Is PPC marketing worth it?

Is PPC marketing worth it?

Is PPC marketing worth it?

           when you're doing Google ads you're  basically just riding the coattails of  everybody else's marketing dollars so  you're getting the best leads from  everybody else's marketing if you can  cut your cash conversion cycle in half  you can triple the revenue of the  business does and and learning how to  really uh dial in those metrics and then  reverse engineer is how you build a  successful wholesale real estate  business guys I'm sitting here with  someone who's helped wholesalers get 50

million in Acquisitions in wholesale  real estate and someone else who's  helped wholesalers sell billions  in wholesale real estate I'm really  excited for this masterclass series guys  I've got Rob Winsley and Brandon baitman  we're going to do a Roundtable  masterclass series all about one  specific marketing channel I mean we'll  cover a bunch of other things but we're  going to really do a deep dive onto  Google ads payperclick this this  mysterious strategy that the top  wholesalers

in the country all Implement  I think everybody at some point as they  progress in their in their business they  almost everyone I know of transitions  into PPC so we thought it' be super  valuable to help you really learn the  ins and outs and how you can start to  master the strategy of PPC so Rob it's  awesome to be here with you I love  hanging out doing all kind of stuff  appreciate Brandon thank you for flying  down here to Puerto Rico to come kick it  with us and yeah we got the ocea

n  literally like right here it's fun new  investor lift office just open this week  I'm really really glad that we're doing  this because like the the whole business  model we've kind of really mastered with  our investor of clients got the top guys  in the country guys that have hit a  million even two million a month with  very small teams right like dozen or  less people and the whole business mod I  always tell people it's really simple  you run Google ads to get the leads you  close t

hem and you sell them on invest  that's all we do stupid simple right  like how do you do that I'm like this is  it like it's very simple um but you see  the big guys doing and they have a lot  of success but a lot of people get in  they might spend 10 15 20 I've heard  people spend $50,000 on Google ads and  not get a single deal I mean Google will  take your money they will 100% so I'm  super glad that you came in here because  you're probably one of the top ex  probably the the most well

-known at  least in our space all our top guys all  use you to manage the Google ads and  what I want to do today I'm hoping we're  going to do today is  demystify Google ads uh teach everyone  how it works uh show what the top guys  they're doing like what makes people  successful on Google ads what makes  people fail on Google ads and at the end  of the series everyone has an  understanding of how it all works how to  be successful how to avoid failure and  can go and Implement in their b

usiness  and take their business to the next  level yeah this is going to be much like  uh hopefully like the series you and I  did Rob which was like how do you scale  to a million dollar a month real estate  business where we kind of broke down all  the mechanics of that we're going to try  to do something very similar with this  series with Brandon and I think first of  all Brandon I think what would be really  helpful is just to kind of help people  really understand the the big picture

of  PPC and why that is such a powerful uh  marketing channel in wholesale real  estate yeah I think um there's a lot of  people who love PPC I think I think  Robert you said it's a little bit polar  right people have like these awesome  experiences and then they have these  kind of rough experiences with PPC um  and what I think there's is missing in  this industry is the understanding of  why you know why do some people succeed  on such a high level a lot of  unrealistic expectations too

people  think they'll throw a, box at PPC and  they'll get 20 deals you know yeah  because you assume if I do what the  bigger companies are doing maybe I'm  going to have success but I think a lot  of it comes from understanding how PBC  really fits in to to the world of  marketing uh the way I picture it you've  got like over here you have like  outbound outbound channels right this is  going to be like your door knocking your  cold calling your texting maybe realtor  Outreach whatever i

t is very uh very  time intensive um but cheap yeah right  over here you've got inbound and that's  where PPC Falls for example um so the  difference here is outbound is you're  going to people and inbound they're  coming to you and and I want to make a  distinction here some people would call  like direct mail for example they would  say that's an inbound Channel because  people are calling you yeah I usually  consider it inbound it's not I call it  right in the middle because you sent  th

em a postcard they responded to your  postcard and came to you right so that's  that's like so you still reached out but  then they're responding back yeah so  that's why PBC is so popular because  it's about as far this way as you can go  this is people on a search engine  looking it's as if someone's going to  their mailbox and they're looking for a  postcard from an investor wanting to buy  their house yeah very high intent very  high intently it's the highest quality  they've gone and s

