Matching the Message to the Target Market to get a Qualified Lead
It’s more than a “Numbers Game”
Why do you need to seek out and generate leads? It is a proven fact in all business, that
More Leads = More Deals = More Profit
But Marko Rubel teaches his students that the goal in attracting leads is to gain quality as well as quantity.
In this segment, we teach you how to improve your odds by spending less money by focusing in on the leads that will give you the best bang for your buck; Keeping your cost per lead ratio as low as possible, therefore increasing your profits.
“Shotgun vs. Targeted’” method for obtaining motivated sellers
The Shotgun Method involves buying a list of several zip codes and contacting everyone on the list by one form or another. The other name for this strategy is ‘blind archery’, because you are essentially shooting a hundred arrows up in the air, hoping one of them falls back down and hits a bullseye. This is based on the direct marketing method – It is neither cost effective nor time efficient for those students just starting out – but once you become a seasoned professional using Marko Rubel’s techniques, you will be able to successfully use this method.
More importantly, in dealing with real estate lead generation, The Shotgun Method does not allow you to “divide and conquer” by addressing the specific needs of each type of lead.
The important fact to know about your specific leads is “Why are they seeking to sell?”
Are they behind in-house payments? Are they going through a divorce? Were they just laid off from work? With the shotgun approach, you will never know.
The message you will send out to each of these target groups depends on the motivation behind each of the target markets. You will want to match the message to the target group or as we at Real Estate money – “market match”.
The Target Method involves purchasing a list of people in foreclosure, or lists of people from realtors’ listings that have expired – from people in your local area that compile specific target lists weekly. Once you have these lists you can then send a targeted message out to each separate target group addressing their specific reason for selling their home. This will allow you to bond with your potential seller on a more personal level thus increasing their trust in you. As you become more experienced in finding qualified leads, you will come to know who the reputable list brokers are that can offer you the specific target groups you want to market to.
Using the Target Method to obtain leads is a much more efficient use of your time and money because you will be matching your message to your target market. You will also greatly increase the response rate and relationship connection you have with the potential leads greatly increasing your chances of obtaining a qualified lead.
In a short amount of time you will begin to be able to predict a response rate for your marketing. For example, if you know that in one month you can get 30 responses per 1000 marketing pieces, or a 3% response rate (which is pretty good), then you will start to understand that 5 out of 30 of these leads will have the makings of a deal. Then if you know that you can close 4 of those deals, you will have the basis of an efficient and profitable business.
Tools for Targeted Marketing
- Create a sequence of 5 messages with a precisely crafted message which can be slightly adjusted over time accordingly to the progress of their foreclosure process.
- Use “linked” letters to target expired listings. Again, this is a planned sequence of messages that resonate with disappointed homeowners who worked with real estate agents and whose listing expired without having a buyer.
- Seek out high-response lists to market to
- The key to successful real estate investing business is to identify specific target markets and market to them using a specific message tailored precisely to that list.