90-Day Formula: Close Your Next Deal
Follow this simple checklist and close your next deal in 90 days
What's included:
- How to Get Leads & Manage Data
- How to Automate your Marketing
- Streamline Your Sales & Operations
Want to grow your real estate investing business?
The key to growing your profits lies in your numbers. Specifically, in understanding which marketing channels perform well for you — and which are just wasting your precious budget.
Keep your finger on the pulse of these key performance indicators (KPIs) every week, or at the very least every month.
Every business wants to earn more revenue while spending less on expenses. To achieve that, you need to know exactly how many dollars of revenue come back to you for every dollar you spend on marketing.
Specifically, you need to track this return on investment (ROI) for each one of your marketing channels.
If you earn $15 for every $1 spent on direct mail campaigns from probate leads, but only $3 for every $1 spent reaching out to driving for dollars leads, you which channel to double down on — and which to scale back on or cut out entirely.
Tracking the ROI of each marketing channel lets you push and pull back on the right levers in your business. The mystery disappears, because you know exactly how much you can expect to earn for every dollar spent in each marketing channel.
That sounds great in theory, but which real estate KPIs should you track, and how do you do so?
At a minimum, track the following metrics in your real estate investing business.
Calculating the effectiveness of any given marketing campaign starts with knowing how much you spend on it.
Use the REsimpli CRM platform to track spending on each marketing channel in your business. You can manually enter or edit spending on each channel of course. But the platform can also connect and sync with your bank accounts through Plaid, to auto-import and track all expenses.
That makes it easy to scroll through and simply tag any unmarked or inaccurate expense labels. For that matter, it automates the rest of your accounting too.
You know how much you spent on each campaign. But how many leads did each one produce?
The REsimpli CRM also helps you automatically track and source leads. The system uses tagging in emailed links, unique URLs in ringless voicemails, unique tracking phone numbers for each campaign when directing leads to call in by phone.
The bottom line: REsimpli knows which leads came from which campaigns. Which means you know how much you’ve spent for each lead in each campaign.
Even more important than your cost per lead is the cost of each deal you’ve actually closed as a real estate wholesaler or flipper.
The REsimpli platform tracks all your leads for you, and lets you mark them as closed. Once again, you know which ones fizzled and which ones boomed.
Coming full circle, the system lets you tag the lead for each revenue deposit. You now know exactly how much you spent and how much earned on each marketing campaign.
If you spent $1,000 on a direct mail campaign for probate leads, which brought in 50 leads and you closed two of them for $15,000 in total revenue, you earned $15 for every $1 spent on that marketing campaign. You spent $20 per lead and $500 per closed deal. You earned an average of $7,500 per deal.
And now you know you can grow your business by spending more on that marketing strategy.
Imagine spending $1,000 per month on that direct mail campaign outlined above, and $1,000 per month on pay-per-click advertising (PPC). But on the PPC campaigns, you only earned $1.20 for each dollar spent.
If you let six months go by without bothering to look at the numbers, you’d keep spending money on PPC ads even though they may not be profitable after you cover overhead costs. But if you checked these numbers every week or two, you’d know after the first month that one marketing campaign far outperformed the other.
Six months later, you’d have far more profit to show for the same marketing budget if you reallocated all of it to the better performing channel. Without knowing your ROI numbers, you’d still be blowing money on PPC ads and wondering why you aren’t closing more deals.
Smart marketers know not just which marketing channels work best, but the exact ROI for each. As a result, they maintain full control over how quickly they want to grow their business.
Want to double your business this year? Great — double down on your best marketing channel. As you grow, you can add staff and other support resources as needed. You control the speed of growth, and as you experiment with new marketing strategies or new markets, you’ll know within a few weeks exactly which ones work and which just waste money.