Lead Optimization Plan

Thursday, May 19, 2016 By Faisal Velani

You’ve finally found it…

This space is designed for those who are new to AREIS as well as those AREIS veterans that just want a refresher course in the principle of REAL ESTATE LEAD MACHINE!

Think of this as a map for your real estate business.

What you have to realize is that it doesn’t matter if you are a wholesaler or an investor, you are STUCK at some point in your business. There’s just so much to learn.

Doesn’t matter if you are a beginner or well established investor – we are all looking to get better at what we do- looking for a slight edge over the competition.

This page is here to help you MASTER your business by utilizing the REAL ESTATE LEAD MACHINE!

The Traditional Way

Before we dive straight in, we first need to understand the dynamics of traditional real estate marketing and how investors are failing miserably and not even realizing it. Every investor has the same formula:

1. Choose your target audience (Landlords, Probates, Foreclosures, Divorcee…)

2. Purchase a list (or spend days gathering one from the county court)

3. Choose a method of marketing (Postcards, Yellow Letters, Bandit Signs, or Adwords)

4. Get some calls (Qualified and Not Qualified)

5. Out of the ones that are qualified, purchase a house

The flow chart above is a great visualization of what a real estate Funnel looks like. The key word here is “Funnel“. Whether you realize it or not, every marketing campaign in any business follows a Funnel method. A Marketing Funnel is where a company markets a product (usually free) to a large audience. From there, they acquire leads at the top (some qualified and some not qualified). Then they take the leads and convert them to sales (in this instance a sale would be you putting a property under contract).

A Real Estate Example:

1. An investor decides to market to landlords in Orlando, Fl.

2. He purchases a list of landlords from a list source company ($99)

3. He decides to use yellow post cards as his source for marketing

4. He sends a 1000 postcards using a service like Click2Mail ($500)

5. His response rate is around 2%-5% (25-50)

6. Out of those who called only 10% are qualified sellers, the rest usually just want to know how much you would pay for their house (2-5)

7. From that list, maybe one person decides to sell their home to you.

This is a typical example of a real estate funnel. Any investor out there can relate to spending around $600 or more to get maybe one qualified lead. Even then, you are competing with hundreds of other investors with the same postcards and the same list.

The inherent flaw in this method is that you get ONE SHOT to hit the BULLSEYE! What do I mean by that? You are hoping to get in front of a seller just when they have

1. Exhausted all their resources

2. Thought about all their options

3. Decided to sell

If your postcard appears in front of them within this time frame, you get the call! That’s like shooting a Bow and Arrow 100 feet away trying to hit a bullseye while also competing with other archers (investors).

This is why conversions on all these methods are horrible.

You are counting on LUCK to run a successful business. That’s a guaranteed recipe for failure!

While I am not knocking this method – especially since I started off the same way – there is a better way to market for leads. What if you could bring a Machine Gun while everyone is still shooting Arrows? Let me show you how!

Take a minute here and think of when you were a kid and the companies that were popular back then…

I’ll give you a minute….

Great, now think of how many of those companies are still around.

Again, take your time….

If you are being honest, not many. My list included RadioShack, Kmart, Sears, Circuit City, even online companies like MoviePhone (remember them?), Friendster, MySpace and so many more. These companies were on top of the world – so what happened?

They didn’t evolve with time.

While others like McDonalds, Walmart, Skittles, Target (they came back from the dead) and so many others changed their marketing methods. Times are always evolving and so are your clients. If you don’t keep up with the inevitable change, your company will be left to die.

I know these are harsh words but I am not here to sugar coat it to you.

If you are looking for a “guru” who tells you “you can do real estate deals with no money down” or “get rich by doing nothing” then you came to the wrong place. To make it anywhere in life you have to work at it. Nothing is free but that doesn’t mean it has to be expensive.

My father always told me to work “SMARTER” not “HARDER”.

It was this philosophy that lead me to create the REAL ESTATE LEAD MACHINE that I am about to show you.

And you know what the best part is? This SYSTEM actually increased my conversions on the old ways of marketing as well. I started to see more leads coming in from my postcards and letters than ever before.

Not possible you say? Keep reading below and you will see just how it works….

The System

This is the same system that Amazon has used to dominate the e-commerce space. It’s how companies like Beach Body, Best Buy and Gilt have topped everyone’s wish list. If this system can work for their business then why not real estate?

I call it the Lead Optimization Plan or LOP.

Read this page carefully . Read it as many times as you need to memorize. This should be your Bible from this point onwards.

