There’s one thing that every new investor wants to know, and that’s how to find the best new deals. It’s no surprise, really. If you want to survive in this business, you need to be able to find more properties to buy than your rivals. Not every property will be suitable for investment so it is important to make sure you have as many to choose from as possible. Determining which is the best lead generation strategy, however, isn’t easy. There are several to pick from and what works for one person may not work for another. With that in mind, today’s post isn’t going to come to a definitive answer. Instead, we’re going to weigh the pros and cons of each strategy and let you decide what works for you. Ready? Then let’s begin.
It’s an oldie but a goody. Direct mail has been around for ages, which probably gives you some clue as to its effectiveness. Hint: people wouldn’t keep investing in it if it didn’t work. We’ve all seen direct mail ads from property investors before, so rather than describe what they are, let’s look at why they work.
Direct mail is cheap. And we mean CHEAP. It doesn’t cost much at all to find a list of people, design a flyer, get it printed in bulk and send them out. It is also quick. You could probably do the whole lot within a day. Finally, direct mail gives investors the opportunity to speak to potential targets directly. You’d be surprised at how personable you can be in a direct mail ad and you may find that you can get to the heart of your reader’s problem.
It will come as no surprise that conversion rates on direct mail ads are low. And we mean really low. If you do a bad job, you might not get a single response at all. There’s also a lot of competition. Practically every investor has tried this tactic at some point. That means it can be very difficult to stand out in a crowded marketplace. You also need to spend a lot of time developing a highly targeted list. Failing to do so can see your conversion rates plummet. This can mean that campaigns quickly become very expensive.
Everyone and their uncle are on social media today. That means there are plenty of potential leads for you to reach. Because of how modern it is, however, social media marketing comes with its own set of unique challenges.
The reach you can get from a single social media ad or post is astonishing. You can literally reach millions of people from a single ad. There’s also the option to hyper-target your ads so that only a very specific type of person sees them. It’s also very cost-effective. No other platform can let you reach thousands of people for a few bucks. Finally, the multimedia nature of adverts means that you can use video and text to create a captivating message.
While a lot of people are on social media, not everyone is. That means solely relying on social media could mean you miss out on potential targets. Social media is a rapidly evolving beast, too. As companies look to make more money, the way that they promote posts is changing. Facebook, for instance, is becoming increasingly pay-to-play. If you aren’t willing to pay for ads, you won’t get exposure.
Your Website and SEO
If you have a website it can be a huge lead magnet. Even more so if you use Search Engine Optimization (SEO) to rank highly in Google and Bing. Virtual every big brand has an SEO team helping them rank higher so you can be sure that there is value there. But, like everything, there is a cost. Click here to read about our consultant.
Ranking for free in Google can be hugely profitable for your investment company. You can have hundreds or thousands of people visiting your website every day with the specific intent of trying to find someone to buy their house quickly. It will also be very easy for you to track who comes to your site and what they do on it. This makes is easy to improve your online marketing and attract even more people.
While ranking in Google is free, it can cost money to get there. In all likelihood you will have to hire an SEO consultant to help you rank and this can cost upwards of $1000. Even if you do hire someone, there’s no guarantee that you will rank highly. And if you do, it can take a while. Often, it takes up to six months to get on the first page of Google.
Knocking on doors
Let’s end with another classic marketing strategy. Good ol’ cold calling. And, no, we don’t mean phone calls. We mean actually knocking on people’s doors to ask them if they are interested in selling their property. You may think this is too old fashioned to work, but it isn’t. Just be prepared to have doors slammed in your face.
Knocking on doors is possibly the most effective marketing strategy to find motivated sellers. Think about it, you are thinking of selling your home and someone knocks on the door wanting to buy it, you’re going to have a chat with them. From your perspective, door knocking gives you the opportunity to actually meet the seller and look around their property before anyone else. If it looks to good to pass up, you can make an offer they can’t refuse. But the very best thing about it is that it is free. The only thing that this method costs is your time.
It may be free, but it can be incredibly time consuming. I wouldn’t blame you if you thought your time was better spent elsewhere. You’re also going to have to speak to a lot of strangers and face a lot of rejection. This is some people’s worst nightmare. You’re going to have to develop thick skin if you want to be successful with this method.
Now you know the pros and cons of each strategy, which is the best for you? Don’t forget to reach out and let us know how you get on.
Also, don't forget to connect with your local REIA! If you aren't in South Florida, and can't connect with us, do a local search to find the one nearest you.
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