Posted on: January 02, 2020
WI 339 | Cold Calling Vs. Radio

 

Are you running a lucrative business at the expense of your freedom? The good thing is you don’t have to! If truth be told, it is possible to run a thriving business that serves you so you’ll have complete control over your time. Today’s guest will show you how!

Chris Arnold runs a very successful multifaceted virtual business that generates over 300 transactions annually. While the success of his wholesaling business can be attributed to a lot of factors, he gives the marketing channel he uses some massive credit.

If you want to run a high-volume and highly rewarding wholesaling business that gives you the freedom to pursue your passions and live your dream life, today’s episode is for you!

RESOURCES:

Marketing Showdown – Cold Calling Vs. Radio

Episode Transcription

When it comes to generating leads and getting deals from wholesaling, there are only three ways. The first way is by traditional marketing, and we’re going to talk about that. The second way is by prospecting, being proactive, going out every single day, and talking to distressed property owners. The third way is getting referrals.

This is huge because you know that I am the prospecting guy. I am the guy that I want you to be proactive. I want you out there using your time, skills, and talents to go out and get deals. We’re going to look at the flip side of this and the power of marketing for your business. That leads me to introduce one of my great friends. He does business in Dallas, but he lives in Tulum, Mexico. This is going to blow your mind. It is Mr. Chris Arnold. Chris, say hello.

It’s good to be hanging out as always.

It’s good to have you on here. This is exciting. I’m going to tell you guys, right off the bat, I’m excited about this interview because Chris has decided to become a Wholesaling Inc coach. This is absolutely bananas. He’s going to explain to you what he’s coaching and the way that he does so much business. Chris, let everybody know who maybe haven’t known your story or don’t know much about you. Who are you? Where are you living? How has your life led you to be living on the beach in Tulum, Mexico?

I’ve been doing real estate for many years and I’ve done a little bit of everything in real estate. You know how it is. You start in one place, which I did with a brokerage, move over into fix and flip, wholesale, and start a mastermind in education. It becomes a mixture of wanting to get involved in all aspects of real estate because it’s interesting. It’s a lot of fun. After doing it for years, you get to a place of learning some things that you feel are valuable to share.

One of the things I’m excited to talk about is the marketing channel that we’re going to discuss. We call it a marketing channel that everyone knows about but nobody is using. How do I get down to Tulum? I’m a big guy that wants to be able to set up businesses that bother me as little as possible. My drive has always been about freedom. I feel like our businesses should serve us, and we shouldn’t serve our businesses. Because I have an incredible team and a lot of great coaches around me, I’ve been able to elevate out of the day-to-day. That allowed me to fulfill my dream of living in the Caribbean. I want to finish my work day and go down to the beach. That’s my ideal and perfect day.

This is incredible because we all watch the videos. We all have these thoughts in our minds. We all have this idea that the goal is to be a laptop on the beach, read a book on the beach, have an open schedule, be able to enjoy ourselves, and be somewhere beautiful, but nobody lives that life. You live that life. You’re a real example of somebody that lives that lifestyle. It’s very shocking to a lot of people that you can achieve this. You can get to the point where you build up your business to where it truly is running without you.

If someone asks how I get to that point and where I start, it starts with the choice. You’re going to make a choice at the beginning about where you want to end up. If you make a decision and draw a line in the sand that eventually, “I’m going to elevate out of this business. It’s the reason that I’m building it,” versus someone who goes, “I want to build this empire and be king of it.” You’re going to be in two different worlds. You can be king, but you’re going to be busy. You’re going to be a slave to that business, or you can step to a place where you put other people in place, other kings to run it for you so that you get that freedom. It starts with a choice. It’s all about intentionality. We know that.

You were telling me years ago you knew you wanted to end up where you’re at now, and you set it up that way years ago, or has this been an evolution in your business life or in your life?

Do not find yourself as a real estate investor because you will get stuck within that identity. You’re more than that. You’re an entrepreneur. You’re a business owner. You’re not in the property business. You’re in the people business.

It started that way because it was the reason I built a business. For me, it was a vehicle. Real estate is not my number one passion. People are my passion. I love things to do with ministry, charity, and those types of things. From the very beginning, I viewed real estate as not my identity but the vehicle that allowed me to be more of who I wanted to be, and that’s getting into social entrepreneurship and impacting the world. It’s the way I viewed it.

It’s interesting that you say that real estate isn’t your passion. People are truly your passion. That’s powerful because when it comes to wholesaling real estate, it’s not real estate investing. We’re not buying these properties and holding them for a long time that a traditional real estate investor would do. What we’re doing is we’re literally getting in between a distressed property owner and a cash buyer, and we’re solving both of their problems. We’re solving the problem of this distressed property owner that has this burden of this property.

