Posted on: February 12, 2018

In today’s episode, go-giver and host of the awesome and informative radio show Right Path Real Estate Radio Jason Bible got into the specifics of running a successful billboard campaign—what to say, where to get them, and how to negotiate with companies to score the best prices, among other things.

In this episode, you’ll also discover

  • What you should split test
  • Why marketing is a game of exclusion
  • Why you need to take your pay-per-click campaign seriously
  • Why you need to own your branded search
  • The 2 components of wealth building
  • Why equity is your safety net
  • The books you should read

So many real estate gold nuggets in this episode, you’ll never look at real estate and marketing the same way again!

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Episode Transcription

Tom Krol: Well, let me ask you this question. Let’s get specific into, have you split tested them? What should they say? What color are they? What are some of the verbiage that we should be putting on these billboards?

Jason Bible: So, here’s the problem with split testing. I’ve got kind of an ax to grind with it. What you’re really split testing is, am I going to buy more houses from A than B? Right? I mean, that’s what you’re trying to do. You’re trying to figure out what works better A or B?

Tom Krol: Right.

Jason Bible: The problem is most people infer call volume, lead volume as what works better than A or B, and not what really matters, which is how many houses am I buying?

Tom Krol: I totally agree with that. Yeah, most people are tracking the wrong thing.

Jason Bible: They’re tracking the apps. So, I’ll give you an example. I have a direct mail campaign that I spend five, 6,000 bucks a year on. I get two phone calls a year, and we’ve been running this campaign for four years now. I get two phone calls a year for 5,000 bucks. They’re $2,500 phone calls.

Tom Krol: Right.

Jason Bible: One of those phone calls we close and we make $50,000, but if you go with the traditional real estate marketing kind of guru speak, well, you’re not getting enough responses, therefore you should cancel that campaign. And I’m like, that’s ridiculous. We’re making $50,000 on a five grand spend.

Tom Krol: Right.

Jason Bible: In fact, if I could spend more money in that campaign, I’d do it. So, I don’t believe in split testing. I just don’t. Now, I believe it’s stuff that looks good and it’s got to have your brand on it and it’s got to communicate your message. But here’s the reality of this business, and probably the best way I could do this is through an analogy.
So my business partner, Tom, we had a storm blow through. He lives in Sugarland as well, and he had a storm blow through his neighborhood, and it knocked down four trees in his backyard.

Tom Krol: Got it.

Jason Bible: He had been marketed to by the neighborhood arborists for months, but until those trees blew down, he didn’t need an arborist.

Tom Krol: Got it.

Jason Bible: So, what most people miss in this business is, they don’t need somebody to buy their house until they need somebody to buy their house. Talk to a group of landlords and go, “Hey landlords, how much mail do y’all get?” And they all giggle and laugh. They’re like, “I get yellow letters like every day,” right? “And postcards.” And in this front of group, I’ll say, “Hey, have you ever gotten a yellow letter that’s written so well that you just go, damn! I need to sell my house to this guy.” No, that never happens!

Tom Krol: Right.

Jason Bible: Ever. Nobody ever gets such a compelling piece of mail that they go, “Oh yes, I must sell this house to this guy cause this piece of mail is so good.” No. What happens is there’s a storm in their life, and the trees get blown down, and now they’re looking for somebody to help them out. That’s what happens. That’s why consistency is so important.

Tom Krol: Okay, I’ll tell you what, and when you were first going down this road, I was like, “I don’t know if I agree with this,” but I got to tell you, you’re bringing up a very compelling point. You really are. I mean, I’m a huge believer in split testing with direct mail because it’s so granular. You can get very specific with it. But I got to tell you, you’re really raising an interesting point. Which is, how compelling is the mail piece or are they just calling when that storm hits? You know, emotionally. What we always say is, the people who want to sacrifice price for speed and convenience and that’s usually, there’s something on their timeline that’s prompted that. So, it is something that is pretty interesting to hear your perspective on because we normally feel the opposite way about split testing. Especially when it comes to direct mail because you could sort the list, so that’s interesting.

Jason Bible: I don’t want to completely poo-poo the idea, all I want to say is I think we spend too much time majoring in something that, in the grand scheme of things, doesn’t matter.

Tom Krol: Yeah, no I agree. I think there is some validity to it because there are definitely, we have found mail pieces that will outperform consistently over a three or four time split test. What we will do is, we sort the list alphabetically, and we’ll do big 5, 10, 20,000 piece mailers, and I can tell you for sure, “Hey, this card will outperform this card.” And not in response rate.
And you also brought up a very good point, I do want to kind of go over that in case anybody missed it. What Jason was talking about is, if you are split testing or even if you’re not, if you’re just measuring, you always measure for the conversion rate, not the response rate. This is important because actually a big response rate could be very bad, it’s like pouring molasses all over your company. If you have a really high response rate, now you’re going to have a ton of phone calls, but none of them are converting. It’s actually doing the opposite. So, always-

Jason Bible: Absolutely.

