The Pitfalls Of Poor Wholesaling Marketing ROI

The Pitfalls Of Poor Wholesaling Marketing ROI

How does your wholesaling marketing ROI stack up against the competition? Are you prepared for the side effects of failing to demand the best possible return on your wholesaling marketing efforts?

What’s the big deal about better wholesaling marketing ROI? Unfortunately this is the attitude of many investors that solely focus on the next deal’s profits and doing anything to bring in another lead regardless of the real cost. And it can have serious consequences.

This isn’t about having a big marketing budget for finding 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 for long if you are paying 100 times what the competition is for a closed lead. In the meantime they’ll be amassing a serious war chest to unleash on branding and outreach and to drown you out of business.

The many side effects of lack luster returns on wholesaling marketing include working a lot more hours to achieve similar results, having less free time, hire labor costs, reduced deal flow, limited units flipped for the entire year (and the next, and the next…).

The sad thing is many wholesalers don’t even bother to measure their return on investment from various marketing strategies. How do you know where to invest your next month’s marketing budget, or not if you don’t even know what your channels are yielding? For example; you could be spending $5,000 a month on a billboard that brings in zero leads, while only investing $500 in online marketing which could average a new lead for every $2.50 spent. This is going on out there every day.

Many also fail to truly calculate all of the expenses associated with various wholesaling advertising options too. What about labor, management, length of the cash flow cycle, the percentage earned on different types of deals and conversion ratios.

All types of advertising work and wholesaling companies out to have a good mix, but ensure your firm is demanding the best possible performance or pay the price. If you are stuck here, are not sure you have the calculations right, or know that you are way over spending perhaps it’s time to invest more in real estate investing education, testing marketing or even in coaching which can help improve the ROI of all your deals going forward year after year.

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