How I Got 10 Contracts With Just $7K On Facebook Ads!

So this month we got 10 contracts by using Facebook ads and only spending less than $7,000. Someone asked me how we're doing it, uh, so I'm going to break that down today. And if you stick till the end of the video, I'll give you some action items that you can take so you can have some success. So if you're not following me on Instagram, please follow me. I post a lot of good content on there. It's just @fidel_ and my last name. But with that being said, I'm going to tell you exactly how we are doing it because Most people are happy getting a 3 to 4x return on their ad spend. For me, I think that's way too low. We work way too hard not to make the money that we want to make. So I'm going to break it down exactly what we are doing differently. Now, as you can see, this is the last 30 days of our Facebook Ads Manager. The only thing that we do for marketing is Facebook Ads. We cut out all the other channels because we get a great ROI on it. So as you can see, we got 211 leads for the month of October at an average cost per lead of $33. Now these campaigns are in my market and some specific markets that, you know, are very good and stuff is selling because I want to be in a market where things are moving so that the properties are not just sitting there. So if you have used an agency before and you have not been getting results like this, it's because their ads suck or they're too generic. Now, if you ask me, how are we getting results like this? One, it's all about your ads. So your ads need to call a specific pain point and you need to sound authentic, right? So whenever you're talking on the ad, whether it's you or an actor, you want it to be authentic. And then there's some stuff that we do behind the scenes that we only share to our clients. That basically allowed you to get cheap leads that are high quality, right? So we spent around $7,000 the last 30 days, 211 leads. And this is all the deals that we got to, for a projected revenue of $180,000. So we only spent 7 grand. We're probably gonna make anywhere from 120 to like 150. Not everything's going to close, obviously. And then some of these, you see it's mail and PPC. Well, we do a retargeting campaign of the leads that we have in the system, and then we retarget them with Facebook ads so that we give them another chance to come through the funnel and basically revive them, right? So we always do an awareness campaign talking about our business, and then sometimes people will submit their information. But if you want to say that it's because of Facebook, you know, great. If not, No worries, but I'm gonna tell you the math on how this looks like, right? So we got 211 leads, we set 79 appointments— not that good, I'm gonna tell you what the goal is. We sent out 48 offers, we got 10 contracts, and then we got a total of $180,000 in projected revenue. Now the goal, by looking at this, I'm gonna have a sales, the sales meeting with the team, and I want to be at least 50% appointments set from the gross leads to the actual appointments that we set out, right? So if we get 200 leads, I want half of that to be an appointment. And then we want to give out an offer to at least 80% of the people that we set an appointment with, right? And then if we have a 25% closing ratio, that means that 1 out of 4 offers that we send out, we're basically going to be getting under contract. Now, if you look at your numbers and you want to basically track this, you want your new leads to net leads to be around 64%, 65%. So what is a net lead? So basically a lead comes in and a net lead is someone that said, yes, I do want to sell. The way that we are doing it is as long as they are urgent and they are motivated, we're setting an appointment with them, right? So right now we're just really focusing on people that are distressed, and then we have stuff on the follow-up, right? So, uh, to give you the magic ratio, new lead to net lead, you want to be around 65%. So meaning a little bit more than half of the leads that you get, you want to be setting an appointment, uh, with them, right? So once you get those net leads, you want to basically set an appointment with at least 70% of the people that said yes, right? So you want to have successfully talking to them. And then you basically, after that, you want to give out an offer to at least 80% of the people that you had an appointment with. Now, the reason why the number is off is because oftentimes whenever the sales team is talking to the person and we dig deep into the motivation or future steps, we figure out that there's stuff that they need to figure out before wanting to sell. So that's kind of, that'll allow you to kind of dig in and see exactly what you need to change. But after that, you want to give out an offer, like I said, to at least 80% of the people that you have appointments with, because that's basically giving you a higher chance of putting something on the contract. And then if you are at like 30% closing ratio, that means that you're putting on the contract 1 out of 3 to 4 offers. And that's pretty good, right? So for us, our goal, just kind of looking into this month, we had a great month. Like I said, most people are getting 3, 4x return on their ad spend and we are having like a 15, 17, 18x. So for us, our goal is 50 leads a day. We want to increase our appointment set ratio to at least 50% because here it was like way off. It was like 40%, you know, that's bad. So I'm