Tom Krol: Measure the conversion, not the response.

Jason Bible: It’s so funny, we get a lot of people in our group that are spending 10, $15,000 a month in marketing, and I’ll sit down and we’ll completely revamp their marketing program, get them way better results for a quarter of what they’re spending.

Tom Krol: Right.

Jason Bible: I mean, you’re doing all this stuff and you only need to do this, and you know what the reality is? What are you really trying to do with marketing? Marketing is a game of exclusion. Meaning, there’s a whole lot of people out there that own houses that I don’t want to talk to because they’re not going to sell it to me. And here’s the other thing people got to realize; I’m selling time. That’s all we do in this business. We sell time. And the time we’re selling is, “Hey look, you can list this with an agent, you can fix it up yourself and you could sell it, or I can write you a check today. What do you want to do?”

Tom Krol: Right.

Jason Bible: And there’s a cost associated with selling it to me, and selling it yourself, or through a real estate agent. There’s a cost to doing any of those things. So if you value your time, sell it to me.

Tom Krol: I love it.

Jason Bible: If you don’t value your time, go deal with a real estate agent.

Tom Krol: 100% true, I find the same to be true. All right, so let me go back to the billboards. Okay, so somebody who’s listening to you, they’re saying, “Hey Jason, I’m ready. I have the commitment. I’m going to do this. Let’s go into it.” What should these things say? Do you have any advice for, if someone’s going to do it; size, shape, color, message. Anything like that?

Jason Bible: Oh, I’ll show you if you want. Oh, I guess we do just audio. I was going to turn on the video and show you what it looks like. It looks a lot like, I’ve got our door hanger sitting here, and it’s our logo. We’ve got a little greenhouse, our logos are green and black, we’ve got a little green house with a dollar sign in it, and then it has the name of our company, Houstonhousebuyers.com. And then, underneath that, we also own Sell Us Your House, so underneath Houston House Buyers it says Sell Us Your House and the phone number. That’s it.

Tom Krol: So what I’m going to do is, if you don’t mind, if you can send us a little snapshot of that? What I’ll do is, I’ll actually put it you guys on this podcast episode. If you go to Wholesaling Inc, wholesalinginc.com, and then you go to the podcast. If you go to Jason Bible’s podcast, I will actually put an image right in the description so that you guys can see it. We’ll put a link to the image, or what we’ll do is we’ll just put a link right to your site. So, if you have a site that they can go to, that’s fine too. But we’ll make sure that there’s access to that, so that if anybody’s thinking, “Hey, you know what, I want to do this, I want to try it. I’m ready to make the commitment”, then we’ll make an image of it so that they can see best practices.

Jason Bible: Yeah, I mean, it’s simple. What is your company say that you do? You know, Bob Buys Houses. Great, Bob Buys Houses, there’s a phone number. Now, one of the things you got to realize with billboards in any of these type of marketing campaigns, TV, radio, billboards, back of taxi cabs, on the side of buses and park benches and all that, you’ve got to have a very active pay-per-click marketing campaign, because what will happen is people will see it. What we find is about 50% of folks will just pick up the phone and call us, and the other 50% will search online regardless of what the marketing channel is. So, when you start doing these bigger campaigns, you really need to take your pay-per-click marketing very seriously. You need to be, I don’t advocate the top spot, but at least number two or number three. And you better own your branded search, because if you don’t, you’re going to be just pouring money away.

Tom Krol: Yeah, a lot of good points there, guys. I mean, too many to really deep dive, but the bottom line is, yeah, I totally agree, and it’s very important. I mean, I can tell you, one thing we do as a line item, and Jason and I were just talking before the call about this, I actually put my PPC, my Facebook advertising, and my SEO, and my website all into one line item. So we track the ROI on the internet just from that. But, it’s very hard to track, we find, because our mail piece has our website on it. So, are they going to the website because of the PPC, the SEO, the Facebook, did they see something somewhere else? It is important to own that and to make sure that if Bob Buys Houses, that it’s Bobbuyshouses.com that you own it, because they will absolutely look you up. So all right, so awesome. So, we are going to give them an example that is a huge give, you guys, I hope everybody recognizes that.
So, awesome. Before I let you off the hook here, I also want to keep you in the hot seat and talk about what you touched on briefly about wealth, and what that really means, and how you interpret it, and what it looks like. Can you tell us a little bit more about kind of where you were going with that?