We’re matching them up with people that are either building their portfolios, looking for a place to live in a specific area but want to buy it at a discount, or they’re fixing and flipping these properties. They don’t want to do the marketing, the prospecting or build up the referral base to be able to support that to be able to consistently get the deals that they need to be real estate investors or real estate flippers. It’s interesting when we’re looking at this because I always thought, “I’m a real estate investor. I’m doing all this wholesaling.”

Do not find yourself as a real estate investor because you will get stuck within that identity. You’re more than that. You’re an entrepreneur and a business owner. You’re not in the property business. You’re in the people business. You have to understand that there’s a distinction between the two when you run one a certain way and understand what you are. I definitely encourage people to understand you’ve got to elevate above the mindset of just being an investor.

You, like me, we’re very similar in this and you’re forced to be this way but I like using the profits from the wholesaling business to buy property. That’s when I become an investor. We like buying them in cash. You have to in Mexico, but we buy property.

Wholesaling leads to something. It’s wholesaling to build a portfolio, a coaching program that impacts people’s lives and builds a particular lifestyle. It doesn’t cap on wholesaling. It’s meant to be something that catalyzes you into something else. That’s important to understand from the very beginning.

Let’s talk about your number one channel, your mark of genius. This is interesting because literally, I don’t know anybody else that is doing it as well as effective as you and for as long as you have with the success that you have. Let’s talk about this beautiful marketing channel called radio.

It is the marketing channel that everybody knows about but nobody is doing. Think about everyone that you know that’s out in the market doing deals and say, “How many people I know doing direct mail or ringless voicemail, etc.,” and all those things are great? Ask yourself, “Who do I know that’s utilizing the vehicle or the channel of radio to generate deals?” You’re probably not going to be able to come across anyone off the top of your head because nobody has taken something like radio and then utilized it to find distressed properties for sale. It’s wide open. There’s virtually no competition.

When did you start investigating and experimenting with putting a budget towards radio?

WI 339 | Cold Calling Vs. Radio

Cold Calling Vs. Radio: It really starts with the choice. You’re going to make a choice at the beginning about where you want to end up.

 

Since 2011. We’ve been doing it a long time. We kicked it off obviously with direct mail. That was the thing that got us off the ground, but we wanted to be able to have multiple channels of marketing. You never want to put your eggs in one market basket. From the very beginning, we kicked off and got radio up and going, which was key for us. We’ve definitely been doing it now for nine years.

In those years, have you seen a big difference? Are less people doing it now or more people doing it now? Has nobody done it in the last years?

It’s not picked up. It’s I want it. It’s been there. Those of us and my friends that utilize it from the top guys around the country sit back and scratch our heads a little bit about why has it been going on this long and nobody has picked it up? For a lot of people, it’s just a black hole. The first thing I think when I think about radio, people go, “It’s not affordable. I’ve got to spend thousands of dollars on radio.” You can pick up the 60-second spot for as little as $10 to $15 for an ad. Most people don’t realize that. That’s one of the things that pushes people away from it because they automatically assume, “I can’t afford it.” It’s not true. It was one of the things we started with.

$10 to $15 in major markets?

Absolutely, depending on the station. There are stations that are more expensive. If you’re going to go after KISS FM, it’s got a million listeners. It’s going to take you more than that. What I would tell you is the station that you’re going after primarily. Let’s use an example. Your avatar might be over the age of 50. What genre station is someone over the age of 50 going to listen to? They’re going to listen to classic rock or talk radio. If you’re doing talk radio on an AM station, those cubes are not very high. There are radio stations like that are a lot less expensive. One-tenth of the cost, let’s say, of KISS FM. People don’t realize it, but it fits your avatar. Are people over the age of 50 listening to contemporary music like Taylor Swift? Probably not.

As you’re talking, through my head, I’m thinking about all the sellers that I sat down with. Eighty-five percent except for the people and from a death in the family, they inherited through probate or a will or whatever else, it’s almost exclusively people over 60 years old. I’m literally going through this in my head and thinking, “They don’t listen to Spotify.”

They don’t. How many people listen to the radio? Aren’t they all listening to Spotify or Pandora? I said not if they’re over the age of 50. They still turn on the radio.

My parents still turn on the radio. They have the XM, but they don’t care. They just set in their routine of turning on 3 or 4 channels on either FM or AM. It’s crazy. Let me throw some questions at you that I think maybe the audience is thinking. To do a radio ad, don’t you have to hire a professional ad person to do the actual ad? How do you know what to say, how long, and all these things?