earched something like  how to sell an inherited home fast for  cash and that's way more valuable than  if I'm just cold calling someone saying  you're catching you're catching them  early in the process CU you're calling  them maybe they're early on in their  foreclosure process right whereas now  they're calling the Google ad when their  foreclosure is next Friday you know what  I mean the high intent happens with that  inbound I love something I learned from  you rob which which really f

or me helped  me understand it a whole lot better it's  all about who gets the ask the qu ask  the question of um what price do you  want so when you outbound and you say  what price do you want the seller gets  to say well you called me right right so  that puts them in the driver's seat when  they call you and and the and the topic  comes up about price you get to say well  you called me yeah completely different  whoever gets to say that gets has the  has the control gets the Deeper Disc

ount  right and and the Beautiful Thing is  with that high intent like the last time  an investor of company broke 2 million a  month we did it with just seven guys on  the team seven guys people thought we  had like 100 people in office like no  seven dudes because we knew that we  would close one in 10 leads from Google  ads and we just try to get 10 leads a  day 10 leads a day would give us one  deal a day we' make $50,000 per deal  that's $250,000 a week four weeks in a  month million d

oll a month so it's just  simple math it's very easy for a very  small sales team to handle 10 leads now  if we had if we're doing outbound  prospecting we would probably need 40 or  50 people to do the same amount of  Revenue so people say that Google ads is  more expensive it's more expensive per  lead but if you look about the total  amount of time it takes you the total  amount of resources total amount of  people um and effort that it takes to do  a deal yes it's Capital intensive  upf

ront but the total when you look at  the total cost to do a deal my argument  is it's a lot less expensive in the long  run uh once you got everything dialed in  and are doing it at scale one thing I uh  I did an analysis recently of a  collection of pnls within the industry  um and these were all companies doing  significant volume um call it3 to  $500,000 a month um some of which were  very heavily outbound driven and some of  which were very heavily inbound driven  very okay this is very

interesting it is  it is um Believe It or Not net margins  pretty similar across the board what the  difference was is the marketing like Roi  is the thing that people use like how  many dollars do I get out for what I put  in on inbound channels was actually  lower than it was in outbound channels  however the operational expense was  higher than the companies that had  outbound channels so that's kind of way  you just explained yeah bigger team so  the ones that were inbound they had a

lot less headaches a smaller team they  still get to the net margin that they  wanted and they just had a larger  marketing bill yeah um and and this  these are generalities right because  could you have a higher net margin on  inbound than outbound yes it depends on  how you do it right and that's what  we're going to talk about in this whole  series is how do you master this on such  a high level that you're going to um do  exceptionally well as a business see  that's interesting you say

that because  my experience has been like with all my  wholesale Partners is um our assignment  fees are just way bigger with inbound  than they are with outbound like we have  average maybe 10,000 is like a high  assignment fee with a text cold call or  agent model but like inbound that's  where you hit the 40 50k deals is on the  inbound leads it could be though that  you're doing a lot of realtor Outreach  right and the problem with doing realtor  Outreach is they've already priced  it w

ell yeah that's what I mean on  outbound outbound real Outreach is  different than out I agree with that  you'll do better in normal cold call and  text without Realtors from a deal spread  standpoint but PPC is still us higher  but I think bottom line though I think  what you did there looking at the net  profit margins of the companies is  brilliant I love that that's timately  all we care about day but like Jerry if  you were to run you had an option to be  a CEO of two companies one the

y both  make the same margins they both make the  same one has 50 employees one has 10  seven yeah seven which one you want to  well I'm very lifestyle driven so  clearly less employees yeah 100% all day  long so that that that is super  interesting I love that you did that  anybody who's ever been there would  answer the same yeah that makes that  makes it real sometimes it sounds good  until you get there of employ I mean no  one wants to wake up and say I can't  wait to go to the office

and manage my  50 employees like I don't think so yeah  keep it small absolutely so so that's  the value of it I I can give another  example of this I just had a a call with  a client recently where they were  showing me this this house um that they  had purchased so this house was in their  neighborhood actually so they would  where they lived yeah where they lived  they would drive by this house like on  their way to the office all the time and  it was like the most stereotypical  driving

for Dollar's house you've ever  seen run extremely rundown so they cold  call it they texted it they door knocked  it they did all this stuff like over and  over and over again because they  actually really liked it because it was  on this lot that was on the water in  their neighborhood and they're like that  house if it was rehab that would  actually be a really nice house um it's  just it hasn't been cared for um so  anyways they can't they can't seem to  get it this is like over six mo

