Hey guys this is Haim Mamane Palman The Virtual Wholesaler Guy.
What I want to share with you this week is What do you do to diagnose your business?
I’m three to four weeks almost four weeks into the year and I start to see trends and now it’s time to diagnose and address issues things that work, that doesn’t work and I want to share it with you.
So far we made 19,000 mailers that include this week mailers that went out today. We spend $7,400 and I can start to see the number of leads, what’s the response rate or the cost per lead. The first week of the year was rough and I will say that that’s an outlier for now. But I can start to see that my response rate for the Absentee Owners List was one point forty-four percent (1.44%) and here for the Owner Occupied High Equity List is point seventy-five percent (.75%).
So we are getting calls, we are getting appointments, we have eight appointments from Owner Occupied High Equity campaign and nine appointments from Absentee Owners campaign and we have so far eighteen appointments for the year and that’s the concerning numbers we have ZERO deals so zero deals- eighteen appointments it means that I have a conversion issue. The main issue that I need to address is closing deals and I’m just dying to see getting the week or two that we start to close deals and everything starts to turn around. If we don’t close deals we will spend again $7,400.
Now I’ve asked my acquisition guy to record every appointment so we can review it together and see what things are working and what are not working in positioning, framing and having them go through a training by John Martinez which is a great training and kind of looking for other individuals to bring on the team and maybe to find an alternative solution because this has to turn around. My goal is by the end of March is to close five deals a month in the Memphis market and as you see things are not working at the moment but that’s fine, you just need to address this. If you think you want to send 500 mailers and thinking your going to get a deal, if you will be successful doing it, then you are lucky because in 1% response rate and my average right now is 1% response rate is kind of typical for direct mail, you have only ninety-three deals for the year and again it really depends, but one deal can change everything around and the numbers will start to make sense.
So I just want to share with you the Absentee Owner Campaign we send thirty-five to fifty-four mailers that’s what it cost us, and we got 51 calls and 41 leads and the Absentee Owner campaign had a better response rate, we had 1.44% response rate the cost per lead is $31, so every time the phone is ringing it’s $31. We had 9 appointments, we had 0 deals so far, the conversion rate is always 0% and every 4.5 leads, we schedule an appointment. So every time I put my guy in front of a seller It’s hundred forty-two dollars that I paid, so right now it doesn’t look very promising but let’s say I have one deal, one deal of $9,000 and the average is $9,000 profit and now things start to turn around to see just one closing, if we close one deal, the return on investment will be 703% and it’s important for you to see that because one deal can change everything around. With one deal for this campaign can change things around and if the closing start to close to two deals so let’s say we have now $18,000 and now the conversion is better with leads per deal ratio.
So for every twenty deals, everything starts to move forward. And we start rocking and rolling but the main point of this video is to show you that not everything is roses and rainbows in this business sometimes you need to go through the tough time and you just need to meet make tweaks and focus on the things that don’t work in your business. Change your focus, and right now for me it’s the acquisition piece of the conversion.
I got the mailers out and my lead manager screening and doing a fairly good job converting calls to appointments we have the numbers of appointments that we need, just by getting in front of the seller and getting the contract is the hardest part especially if you’re doing it virtually it’s not like you can take over and just tell your acquisition guy I’m sorry I’m taking over from now on, luckily my guy has a good attitude and he has a will to learn and doing a good work and he wants to be successful so I’m sticking with him. I’m looking for someone else to help me not because I have given up on him but because I think it’s a good way to won a business when you have two people for each position so if things don’t work out you’re not stuck with just one person especially if you’re running a virtual business.
There are few options, you can call wholesale and send another wholesale and split the deals or you can have two people and divide the city to the two acquisition people going to appointments, and you will review their work and create a competition and if things don’t work with one guy then the other guy can take over. So as a business owner it’s your responsibility to hire, train and manage the talent and this is something that I’m doing right now and it’s not fun and it’s painful because I don’t see results at the moment. I’m believing in a process and I also started to work with my coaching students, one guy is already getting a contract this week and he did one mailer and he sent a bunch of offers on the M.L.S. and one got accepted or in the process of getting accepted so he’s excited I’m excited and my other coaching student is in the process of selecting and markets so we are working together to select the market and put together our marketing plan and start to make offers, calls and just get the business grow.
So if you’re interested to learn, feel free to reach out to me and I’m looking for two more coaching students. I’m doing one on one until the end of March because I just launched my coaching program and I want to make sure I give it full attention to the first five to make sure that everything is working so they can see the results before doing more group coaching and they will still be having a one on one aspect for the primarily coaching.
So if you want to work with someone feel free to reach out to me and I’d be happy to help out a person to run a virtual business do deals and hopefully be in a better position financially and also personally. So that’s it for now at thanks for viewing this video and also don’t forget to share this video if you feel it can bring value to someone. Until next time, have a great weekend.