Monday, May 25, 2015
Pay Attention to the Numbers
According to the National Association of Realtors, it takes 35 contacts to get one appointment, and four appointments to get one closed sale. If an investor wants to do one deal per month, s/he would need 48 appointments per year, and would need to talk with 1,680 prospects (140 per month, roughly 33 per week).
If most marketing methods, such as direct mail yield a 1% return, then this investor would need to mail to 168,000 contacts per year, or roughly 14,000 pieces per month. With an exceptional return rate of 2%, the investor would need to mail 7000 pieces per month.
If an investor cannot afford to spend that much on marketing, then one can easily see how their success rate might be expected to be significantly less than one deal per month. To get one deal per year, the investor would need to mail to 3500 contacts annually, or roughly 300 pieces of direct mail per month. This is typically where novice investors start.
Track the results of your marketing efforts. How much do you spend to get one lead? Use multiple marketing channels, and see which one(s) are the most effective for you. This is a numbers game, and success depends on sufficient market penetration to get results.
Great video on better productivity on YouTube on "The Science of Productivity."