nths that  they're doing this then one day through  PPC they get this phone call and they  talk to the person from the neighbor I  knew that's where you were going yes so  they talk to this person and they  actually realized like no you're the  owner of that house like we're  neighbors he called he inbounded on an  ad yep and they end up buying the house  they end up rehabbing it and now it's  their personal residence so it was a  like our clients did over 2400 deals  last year that's my fa

vorite out of the  the 2400 um but it's it's an interesting  story that illustrates the point that we  often think that the way that sellers  are going to find the companies they do  business with is the me whatever method  we found them through before um but  everybody has their own way that they're  going to find the company that they're  going to do business with and more and  more it's Google where they're going to  find those those companies that they do  business with turns out what s

omeone  types into Google is more predictive  than almost any other point as for  predicting their future Behavior right  like before I came here I probably  searched something on Google about like  flights to Puerto Rico  places to St in Puerto Rico Etc right  and that says more about me coming to  Puerto Rico than anything else that I  have in terms of data points on on my  life that any company could access so I  think it's a I think it's a really  interesting point and we've seen the  n

umber of people going to Google and  searching these kinds of things that  show that they're a motivated seller has  tripled in about the past four years wow  so more and more people volume has  tripled yes that is incredible now okay  my question is why I have a theory  curious to here okay jar what do you  think I have some theories too well I  think um I mean it's all a comparison to  other channels right so if you think  about maybe this isn't where you're  going but if you think about

like  texting and cold calling getting highly  regulated the carriers are getting  smarter just as far as Effectiveness  it's getting harder and harder to be  successful on those other channels  whereas you know coid happens I mean  most everybody's online and I think what  the point you're trying to make is is  Google now has so much data and if you  know how to look at the analytics we can  predict what sellers behaviors are going  to be is that kind of what you're saying  because we have

so many data points on  what they're doing that we've never had  before now so that's interesting thought  because the the thought there I think is  kind of that like okay maybe people are  doing less marketing on other channels  like they're doing less outbound so as a  result those people that normally would  have respond to a postcard and now going  and searching my thought I think it's  that I have yeah I have a thought I have  a thought that the older crowd cuz most  people that sell

to us like we need deep  Equity to be able to sell and houses if  if I'm a 25y old and I just bought my  first house like that house is not  distressed fast forward 25 years when  I'm 50 years old and I haven't done my  repairs now it's is stressed right so  people typically selling properties in  they can sell deeper yeah so our  motivated sellers are typically older  right they're typically 40 50 60 um  because that I mean that's the people  that need our solution the most and I  think th

at that crowd was going more  online like if you look at the Facebook  demographics Facebook used to be just  colleges it started off at Harvard it  was just Harvard now if you look at the  Facebook demographics the Facebook  demographics are more I think it's like  it's mostly older people it's mostly 50  60 plus and they're using Facebook to  keep you know keep in touch with their  grandkids and stuff like that so I'm I'm  guessing it would be interesting to look  at like adoption Trends

I'm guessing  it's just more people are getting  smartphones and they're the solo crowd  is on their phone more I that's my  theory what do you think I agree with  you I think there's also an aspect of  the new old people are yesterday's young  people right so the more they happens  like everything that happens in real  estate investing happens just like 10  years after it happened in the rest of  the world yeah like you talk to most  like tech companies these days or  anybody advertising t

o like younger  demographics they like don't know  anything outside of digital marketing  right if you talk about like direct ma  or cold calling they think you're some  type of dinosaur right so it's just it's  just following the trend um there's one  other thing so search marketing is  intent based for things to be intent  based people have to know that it's an  option right so let's just give like  another example right let's just say  some pharmaceutical drug comes around  and the reaso

n pharmaceutical drugs are  so popular with this is because um they  tend to be some of the highest cost per  click things on on Google um so so  anyways let's just say that happens  right if nobody knows about this is  search marketing going to work no cuz  harvesting demand that already exists in  the marketplace right so if companies  start running TV commercials for that  and start having doctors tell people  about that and all that stuff what  happens you start to now have people go  t