There is not a single “guru” out there teaching this stuff (you should be wondering why is that?)

Here are the steps,

1. Choose a Lead Type (Landlords, Foreclosure, Probate….)

2. Choose a Traffic Source (Facebook, Twitter, Email Marketing….)

3. Offer a Dedicated Lead Magnet (Free Ebook-“Seven Ways To Avoid Foreclosure”)

4. Dedicated Landing Page To Fill Out Information (We Buy Foreclosure Houses)

5. Create the Return Path (Qualified and Non Qualified)

If this all seems a little overwhelming – don’t worry – I am about to reveal the exact process we used to create a six figure income in our real estate business.

Let’s begin!

Step 1 – Choose A Lead Type

Real estate investing is pretty simple.

We help our clients go from “Unhappy” to being “Happy”.

They are “Unhappy” because they are stuck. They might have a troubled tenant, need major repairs to their house they can’t afford, about to lose their credit and equity due to foreclosure or any number of other reasons.

In the “Happy” state, life is better. They are free of the problem tenant, they sold their house for cash rather then investing their own money for repairs, they saved their credit and avoided foreclosure or any other problems they might have been facing.

Sellers don’t sell their homes…

They are looking for someone to sell their problems to.

A great real estate investor will genuinely move a seller to a desired “Happy” state…

…and great real estate marketing simply articulates the move from an “Unhappy” to a “Happy” state.

Most investors that fail, especially at the beginning, do so because either….

They fail to move sellers to the desired “Happy” state (Their offer is no good) They fail to articulate the move from “Unhappy” to “Happy” (Their marketing effort is no good) Whatever the reason might be – one thing is clear – delivering a clear message on your offer is the key to success in real estate.

So how do you get clarity on what sellers want?

All Sellers Are Not The Same!

One of the biggest mistakes investors make is thinking all sellers are the same. They send the same marketing material to a landlord as they would to a foreclosure seller. Even though you might get a few hits, this method will not sustain a long term business.

In order to target all different types of sellers (and there are many of them, we just focus on a few here), you first have to understand their motivation for selling. Once you have a handle on that, you can write effective and targeted marketing content to that specific seller.

Ask your selves these eight questions (these questions come from Digital Marketer)

– What does your seller HAVE when in the “Unhappy” state?
– What does your seller HAVE in the “Happy” state?

– How does your seller FEEL in the “Unhappy” state?
– How does your seller FEEL in the “Happy” state?

– What is an AVERAGE DAY like for your seller in the “Unhappy” state?
– What is an AVERAGE DAY like for your seller in the “Happy” state?

– What is your seller’s STATUS in the “Unhappy” state?
– What is your seller’s STATUS in the “Happy” state?

For Example – Landlords

Great real estate marketing articulates to each individual client what they will HAVE, how they will FEEL, how their AVERAGE DAY will change and how their STATUS will be upgraded by accepting our services.

Once you understand the concept above, you can be confident in you marketing content…

“Dealing with tenants and doing repairs is not the only way to make money in real estate”

“Say goodbye to your problem tenant and enjoy some free time”

“Move away from being an overworked landlord to a successful entrepreneur.”

These words clearly hit home to a landlord tired of dealing with tenants and toilets. It’s exactly what he/she needs to hear to move from an “Unhappy” stressful state to a “Happy” relaxed state of mind.

When your content starts to laser focus on each of your clients needs, thats when you have laid the foundation for an UNSTOPPABLE REAL ESTATE BUSINESS!

But that’s not all….

Making a seller understand how you will transform them from “Unhappy” to “Happy” will also impact…

How much profit you can make

As an investor, we are inclined to think that the best offer gets the house.

FALSE

Sellers ARE looking for the highest offer – BUT – what they need more than that is for someone who can get them out of their situation right away. Someone they can trust to follow through on their promise and deliver. NOT someone who just throws the highest number their way but has not solidified themselves as an expert in their field.

I have beaten out dozens of investors on properties with offers sometimes $10,000 – $15,000 less than theirs. This was done simply because I did my research on the PROPERTY and the SELLER vs just the property like other investors. I understood their situation and what the HAVE, how they FEEL, how their AVERAGE DAY is and what their STATUS was. My message clearly spoke to them about…

– Not only am I capable of purchasing their house

– I am also the person who is an industry leader in this field and

– Is going to get them out of this mess the fastest while

– Taking care of them in the process.

There is nothing more important then understanding your Seller and how you will transform each of them from an “Unhappy” to a “Happy” state. This is the foundation of your real estate business.