Jason Bible: Absolutely. So, when we talk about wealth building, and there’s a big real estate club here in Houston, they’re international, and they teach “wealth building”, and I was a part of that group, and one of the things I’ve found is they only had 50% of the equation. Wealth is built in, I don’t want to call it a two-legged stool, but essentially it’s got two components to it. One is equity, and that’s equity today, and the other is cashflow. You cannot build wealth without cashflow and equity.

Tom Krol: Okay, I love where you’re going with this. I love it. So, let’s break that down because some of our listeners are kind of just brand new to investing in real estate. Can you explain each part of that equation and what that means exactly?

Jason Bible: Absolutely. So, let’s say you go buy a rental property. There are properties in Florida just like there are in Houston, where you can buy a rental property at full retail value, and it will cash flow, right? And these people will tell me, “Well I’m a real estate investor.” And I’ll say, “No, you’re not. You’re a real estate speculator.” There’s a big difference.

Tom Krol: Okay.

Jason Bible: And so then, I’ll talk to a flipper, who’s flipping houses, that will say, “Well I’m building house with flipping”, and I’ll say, “No you’re not. You’ve got equity.” They have to sell the house to release that equity. But, they’ve got no what? Cashflow.

Tom Krol: Got it.

Jason Bible: It takes cashflow and equity to build wealth period, and whenever I have this debate with people I’m like, “You don’t understand, there is no debate here.”

Tom Krol: Absolutely.

Jason Bible: This is how it works. It’s like a Law of Gravity. You need equity in the deal. Why do you need equity in the deal, you need equity as what? What I talked about earlier, it’s a risk management tool.

Tom Krol: Right.

Jason Bible: If the market falls 30% and you’ve got 30% equity, you’re at breakeven. Hey, no big deal. If what happened in Houston a month ago happens in Florida, actually did go through Florida, right?

Tom Krol: Right.

Jason Bible: And all of a sudden you guys have a 30% markdown on your property, at least you’re breaking even.

Tom Krol: So, this is such pure gold advice. Jason, as also being a coach, having the same conversation with peers and with students all the time, I absolutely, totally agree with you 100%. This is one of the benefits, by the way guys, of wholesaling because one thing we get to do, is we get to make a lot of cash, and I’m sure Jason does this exactly the same thing, you can cherry pick the very best deals. You can pay cash for them, and you can buy them for 30, 40, 50, 60, 70 cents on the dollar, so you have the immediate equity play where you increase your net worth. This is what Gary Keller talks about in The Millionaire Real Estate Investor, is the equity. And then, you also have the cashflow, which is the passive income that’s coming in. So, you have the huge ROI.
But as soon as you, for instance, I bought a house on Monday, I was telling Jason about, I paid $95,000 for the house. The house is worth 140,000 so I instantly made $45,000 of equity, of my net worth, going up. I turned that 100,000 say, into 150, so amazing, and I have all the cashflow from it. You can do this as a real estate investor, it is the best way to become wealthy, and that’s why most of the wealthy do come from real estate, for exactly what he’s talking about. So yeah, Jason, I wasn’t sure where you were going to go with that, and I totally agree wholeheartedly, and I think everybody needs to write that down, and make it a core value in their life for building wealth. I totally agree.

Jason Bible: Yeah. What we see right now, I’ll tell you, I see a lot of commercial real estate in Houston that is headed for a real rough patch, and we’ve been predicting this for about a year and a half now, two years. And I’ll tell you what it is. It’s multifamily investors that are buying class B and class C assets on a seven cap. They have no equity in these things.

Tom Krol: Right.

Jason Bible: So, what happens when mortgage rates reset? What happens when banks won’t refinance you? That equity is your safety net. It’s not the cashflow, it’s the equity that really saves you, and the cashflow keeps you in business. And when you really get right down to it, equity is really your profit.

Tom Krol: I agree. I totally agree.

Jason Bible: Even the deal you did, I mean, you can amass a pretty sweet little rental portfolio, get them paid off, you’re making good money. But, if you ever want to upgrade an asset class and start going after commercial and multifamily, all that kind of stuff, you’ve got to have equity in those things, so you get that big equity pop when you 10/31 in to a larger asset class. And, I see a lot of people that are buying stuff at 80, 90, 95 cents on the dollar and they’re calling themselves real estate investors. I’m like, you’re not, man. You’re just-

Tom Krol: Absolutely.

Jason Bible: You’re just, all you do is cashflow skimming.