o Google to search for it right so if  you think of what's happened like we're  sending in as an industry like more  direct mail than ever we're doing more  cold calling than ever texting there's  ey buyers now who are normalizing this  idea of buying a house for cash is a  normal thing that you can actually have  for a lot of people don't even like when  I I remember okay I agree with this  because I remember when I got in the  game and I was explaining the business  to like family members

up in Canada or  whatever they were like wait you can do  that you can sell your house for cashes  is like there's a huge segment of the  population that doesn't even know that  that's an option what you're saying is  what the new I buyers coming in with  more marketing going out now more people  are just realizing that the word cash  buyer is now a mainstream thing never  has been before so if you know it's an  option you can search for it and when  doing Google ads you're basically just

writing the coattails of everybody  else's marketing dollars all those  postcards that they sent to people and  people put on their refrigerator and  reminded them like I can buy I can sell  my house for cash but then one day when  they're looking to do that because  Google is where we find so many of the  solutions that we have these days that's  where they go makes sense so you're  getting the best leads from everybody  else's marketing it's true if you think  about if I hear something o

n the radio  or I get something in the mail I'm G to  Google if I'm interested in that and see  what's going on you know I I know that  here's another I'll tell you another  funny story that kind of supports the  Siri I used to be in charge of sending a  direct mail and we'd send over a quarter  million postcards per month and then  what we do is after we drop the  postcards we drop them Monday Tuesday  Wednesday because that's when you get  the best response time and then we call  them Thu

rsday Friday and we'd reference  the postcard like hey I'm calling  because I sent you a postcard just want  to make sure you got it right so now  you're getting two touch points in a  week I forgot to send the mail one week  none of the postcards went out and we  did the calls it was a brand new list  the list had never been hit by us ever  before brand new list had never been hit  by us before the response rate on the  campaigns was exactly the same it was  exactly the same people were li

ke oh  yeah yeah no sorry I got your postcard I  just haven't had a chance because  everyone was hitting the same list and  so we just got rid of the direct mail  cuz someone else we just did the calls  and referenced the postcards and we  never sent the postcards we saved  ourselves so much  money  usually cash your cash conversion cycle  is this is huge most people do not  understand the impact of this we talked  about this talk about how important this  is because now you're doing more d

eals  over a given time period yeah so there's  only two numbers that matter in a real  estate wholesaling business number one  is return and adspend for every dollar  we spend on marketing how many dollars  we get back and number two is Cash  conversion cycle how fast do we do that  when we plug a dollar into marketing how  many days does it take before we return  a profit from those dollars now a lot of  people are fixated fixated fixated on  how much they making per  deal but if you look

at the volume you  got to look at instead of being stuck in  the deal what you got to do is like get  out of the trees and look at the forest  and look at like what would the numbers  be on an entire business over entire  year and if I've modeled it out like  what happens when you cut the cash  conversion cycle in  half if you can go  from 60 days between when you spend the  money and you get the money back down to  30  days technically you make twice as much  money you're making the same

amount per  on the marketing the total volume the  total revenue your business can do in a  year doubles but it actually more than  doubles I'll tell you why on each cash  conversion cycle you earn a profit right  I plugg a dollar in I got5 to $10 back  what I do with that is as a business  owner I'm going to reinvest a percentage  of that back in growth and allow my  marketing budget to grow so when we cut  down the cash conversion cycle as we cut  it down um I've modeled this out and  lik

e on a lot of businesses if you can  cut your cash conversion cycle in half  you can triple the revenue that the  business  does that's how the not one to one it's  a one to three growth from just from  your shorter cash conversion and now  cutting in half is a is a lot but just  shaving a few days off matters matters  hugely when cutting in half is is really  feasible if you're talking from or even  like flipping versus wholesaling or  something like that like that's that's  cold call to P

PC I mean you're going to  go from months of a cash conversion  cycle on typical cold call versus 30  days 45 days with PPC which is  absolutely accurate and you will find  people that will tell you with PPC it's  like three days in my experience they're  horrible at followup  so you don't want to be too focused on  this because a lot of people are just  focusing on how you know how how short  can I get this which often means you're  not doing a good job at closing those  leads from three m

onths or four months  follow up because you'll still get those  right so you'll see at the beginning  that you'll get some deals from from  leads that come in pretty quick um but  then over time that that amount of time  like gets wider and wider but yeah I  worked with a lot of companies where you  know it's 30 days on average for PPC and  then 60 for direct mail and then 90 for  cold call that's those are pretty on  cold call would be good I think it's  even longer north of is what I'm se

eing  on most companies yeah but 30 to 60 on  Google ads is like it's like that's  pretty standard yeah so like we're  literally talking one six the cash  conversion cycle one six now we just  talked about how cutting in half can  triple your  Revenue imagine if you cut it back to  one six the impact that that can have on  your business like it's it's a  completely different business so the  point is is you don't just look at the  dollar spend on the PPC you have to look  at the whole pictu

re you have to look at  how everything's affected by your  different marketing channels yeah and  what we're talking about here applies to  any business too it's not just real  estate investing it's not just  wholesaling any business in any business  those are the only two numbers that  matter and in any business if you do  this math and you apply the same  strategies uh you'll have the same  effect well what's fascinating to me is  like you know I've been doing wholesale  real estate for 2

0 years now and just in  the past few years with tools like  investor lift and just so much so much  advancement in technology that there's  so much predictability now where we can  almost we have metrics now in kpis where  we can almost know with some level of  certainty and accuracy what it takes to  build a a million dollar business in  wholesale real estate you know we don't  have that in flipping because every  house is different every rehab is  different there's no way to really  auto

mate or systematize flipping to a  certain extent right because every house  is different but not not wholesale real  estate it's and and learning how to  really uh dial in those metrics and then  reverse engineer is how you build a  successful wholesale real estate  business 100% or any business like any  business you got to be running it by the  numbers like these guys here and these  sales guys I know what they sell per  hour yeah and if they take a week off I  know exactly how much that

's going to  cost me when they book a week off or two  weeks off I know down two the hour how  much each one of them sells and if  they're going to take a week off I know  exactly how much it's going to cost and  if their numbers go down and their  dollars per hour sells sold goes down I  know within five minutes exactly why is  an activity based is it like I know  because you're tracking your everything  is tracked when you when you have your  kpis all dialed in it's really simple to  look

at a business and say Here's your  Breaking Point here's where you're  breaking now let's now we can go in here  and and work on that like we do that  with with my wholesale partner we we  look at their metrics every single month  and and then it's like okay here's where  we need now we can come in and support  you in this area that area and that's  what Google ads allows us to do better  than other Market Chanel you you you  can't get attribution like that on TV  you can't get attribution

like that on  radio you can't get attribution like  that on direct mail or texting or  calling yeah on Google you can track  everything to a t where exactly it came  from um and not just that if you work  with the right partner you can get a lot  of data of what those things should be  so we can we can look in for any of our  clients and see tell them like you are  because people make they like to make up  problems yeah that they have like oh I I  have a 3X return and I wanted a 5x  return

and it's because my cost per lead  is too high but then you could break it  down you can say well you're contacting  60% of your leads average is  82% yeah that's your problem right yeah  everyone wants to blame the lead I mean  it's so easy to blame the leads oh the  leads suck like every sales guy  automatically wants to say oh the leads  suck well because they can't possibly be  a it can't be them yeah it's got to be  the leads right it's so easy to blame  that but is it really the lead

s and now  with the right kpis we can really take a  look at that love that awesome well guys  this is kind of our intro video to this  series where the main thing was we hope  we want our Hope was to get you excited  about PPC and and uh really want to  learn this kind of mysterious marketing  channel uh I think like a lot of things  we tend to over complicate certain  things in real estate like I love what  you said it's like you know PPC get a  contract pop it on investor lift know  wher

e the buyers are done like why are  we over complicating this and that's so  easy for us to do so we want to  hopefully take this this marketing  channel that tends to be scary for a lot  of people mysterious in a lot of ways  like I don't know what we're doing and  then help you kind of get your head  around it and feel really good about  this strategy and some tips and  strategies best practices to really do  it well so on the next video what what's  our topic on the next video we're goin

g  to do we're going to talk about budgets  um so how do you know when it's the  right time in your business for this to  be a fit a lot of the negative press  that PPC gets is from people doing it  that shouldn't really be doing it in the  not ready yet yes good that's the number  one question I get about PPC when should  I start actually spending the money on  PBC so super excited for that video yeah  stay tuned we're going to Deep dive into  that and guys we're going to also put  some in

formation in the description  below Brandon's got some really good  toolkit resources and some things that  we're going to give you for free and  also information on how you can learn  more about PPC so be sure to check out 

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