In the next step, I am going to show you how following the Lead Optimization Plan actually BOASTED conversions of my traditional marketing (postcards, yellow letters…)

(By the way, I’m teaching a FREE live training that goes into even more depth about this process called Real Estate Leads Funnel. If this stuff interests you — join me by clicking here.)

Step 2 – Choose A Traffic Source

Earlier I asked you to think of some companies there were popular when you were a kid and how most of them are not around any more. I also gave you names of some companies that not only made it but are thriving in this new environment. The difference between the former and the latter is that they evolved over time.

Lets take a quick look at this.

Below you will see a sample post on Facebook by Skittles (yumm!!!)

Why is this relevant?

Also why would Skittles spend the time, money, and effort to create this (lets face it, someone got paid to make this)?

It doesn’t talk about any promotions or lead to a call to action. There is no coupon here to bribe you to buy a pack. It has no marketing behind it – so what’s the use?

To understand why this is so important, you have to understand the evolution of SOCIAL MEDIA and its impact on subtle marketing.

There was a time when the best form of advertising was to buy an ad on prime time tv in hopes to reaching the mass majority of audience – leading to some of your target demographics seeing your promotion and going out to make a purchase. This was actually smart because it was the BEST way to do things…BACK THEN!

As social media evolved from a hobby to a necessity in our lives, smart companies started to realize that they can reach their target audience at a fraction of the cost while maximizing on their profit.

Lets face it, those TV ads were not cheap and their conversion ratio were nothing to brag about (sound like a certain mailer you’ve been sending?)

They started to create content on social media, blogs, email marketing and other variations that targeted their audience – but it wasn’t blatant advertising. Somewhere someone figured out that if they provided free content (like the one you are reading here) on their industry, along with a mixed variations of humor, insightful posts, and an array of other topics, they can gain a following that now views them as an INDUSTRY LEADER in their field. From there, when they actually chose to advertise a promotion or a product/service, their conversions went through the roof.

So you are thinking, whats the big deal about that?

Think about it for a second, creating an ad on a television network can cost easily from the $100,000 – $1,000,000 or more. Those same companies can come with with images and marketing material for social media for a fraction of the cost. Also, unlike TV, they can market to their specific audience and keep them engaged. Their audience follows them on a daily basis because they know they are getting great (free) content that interest them. So now when they actually do want to market, people are happy to hear their message and follow through with it.

Oh and there is a BONUS – unlike TV where your ad is only seen when it’s played, your audience on social media can repost, retweet, repin and reblog your ad as many times as they like. Actually they are happy to do so leading to FREE LEADS for you business.

This is how companies like Amazon, Beach Body and many others have dominated their industry. They created a following by giving up some of their knowledge as well as letting their audience get an inside look at their company’s personality. Social media has given us a unique opportunity to get to know our audience on a deep and personal level without ever seeing or talking to them.

Who would you rather turn to for help? A complete stranger – OR – someone who has consistently shown you they are a leader by providing you with free knowledge and you already know on a deep and personal level?

Being a Marketing major, I decided to apply these same principals into my real estate business. I started to create articles on “How To Avoid Foreclosure”, “Top Ten Mistakes All landlords Make”, “Whether You Should Repair or Sell Your Home” and many more. Once I obtained a massive following, I started to offer free lead magnets (we will cover them in the next step) that resulted in a tremendous number of leads. To a point where I had to hire people just to take my phone calls.

It was truly amazing!

And best of all, they already saw me as an expert because I had given my knowledge up front. The questions that I used to get about “How long have you been investing?” or “How many houses have you bought” turned into “Can you help me with my situation?”

Not only did I have an abundance of leads, for the first time the majority of my leads were QUALIFIED LEADS. These sellers actually raised their hands and qualified themselves because they read through the articles or posts and said “I am in this situation!”

This also increased the number of leads I started getting from my outbound marketing (postcards, yellow letters….)

There was a time when you were considered a big name business if you had a business card. As time went by, business cards became a necessity. Then you were considered a strong business if you had a website.

In today’s time, if you don’t have a website you are not a legitimate business. Now you are a BRAND or an INDUSTRY LEADER if you have a strong social media presence. Times are evolving and soon every company will have to have a social media account. It’s Darwinism at its best!

Since I created a social media presence for myself before most investors, when I sent my postcards, my sellers did their research and figured out that I was no joke. Again, by the time they called me, they already knew that I was an INDUSTRY LEADER and I can get the job done. So now the question was not “How much would you pay for my house?” – it was “How soon can you help me?”