When it comes to recording an ad, you can do it two ways. You can record it yourself, which is what I do. I recorded here from Mexico. I have a mic, I go into my bedroom, and I put up a couple of pillows in the backdrop. My wife turns it on and I literally record my ads from my bedroom in Mexico and send them back to my team. We’re talking about a mic that I bought. That’s it, and they worked fine, or stations will record them for you. That’s part of the package they provide. They don’t charge anything additional. You listen to the radio. All the people that are doing the commercials and have that radio-type voice, they will get in and allow you to utilize one of those voices. They will record it for you with no additional costs.

Radio, the marketing channel that everybody knows about, but nobody’s doing.

You got to watch this because it’s so much better watching on video. Go to Brent Daniel – Real Estate Coach on YouTube but if you guys are reading this and you’re thinking to yourself, “I’ve always wanted to do radio but nobody has explained it right.” You need to set up a call because Chris’s program is going to teach you everything. Am I pushing it? Yes, because if you’re a specific person that is considering doing radio, where else are you going to look? You’ve got to go set up a call at WholesalingInc.com/REIRadio. Check out the page and see what it’s about. Literally, you walk through all these things. You walk through which stations, what to say, how to record it, and all these things.

We did the entire blueprint at this point, and that’s an important thing. The key is the negotiation strategy. One thing I can tell you about radio is it’s like buying a house. The win is all and the purchase and what you buy it for. It’s exactly the same. A lot of people that I’ve seen try to use radio and fail is because they didn’t understand the negotiation tactics that are involved. That’s the secret sauce of what we’re providing.

You’ve got a radio ad out and somebody hears it. The people that are calling in. Who are these people that are calling you off of a radio ad? What is a typical call like?

The one thing I love about radio is it’s one of the highest quality leads that we’ve been able to generate outside of a referral. Let’s utilize direct mail. Direct mail is great, but we know that more than half of those calls are people calling in frustrating and complaining because they feel like you spammed their mailbox. It’s tough. When someone is riding down the road, they pick up the phone and call you, they’re not calling to tell you to stop advertising on the radio. They’re motivated and ready to talk about their house.

What I love is the call volume is not as high as direct mail. It’s easier to manage and the quality that’s coming in are people that you want to talk to. For the most part, you’re not getting a lot of the tire kickers that you see with the other lead generation pieces. It’s the best step quality lead that we’ve been able to generate. If you were to line up my acquisition managers and look at all of our lead sources and they were to tell you which one they want to assign to them, it’s always going to be the radio lead. It’s Glengarry Glen Ross. It’s the gold lead that they want, the best that we’ve produced.

You make such a great point. These aren’t people that are sitting there holding your phone number there on a piece of mail. It’s somebody that heard it, wrote down the number somehow, and called you. There’s intention there.

They’re calling me right on the road. They’re dialing in a lot of times while they’re driving and having a conversation with you. This is why answering these calls live is important because the quality is that you do not send the calls to voice mail. You take them live.

If somebody is starting out and they don’t have a ton of money, what can you start this campaign out with a month realistically to get some momentum and leads churning? I’m not necessarily saying that they’re going to close these leads, and these leads are going to be perfect laydowns. What’s a good budget that should be expected to start with?

I recommend starting out about $1,000 to $2,000 a month on the radio. You can get in at about $1,000. $2,000 is a little bit right in that range or $1,500. It depends on your market. If you’re in the mid-size or smaller market, it’s going to be very inexpensive for you to be able to do it. A good rule of thumb is about $1,000 to $2,000 to kick it off. Most people are spending that, if not more, on direct mail.

WI 339 | Cold Calling Vs. Radio

Cold Calling Vs. Radio: One thing I can tell you about radio, it’s like buying a house. The win is all in the purchase and what you buy it for.

 

The other flip side of it is you can scale it up, which is equally as important. When I look at a lead generation piece, I want to know that I’m not going to hit the ceiling at X amount of thousands of dollars, and then that’s it. We can’t spend any more because we’ve saturated. The good thing about radio is it’s inexpensive to start, and then if you want to scale it up and spend tens of thousands of dollars in your market, let’s say you’re a more seasoned investor listing, you have the ability to scale it up as well. I like that it’s got that range there.

We have these discussions because I’m a prospect, proactive, hire people, get them going, all this, and you’re like, “I want to market and have these things.”

Let me contrast it. I believe in outbound prospecting. It is the way I started my business. I woke up every day on the agency side calling expired’s and FSBOs. You better believe it’s what allowed me to grow my business. It’s good to have outbound, but I can tell you, something like radio, which is great about it, it’s what’s called Reverse Prospecting. That is, you’re only talking to people who reached out to you first so everything is in now. All you have to do is answer the phone. You put your budget up, let the radio play, wait for the phone to ring, and you answer. It’s definitely a much easier process to manage than some of the more complex things out there like direct mail.

The thing that I love, