Pick lead channels where your customers already spend time, then test one deeply rather than spreading thin. Expect to lose money for 6 to 12 months before seeing returns, with some businesses needing $100,000 invested before hitting a 25x payoff by year seven or eight.
Questions this video answers
February 2016
$100,000
About $9,000 per month for nine months
Poor returns for first 1–3 years with break-even later; cites potential ~25× return by years 7–8
Six to twelve months
I promise you this is so far from anything that you've ever been to. And now. Alright, so selecting and implementing lead generation channels. And we're going to go through this list on page 21 and I'm going to go through them just one by one and kind of talk to them. And I want you guys, as I'm going through them to make comments on fit, on impact, effectiveness, credibility and cost for each of these. And some may not work for me and you may hear me talk about reasons why they wouldn't work like in a market. I'm thinking of Greg for this example. Like there are specific. There's one that you guys do that goes to a target farm or something that I would push you a little bit in something like that. When you open it and you see 20 agents advertise, if they all look the same and yours looks the same, then I think you can apply some of this stuff to make that better. So I don't do print, but it doesn't mean that there aren't certain print publications that you couldn't do with an effective targeted message. So we'll go through that. Identify a range of appropriate channels that fit your target market, how they live their daily lives and what types of channels might reach them. I do believe that like retargeting and YouTube and Facebook and some of the social platforms that are out there, I mean that is how people live. Like way too much of their life is lived on those different platforms. So we need to be able to take advantage of it. Evaluate each channel in terms of cost and coverage. Keep the variables as consistent as possible. Evaluate each channel in terms of relevant subjective criteria. And we'll go through that here in a second. I don't know why I gave you so many. I don't want everyone in the next three to six months picking eight different channels to go after that. They're not going after currently because you will go broke doing that. So this is like one at a time and when we test a radio. So when I added Bob and Sherry, it was like I wasn't going to do anything else for like a year. And the first month I was like, oh, like what happened on that call? Like I'm sort of really like. But like that call specifically, but it was only one call. We're like, well what happened on that one call? Because it cost $4,000 that one call. So I need to know what was said on that call. So you definitely want to dial it in. You don't want to do too much. This is definitely A go deep, not wide. I think it's always go deep and not wide. Because my next consideration is with the endorsement, with the Barbara Corcoran thing, if I should do network morning. So it's just awful being on cable. Like, how many of you are watching commercials during Shark Tank reruns? Nobody. But I had three guys in my gym come up to me after I started that digital farming with Frank. Three guys in a small gym come up to me, be like, hey, I saw your commercial with, you know, just when I had done that, and I only spent like 300 bucks so far in the three weeks doing that. So there's just some cool things that you could do when you really understand these things and you don't always have to understand. So I was having a conversation with Ryan, like, you don't have to be. He was like, but yeah, what if this isn't my core? I think there's a level of understanding in marketing that you just need to, you need to deal with. You need to really own the fact that there's nobody else that's going to come into your company and become your marketing expert. This is stuff if you want to have real impact in your market that you need to be able to master, determine your budget. You need to have six to 12 months of expecting not a whole lot of return on some of this stuff. And really think hard about. A good example for me was farming this year. I just don't think I had the patience for it. And I told myself that, yeah, it's going to be great to not make a single dime in a year, but year two is going to be a little bit better. And then year three, and then I'll be really loving this at year seven, eight, when it's like a 25 times return. You know how much it sucks to lose like $9,000 a month for nine months in a row and be like, yeah, but this was the plan. So really, really think about when you're going to break even and be committed to it and have $100,000. In that case.
Talking about farming, do you think you could get the same effect from farming on Facebook or online with it popping up as opposed to a postcard going every month?
Because it would be a lot cheaper.
And you're still showing up. You could still show up in front of the same people.
Oh, 100%. Yeah, that's exactly what I'm talking to. But it comes from the same sort of messaging. Like it's, it's more effective to. You're gonna capture if you want to deal in Valentine. I don't know if there's a way on Facebook you can only talk to Valentine. But if you want to have Valentine listings, you could say, you know, find out whatever, like the seven things you don't know that you should know if you're selling a Valentine home. You don't have to get the same results because it's right. Yeah, impressions. And some of the things that like Frank has me doing, he said that a lot of people, you know, when you scroll through video, like, you don't actually click on the video. So he'll have you just like you're standing there and holding signs and you're like, you know, first time buyer, question mark, and then you're going through the sign and just like things, like things that you don't see. And I just think it, it becomes pretty fun.