The success of your business depends on driving traffic into the LOP (Lead Optimization Plan) funnel.

It all starts with the Lead Magnet…

Step 3 – Offer A Dedicated Lead Magnet

A Lead Magnet is a free bribe that gives a specific amount of value to your sellers in exchange for their contact information.

This is the first transaction you will have with a seller (this can work for buyers and private money lenders as well).

Lead Magnets are everywhere. Think back to how many times you got an offer for a free calculator, an ebook, a one page contract or any other item that you got for free by inputing your email address on a website. These are all Lead Magnets and they are extremely effective in generating real estate leads.

You might have found us through a Lead Magnet!

Make no mistake, your Lead Magnet has to be something of value to your particular seller. It doesn’t have to be fancy but it does have to provide some sort of value.

The More Specific You Are – The Higher Your Lead Intake

Let’s take a look at a Lead Magnet…

Here you have a site offering free information on how to avoid foreclosure without trying to advertise that they buy houses. There is no reason for a seller to not enter their information here. It’s a free exchange of information without any strings attached.

Also, now you have a lead that has raised their hands and said they are about to face foreclosure and need help. Plus you have already QUALIFIED your self as an expert by giving away information on how to avoid foreclosure.

Compare this to when you send direct mail. There is no evidence of your authority within your field. Just a card that says “I want to purchase your house”, along with hundreds of other investors with the same card.

The good new is that you DO NOT need to create a lengthy or complex Lead Magnet. The more focused your Lead Magnet – the higher it will convert.

Step 4 – Send To A Dedicated Landing Page

This is the most important step in the entire funnel process. Once you understand this, you will be miles ahead of your competitors.

Remember, your goal is to increase the number of sellers that are willing to sell you their home. So far, you have only generated leads through the Lead Magnet. Now you will convert them into sellers.

This is done through a Dedicated Landing Page.

This is a great example of a Dedicated Landing Page I found for a company in Houston. Here you get a seller who might be facing foreclosure to match up with a company that specializes in helping people get out of foreclosure.

Your Dedicated Landing Page should be laser focused on the prospects needs. I see a ton of investor websites out there where they only have one page that says “We Buy Houses”. This means that every type of prospect that comes to their site (landlords, probate, foreclosure…) all see the exact same page.

Almost all of those investors will tell you they are barely getting any leads from their site. And the ones that are getting leads are spending thousands of dollars on adwords a month.

I would know. I was one of them!

I decided to launch a site where each type of seller would have their own page. I focused on:

Landlords

Foreclosures

Probate

Divorcees

Rehabs

Each page described how I can help a particular seller out of their situation. I knew exactly what to write because I had already broken down each sellers motivation in the section above.

Remember our Landlord example?

Now when a lead came from a Foreclosure Lead Magnet, they went directly to a page where I show them how I can help them get out of Foreclosure.

This one step alone increased my online conversions by 36%!

You remember the analogy I gave you about the Bow and Arrow vs a Machine Gun?

Well, this was the first shot I fired at them.

This is where traditional real estate marketing ends. If they came to your site and did not fill out your form, you will never see them (unless you spend more money and repeat the process).

In my SYSTEM whether they fill out the form or not, I now have their contact information. They voluntarily gave it to me in order to get the FREE Lead Magnet.

(NOTE: Want to Learn How To Create Your Own Real Estate Funnels? You can learn it in this free live webinar)

Step 5 – Create The Return Path

The goal of the Return Path is to have frequent, strategic communication with your sellers, prospects and non qualified leads.

This is where your Machine Gun goes ballistic!

Lets take our Foreclosure example from above…

Our lead came in through the funnel, filled out a Lead Magnet page, came on to our Dedicated Landing Page but decided not to fill out the form.

– Maybe they are still trying to pay their way out of Foreclosure and are doing research just incase

– Maybe they just started their search and are looking at all possible options

– Or maybe they just have not decided to sell yet

As soon as they entered their information on the Lead Magnet Page, I had an email sent to them….

– Introducing myself

– What my company does and how long we have been around

– How I can help them out of their particular situation – which in this instance would be facing foreclosure

– A link back to my page where I show them how again how I can help them out of Foreclosure

– Any testimonials I had from older Foreclosure clients

– And instructions on how to whitelist my email so their Free Lead Magnet does not go in their SPAM folder

SHOT NUMBER TWO

Can you see how powerful this method is?

Not only did I get them on my site, I also got them to open my email and read everything in there because they are waiting for me to send them something FREE. I also got them to do something they would have never done for another Real Estate investor. I got them to mark my emails as IMPORTANT.