going to talk to the team about that. And then we want to give out an offer to at least 80% of the appointments that we complete. Sometimes we don't give out the offers because we are waiting on photos or the people are not that ready, or there's like another decision maker who needs to be on the call. So sometimes this can take like a week or two weeks to contact, contact them, right? Um, so we want to have an 80%, so 25 appointments, 20 offers, and then from this we expect like 4 contracts. So that's one contract in every 4 to 5 offers that we send out, and we want to make at least $20K per deal. So we are projecting around $80,000 a week in new signed revenue that can close. So if you look at our math for this month, we had an average of 21 leads to a contract because we got 211 leads and then we got 10 contracts. So if you divide that, we are getting 21 leads to a contract and it cost us on average $33 a lead. So that brings the numbers to around $691 $1,000 to get a contract. I mean, most people are paying $2,000 to $3,000, $4,000, $5,000. So we're just way more efficient. And I'm gonna break down some stuff that can help you. But we have success ratio of like 70%, meaning 30% of the deals are not going to close due to title issues, repairs, dispo, whatever. So we're accounting for a margin of error. So all in all, it cost us around $900 to $1,000 to get a deal closed. And in terms of ROI, that's huge because our average deal size is around $15,000. And with this month, we are projecting around $180,000. So if we multiply 180 times the 70% success ratio, realistically, we can close around $120,000 to $130,000 in closed actual revenue, but we only spend around $7,000. So the return on ad spend is around 18x. And the reason why I don't want to scale this, honestly, I like where we're at right now. I mean, we have 16 members, we have 2 lead managers, 2 closers, 1 dispo, and myself. And for me, I just sit in the marketing seat, make sure that the team is getting the leads by being good at marketing and making sure that we're talking to the right people. But I don't want to scale that so far because Last year I made a video on this. Last year I spent around $232,000 in marketing. And I mean, that sucked. Like my average return on investment was like 2.8x. Like I was so bad. The best one used to be PPC, which was giving us a 4.81. We spent $96,000 on that and we closed like $462,000 from that campaign. If I would have put the additional capital in PPC, call it like $130,000, we multiply that times 4.81, we would have closed an additional $500,000, $600,000. But the reason why I'm not scaling just yet is because I'm comfortable where we're at right now. Because in the end, it's all about how much cash flow you net after each month. So if we— I'm only spending $6,000 to $8,000 a month and I'm closing around 100, $80,000 to $100,000, I mean, and I pay my team, what, $20K from that? I mean, I'm netting myself $30,000, $40,000, $50,000, $60,000, $70,000. And just the risk to reward ratio, I like where we're at right now. And just for context, this year on Facebook, we've only spent $64,000 and we're making almost the same amount of revenue from last year. So I'm saving way more money from last year and I'm making around the same, but the majority of it is going to be net profit. So whenever you guys are looking at this and you're looking at your business, you need to figure out exactly how much money you want to net, because I don't want to have a huge operation where you're making $3, $4, $5 million a year. Like, in, in essence, all of that is going to come down to marketing and sales team, but you have so many moving parts. So for me it's like, okay, I can delegate almost everything to my team and I have less moving parts, less headache, less risk. So for this year, we're gonna be way more efficient 'cause we've only spent like $64,000. Like that's less than half of what I spent last year. And the fact that we're gonna make almost the same amount of revenue, I mean it's crazy. And I do plan on scaling this a little bit more I'm just a little bit comfortable where we're at right now and I don't feel the need to just like scaling a little bit further. I do want to, 'cause I wanna bring more people onto the team and I wanna get consistent with $200,000 per month of closed revenue. And I know we can do it just because if you see the math, it's crazy. So what can you do in your business to get similar results? 'Cause the reality is like, It's no secret, it's just a bunch of hard work, right? So we do help clients with the Facebook stuff, but I'm going to give you some action items that you could do, right? So first and foremost, you guys seen the videos of like my mistakes. So number one is you need to become a better leader for yourself or for your team, meaning you need to get the skills that are going to get you to your goal, whatever that means. You got to become an A player, right? Number 2, whatever marketing channel you are doing, you need to bring it in-house. For us, you know that we crush with Facebook ads. That's what we teach our clients and they crush with that. So by me putting this into my business and learning it, that gave me an ROI that's like, it's infinite because now I know exactly what I need to do. And then my cost per deal in marketing is like way less and I'm making way more money. So whatever marketing channel you are doing, bring it in-house. And if you want help with Facebook ads, we can help you. And