How does your wholesale marketing ROI compare to the competition? Are you prepared for the side effects of not demanding the best possible performance from your wholesale marketing efforts?
What’s the deal with better ROI in wholesale marketing? Unfortunately, this is the attitude of many investors who focus solely on the profits of the next deal and will do anything to bring another advantage regardless of the actual cost. And it can have serious consequences.
It’s not about having a huge marketing budget to find motivated sellers, cash buyers, or private lenders. In fact, sometimes the bigger the budget, the bigger the waste. It doesn’t matter if you have the biggest budget in the country, you won’t be around for long if you’re paying 100 times what your competition is paying for a closed opportunity. In the meantime, they will be amassing a major war chest to unleash the brand and reach and put you out of business.
The many side effects of the lack of profitability in wholesale marketing include working much longer hours to achieve similar results, having less free time, hired labor costs, reduced business flow, limited units sold throughout the year (and the next, and the next). … ).
The sad thing is that many wholesalers don’t even bother to measure the ROI of various marketing strategies. How do you know where to invest next month’s marketing budget, or not, if you don’t even know what your channels are generating? For example; You could be spending $5,000 per month on a billboard that generates zero leads, while only spending $500 on online marketing, which could average out one new lead for every $2.50 spent. This is happening out there every day.
Many also don’t really calculate all the expenses associated with various wholesale advertising options. What about labor, management, cash flow cycle length, percentage earned on different types of transactions, and conversion rates?
All types of advertising work and wholesale companies are looking to have a good mix, but make sure your company demands the best possible performance or pays the price. If you’re stuck here, aren’t sure you’ve got the math right, or know you’re spending too much, maybe it’s time to invest more in real estate investment education, test marketing, or even training that can help improve everyone’s ROI. its offers that advance year after year.