Tom Krol: I know a lot of you guys who are listening, you might getting a little lost right now, because we’re talking about cap rates, and we’re talking about a few different things, 10/31 exchanges. Let me just say this to you, if you are just starting out, don’t worry about any of this stuff. The bottom line is, as a real estate investor, you have access to find properties for pennies on the dollar and to profit from that. And that will lead to building the right type of wealth. If you’re feeling a little overwhelmed, don’t be, that’s stuff that you can learn about later on. And I’m sure Jason could even teach me a lot about it because I’m still kind of new. I always think this is really more of a pawn shop than a real estate business.
So Jason, that is awesome. I totally agree with you. So yeah brother, I want to thank you for that share with the billboards. I can guarantee you there are going to be people, we have a crazy rhinos, salty rhinos in this tribe who are going to go out there and they are going to make this happen, including myself, you guys., So I will let you know, I will put this on the calendar to do a podcast in 18 months with Jason, if you’re okay with that? And I will give you my results. I’ll let you know, and I’m definitely going to pour some money into it, and I am not going to contact Jason. I’m going to use exactly the information from this show so I don’t have any unfair advantage, and you guys, I’ll share the results, but I know they’re going to be stellar. So I’m looking forward to it.

Jason Bible: Yeah, absolutely. Here’s what I’ll tell you, here’s the other secret to billboards.

Tom Krol: Yeah.

Jason Bible: I always hate to say there’s a secret in real estate because it always sounds so lame, but this is a secret in billboards. In the billboard business, you don’t want to sign a 12 month contract. What you want to do, is you want, there’s two products out there. One is vinyl, meaning the sign is vinyl, and they wrap it over the billboard.

Tom Krol: Got it.

Jason Bible: There’s a cheaper product that they call paper. It’s not a real paper, it’s a paper you can put outside. It’s like laminated, kind of fibery thing.

Tom Krol: Okay.

Jason Bible: Here’s what you do. You sign a 16 week contract and rotate your billboards every four to six weeks.

Tom Krol: Okay, got it. Rotate your billboards every four to six, meaning you’re replacing the paper?

Jason Bible: Well, actually you’re not replacing it. Here’s what happens. Those paper billboards, you’re not able to take down without damaging them. And the billboard company will not take down advertisers and put up a blank advertisement. In other words, no advertisement, because that costs them money.

Tom Krol: Got it.

Jason Bible: So, what you do is, you buy new paper billboards every to eight weeks and have them rotate them to different billboard locations. So, your old ones stayed up until they’re sold.

Tom Krol: I love it. I got it. I understand completely. Right.

Jason Bible: So, you end up with, like what we did, we were signing 75 or 100 billboard contracts, and then we would rotate them. So we would end up with 30, 40, 50% that were still up.

Tom Krol: When you’re saying rotating, you’re not saying physically removing one and putting it from sign one-

Jason Bible: No.

Tom Krol: You’re saying just rotating the contracts, like buying another 16 weeks somewhere else?

Jason Bible: Yes, exactly. So I’ll be on, let’s say the billboard here in Katy and six in Baytown, just as an example. And then in six weeks I want the seven in Sugarland and the 15 in Cyprus. But, they’re not going to take my billboards down until that inventory is sold to another advertiser.

Tom Krol: I love it, it’s a great trick. I love it. That is a secret. That is definitely a secret. You could have sold that as a 197.

Jason Bible: Oh, I know. Well yeah, I guess.

Tom Krol: There you go, it’s out of the box now. But you guys, I just want to let you know that Jason is the real deal. He’s worth checking out. And I just want to encourage you that, and I’m sure Jason would agree with this, one of the reasons why this individual is a wealthy guy that you should know, and follow, and listen to, is because he’s a Go-Giver, he’s not getting any benefit of telling us this information. He’s a Go-Giver. When you have an abundance mindset, you become this type of an individual. So check him out, follow him. He’s a great guy to share this information with us, and I am really looking forward to implementing what you have taught today. So thank you very much for that share.
Before I let you go though, Jason, let me ask you this. Anybody who’s just starting out, a resource, a book, an inspiration, something that’s kind of helped you along in life that you want to share with some of our people? This is really for the people who are just kind of starting out, they’re just getting going, they might be hitting some hurdles. Any words of wisdom or a resource that they can check out?

Jason Bible: I can tell you two of my favorite books, and it depends on if you’re a left brain or right brain person, this kind of covers both of them. Think and Grow Rich from Napoleon Hill, you need to read that every year.

Tom Krol: Right.