then you can implement our processes for selling the deals anywhere in the country. Number 3 is after you bring it in-house, you need to get very good at marketing. I think marketing is way more important than sales because good marketing should not feel, should not have the need of having like a pushy sales process or a salesman, right? If the marketing can tell the story and target people, only the people that you want to work with, I mean, you're doing great. And the better that you get at this, the more efficient that you will become. Meaning you don't need to spend all this money to get the revenue that you want, as you see from my example. But the better that you get at it, the more money you're going to make. Okay? Number 4, you need to get very good at hiring, delegating, and actually training the team. So for me, I, whenever I bring someone on, I give them a clear SOP, instructions, manual courses of what they need to do. And what their role entails for the company. So a lot of people complain about their people, but it's all your fault. If you're not where you wanna be, it's all your fault. And if someone quits, you need to blame yourself 'cause either one, you didn't give them the proper training, expectations, SOPs, held them accountable, or you didn't do your job making sure that they were gonna be a core value fit for your business. So the more that you invest in your team, the better that you're going to do. So for them, I have them on a bunch of sales training, stuff like that, refreshes their mind. And then I hold them accountable, you know, each week, listen to the calls, and I make sure that they're saying what they need to say on the phone call, asking the right questions, and, you know, really digging into the motivation. Which brings us to point number 5. What we are doing differently is we're really focusing on the sales process. You know, nowadays there's a ton of blood in the water. A lot of people want to sell, but the market kind of sucks. So what I told the team is like, hey, we cannot do what we're doing before if we want to keep having the same results. We need to actually dig deep into the motivation. So what we did was we are spending double the time on the appointment calls or in-person appointments with the sellers that said that they did want to sell. And we're digging deep, deep into the motivation, what selling the property accomplishes, what options they have looked at before. What we need to do in order for them to sell, what is that going to do for their life in terms of emotional stress, physical stress? Is it preventing them from doing something, accomplishing something? And we basically just want to have an open-ended conversation where we just build so much trust, where we are able to tell them like, hey, my job is not to lie to you. My job is to tell you exactly how I can help you. And the more that you tell me, the more that I could do for you, right? So if we can even the playing field and where we can overcome all of their objections and really figure out exactly what needs to in order for them to sell by going over their options, showing them exactly how we work, you know, how we make money, how everything with the market kind of sucks, and we really, really build that trust, you're going to be able to get more deals. So we're focusing exactly on this, just becoming friends with a seller and just bringing value and helping them move to the next, you know, stage of their life. And whatever we need to do, like, we're going to be able to do. So that's one of the huge changes that we have put into this year. You know, there's so much competition and you don't want to sound the same as every other wholesaler. So if you need help with the sales process, we can also help you with this. So with the Facebook and the sales, we're helping a ton of the clients make a ton of money. So if you already are spending money and have the capital to invest, I'd love to help you, you know, scale, and maybe you can get same results as me. But with that being said, the better that you get at it, you can hold your team accountable and you can build a great culture. So this is super important because if you don't know what it needs to, like how much money you need to spend in order for your team to have the appointments and for you to send out the offers, like you don't have a business, you just have hustle, you're just hustling. So the more that you're able to hold them accountable and really reverse engineer your numbers, to get to where you want to get. Like, it's not going to happen by magic. You actually put in the work, become better, become a better leader, spend money in the marketing, make sure that you're tracking your conversions, learn the marketing, get better results, crush the sales process, and just make more money. And I know for sure, if you do these things and really focus in on the sales, at least like for this video, that's going to help you a ton. And if you're someone, like I said, if you're already doing deals and you like my videos and you're not subscribed, subscribe. But if you like what, you know, how I teach you all this stuff, make sure you book a call down below. I love to help you scale your business and take you to that next level. But with that being said, I've made other videos on Facebook stuff. If you are interested on that, uh, check it down below. And if you want us to help you, like I said, just book a call down below and see how we can help you. Thank you, guys.