When you can get someone to behave or act in a manner they normally would not have, you have established your self as an AUTHORITY figure (INDUSTRY LEADER).

Lets say they decide not to visit my site or give me a call.

My next email goes out to them within 15 minutes. This is the information they requested

SHOT NUMBER THREE

This again reiterates what the first email stated in different words. It gives me another shot with my audience.

Still no luck?

Now they have a file which shows them how to get out of Foreclosure.

I want to take a sidebar here and say that the information I am providing to them is actually true and valuable. I am giving them options on how they really can avoid foreclosure without losing their house. What I am trying to establish is that I really am their friend and am trying to help. Even with all my advice, if they still can’t avoid foreclosure, then their last step would be to get in touch with me.

The file begins again with my introduction and what my company does. Sprinkled through out the file is the message that I can help them out of Foreclosure and all they need to do is visit my page or give me a call.

SHOT NUMBER FOUR

I also have another email go out the very next day confirming that they received the file along with my contact information for any questions or assistance they my need.

SHOT NUMBER FIVE

Even after all of this if they decide it’s not the right time to sell?

Not a problem.

Now I have added them to my mailing list. Once a week I post a blog on my account on different subjects including Foreclosures.

There is an email with a short description of the article along with a link that takes them back to my page. This email goes out every week to them until they decide to unsubscribe.

SHOT NUMBER SIX, SEVEN, EIGHT, NINE, TEN….

From this point onwards, I took luck out of the equation. In business..

Now I didn’t have to worry about getting the seller just at the right time. When the time came for them to sell, I was the first person on their list. Why?

Because I planted enough seeds in their head to get them to recognize me as an INDUSTRY LEADER on the SUBJECT MATTER. This is exactly how I beat out most of my competitors even when I was offering less then other investors. I followed the path laid out by companies like McDonalds and Amazon.

Nothing is stronger then word of mouth advertising. This is why we need a Return Path even in real estate leads. I followed the same process with the leads that I was able to convert to contracts. By now I have

Created an online presence for myself

Established that I am an industry leader

Given away a chunk of knowledge on an issue

And helped a seller out of a situation while making them money

I now have a walking talking endorsement of what my company can do. A Return Path keeps a reminder for these sellers that I am here if they know of anyone who might be in the same situation.

A Return Path also lets prospects know that I am still here whenever they are ready to sell. It’s a constant reminder of me and my company without spending any money on advertising

The Return Path is anything that brings the customer or prospect back more frequently including…

– Organic Social Media (like Twitter, Facebook and LinkedIn)

– Content Marketing

– Outbound Calling

… but none is more powerful than automated email follow-up.

Summary

By now you must be thinking “This is crazy, I can’t do this” or “This must cost a fortune”. These are the same doubts that have stopped investors from following this method.

In actuality, this method is MUCH MUCH CHEAPER then traditional marketing.

I was spending in excess of $1,000 – $2,000 a month on postcards and online campaigns before I started this.

Creating the REAL ESTATE LEAD MACHINE was a fraction of the cost of what I was spending on a monthly basis. Oh and by the way, it was a ONE TIME COST!

What I saved in monetary terms, I had to invest back in the form of time. I needed to find Lead Magnets for

  1. Landlords
  2. Foreclosure
  3. Divorcees
  4. Probates
  5. Rehabs

The data for all this is all over the internet and guess what? IT’S ALL FREE. I was not creating anything NEW, I was just ORGANIZING whats out there.

Remember work “SMARTER” not “HARDER”.

The single most impactful decision you can make is to setup your REAL ESTATE LEAD MACHINE…

I have had a great time sharing all my secrets with you. I hope you have enjoyed learning this stuff as much as I have enjoyed teaching it.

If you want to learn more about how to create this machine, I hold a live webinar that goes over all the necessary steps.

… you can access the FREE Real Estate Leads Funnel training by clicking here.

This training will be taught by my team and it’s designed to help you take your Real Estate Business to the next level.

We will show you exactly

– How to start

– What the core concepts are

– What programs we used to create the SYSTEM

– A STEP by STEP creation of all the LEAD MAGNETS

– How to DRIVE TRAFFIC in your funnels

– How to AUTORESPONDERS EMAILS you need to have

I WILL ALSO GIVE AWAY

– My very own Lead Magnets

– My BEST CONVERTING funnel design

– And MUCH MUCH MORE….

Space is limited and I don’t want you to miss out.

CLICK ON THE LINK BELOW TO TO REGISTER NOW!

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