Jason Bible: You’ve got to read it every single year because every time you read it, at least every 12 months, you’re going to realize something else in there. And if you read Think and Grow Rich, there’s some spooky stuff in there, like the infinite intelligence and tapping in to all that, and the first time you read it you’re like, “Oh, this is a bunch of nonsense, it doesn’t work.” Right?

Tom Krol: Right.

Jason Bible: And then you start to realize, actually it does. It’s really strange. And then, I would read The Millionaire Mind. It’s Dr. ,Stanley who wrote The Millionaire Next Door. He spends more time in the statistics of millionaires and it’s called The Millionaire Mind.

Tom Krol: Right.

Jason Bible: And that book is great, because becoming wealthy is actually pretty easy. All you’ve got to do is exactly what wealthy people do.

Tom Krol: Absolutely.

Jason Bible: That’s it.

Tom Krol: That’s it.

Jason Bible: You don’t have to reinvent the wheel here. I mean, you’re doing the same thing in Port Saint Lucy, we’re doing Houston, Texas. It’s the exact same thing.

Tom Krol: Right.

Jason Bible: So, why do you have to go and reinvent the wheel? Just learn what they’re doing, and then just do it. And I’ll tell you, if there’s one thing you do, maybe this last piece of advice, don’t listen to people that don’t matter.

Tom Krol: Right.

Jason Bible: I used to get all the time, when we first started out doing coaching with students, they’re like, “Oh, well I read on this blog about doing X, Y, and Z.” And then, I would explain to them why it doesn’t work. And now, I just tell our students, “Look, do they buy 150 houses a year?”

Tom Krol: Right.

Jason Bible: It’s real simple. Who knows what they’re talking about and who doesn’t? And it’s the people who are in this business like you and I, that are doing it every single day. That’s the advice that matters. But all too often real estate investors, or new real estate investors, take all this advice, all this free stuff on real estate forums or what, and it’s like, man, just shortcut the approach. Find somebody that has the results that you want, write them a check and go do it. And implement, and implement, and implement. And-

Tom Krol: I love it.

Jason Bible: Pretty soon you’ll have this huge business with 2 or 300 houses a year. I’ll tell you this, I can tell how successful someone is going to be based on the activities they undertake in their first 12 weeks.

Tom Krol: Right.

Jason Bible: It’s so easy to tell.

Tom Krol: I totally agree with that. I think that we can tell what they’re going to do based on what they did 90 days ago, something we always say. And additionally, I have seen some people, they come in and they maybe have the wrong mindset, and they’ve changed. But for the most part if you took, for instance, our top 100 students and you lined them up and you said, what are some of the common threads? They get out of the gate and it’s progress, not perfection. The guys and girls who make the most results the fastest, there is no success or failure, just the most results of trying to copy what we do and then failing, and then failing, and getting a result. Those are the ones who, right out of the gate, are making 20, 40, 60, 80, even 100 dollars a month consistently. Consistently.
So, I totally agree. And those two books, you guys, definitely those two books are world famous in our circles, and it’s definitely, if you haven’t read Think and Grow Rich, especially for me is a game changer. And, The Millionaire Mindset, I think I read The Millionaire Next Door. Is that his other book?

Jason Bible: Yep.

Tom Krol: Okay.

Jason Bible: That’s his other book. So, he wrote The Millionaire Next Door, The Millionaire Women or Millionaire Woman. So, there’s a ladies’ version that talks about just millionaire women.

Tom Krol: Okay.

Jason Bible: And then he wrote The Millionaire Next Door Revisited, which was 2008 after the big real estate crash, and his sequel to all those is essentially The Millionaire Mind. And it’s fantastic, it’s got a lot more stats in it, so for those of you who are a little more right brained, will enjoy it.

Tom Krol: Jason, I literally can’t thank you enough. It’s been a blessing having you on the show. You are certainly a Go-Giver, and a man that we all should take a look at and follow, especially in business here. This is awesome. I’m excited to check out your show and I know our tribe is too. So you guys, again, if you haven’t written down the name, it’s rightpathrealestate.com. Check them out on Facebook Live, iHeartRadio, iTunes, YouTube. I mean, you literally can’t miss them [inaudible 00:23:50], there’s even a Facebook page. So, it’s going to be an awesome adventure he’ll take you on, I’m sure.
So, I am excited to do that myself, and I’m excited to implement this billboard strategy. And when I say I’m going to do it, you can be guaranteed it’s going to happen. So Jason, thank you very much for your time today, brother. I really, really appreciate that.

Jason Bible: You bet. Thank you so much for having me on the show.

Tom Krol: All right, man. We’ll talk to you soon. Have a great day.

Jason Bible: All right.

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