you live because I want to talk about a topic that is really important to me and I won that I think is going to both help you really scale and grow your real estate investing business and save you potentially from a lot of pain and heartache. And that is the Parthenon model. This is not my idea. I stole this completely from Jay Abraham, one of my favorite business authors of all time. If you don’t know him, I highly suggest you go and look it up.
But this is something that I see pretty much every day play out in the real world with the real estate investors that are my clients. Most of you guys know I do all my marketing for real estate investors, so like Seo, Facebook, ad words, et Cetera.
So I see this every day, literally every day and I see it both massively help. A big number of my clients and I see it hold a lot of people back. So let’s dig into this and understand what I’m talking about. What is the Parthenon model? All right, well, to understand the Parthenon we have to take a step back and think about what most business owners are doing for their marketing and most business owners, Jay Abraham calls these the diving board model and what is a diving board? Well, it’s like one thing that’s over here that’s like the base of the diving board and then you’ve got the whole long diving board that kind of like flops up and down on top of this and Jay Abraham would say picture this as your marketing. You’ve got one big channel for an investor that’s typically direct mail, right?
Maybe you’re doing cold calling or whatever your thing is you’re doing door knocking, a bandit signs, driving for dollars, whatever.
You got one channel, this is your channel and it produces money for you, right?
roduces motivated seller leads. That’s awesome. We get deals from it. It’s cool. There’s nothing wrong with this, right? But the problem is that when, this is all you have, you get this up and down motion, right? It goes up and down like a diving board, right? Well what is the up and down mean in our businesses with the up and down is is you are either flush or you are dry. You’ve got a bunch of leads in the pipeline that you are closing and turning into deals or you’re like, where did all my deals go? Right? This is the classic boom and bust cycle of most young businesses. You get busy, get leads coming in. So you’re like, cool, I have to focus on following up with those leads. I have to get those deals under contract.
If you’re doing the flipping, you know you’re dealing with contractors and the Rehab or whatever and you forget to keep the pipeline full. So when you run out of that pipeline, you’ve got no more leads coming up and then all of a sudden it is dead and now you’ve got to race and scramble to get your marketing back up and it takes time and then you know you don’t have cashflow coming in and we go through boom and bust cycles. That’s the diving board. Okay. Now rather than the diving board. What we can do is build our Parthenon. What is the Parthenon?
Well, Parthenon, that famous building in Greece, right? You can probably picture it. It’s got the awesome columns. It’s very stately and white. Although it used to have a ton of paint on it and be very colorful, but now it’s white. We think that’s what all classical buildings used to look like, but you know…
It’s white and it’s got the columns and it’s very stable.
Well, why is it very stable? Well, it’s got the roof and it’s got the foundation. Then it’s got one, two, three, four, five, however many colors right? Now, if this is your business, this metaphor, right? Each of these columns is an additional marketing channel, so you could still have direct mail. It could still have bandit signs, but we also want to have called colleague. We also want to have search engine optimization. We also want to have AdWords, we also want to have Facebook advertising and it doesn’t have to be everyone of those channels for everybody, but we want to have a number of channels that we can pull on so that if our direct mail slows down, because we have a bunch of newbies flooding into our market, our online marketing pin can pick up the slack.
If somebody comes into our pay per click market, our advertising market and bids everything up and things get slow online, we can use our direct mail to pick up the slack, right? We one is slow one’s working better, or even if everything gets slow, well, at least we have five things working together rather than just one thing.
So that’s the Parthenon model. So extremely powerful. The problem is that most investors are highly invested in a single marketing channel, and there’s a good reason for that, right? A lot of people are very familiar with direct mail, bandit signs or whatever they’re doing. They’re comfortable with it. They know how it works, you know, maybe that gets them the best ROI from their money. Awesome. Right? To do it. There’s nothing wrong with doing that stuff. The problem comes one, if anything ever happens to that marketing channel, those numbers change.
You’re kind of stuck there. And then two, even if you are getting a slightly lower ROI on a different channel, let’s say SEO is your best channel and direct mail is more expensive for you, even if you’re getting a worse ROI with that direct mail channel. Well it’s still adding deals on a profit to your business, bringing in additional cashflow and that those numbers could swap or change at any time for a variety of reasons. There’s also what we call a force multiplier effect. And this is the idea that when you have multiple marketing channels working together, the end result is actually two or three times that then you would get from any of those alone. And the reason this works is, you picture like your typical motivated seller. If I get a postcard, I’m like, cool, I got a postcard. You know, like most people, I opened my mail over the garbage as the famous copywriting saying is, I like this toss in the garbage.
Cool. And you’ve got to hit that person like seven or eight or 10 times with that same postcard for it to really sink in, right? This is just kind of a classic marketing truism about direct mail. You’ve got to see him. You got to get them to read that post seven or eight times. Well, instead of doing now what if, uh, you know they read that postcard two times and they went online and they did a search and they saw your website and then they went on Facebook and then they saw an ad and then they went on youtube and they saw a video.
Well, all of a sudden you’re in multiple channels, you’re on multiple modalities, you’re in multiple, multiple content types. You are everywhere. You are omnipresent, right? The effect of that is much, much stronger than if they just see that postcard seven or eight times because now they’re reading it, they’re hearing it, they’re seeing it, they’re seeing it multiple different times, multiple different situations, different contexts. Sometimes you’re tired, sometimes you’re away, sometimes in the morning, sometimes in the evening you’re all over the place and you are always top of mind and when you are top of mind, meaning you are at the sort of peak of their awareness, they know about you, they know what they, what you do, they know the benefits of working with you. Then when they decide like now is the time, now is the time that some of my house, I am motivated. Now you’re there, you’re there.
Right? They don’t have to think about it. They don’t have to worry about it. They don’t have to use any kind of cognitive power to pull up your name. You are there in front of them. That’s the force multiplier effect, right? When you add one plus one plus one plus one plus one it’s not five in this instance it’s 10 or 20 or 50!okay,
so when you combine the Parthenon, this idea of having multiple channels with this idea of force multipliers, you get a massive improvement in the amount of deals you can pull in every month over time and it doesn’t happen automatically. I’m not saying it’s easy.
It isn’t. Right. If it was easy, everyone would do it. You know that, and I’m not saying it’s automatic, but what I am saying is that if you are looking to scale and you’re looking to get to one to two, to three to 10 deals a month, especially from online channels, you have to do it this way. Because if you’re just trying to do everything with that one channel, that one thing you got… Your diving board. Yeah, you’ll get deals, but will be a whole lot of and down. It’ll be really, really painful and chances are you’re going to belly flop into the pool of poverty instead of climbing the ladder of success, let’s say. I hope that makes sense. Let me know what you think. I appreciate you as always. Thank you guys to talk to you soon. Daniel Barrett, from AdWords Nerds.
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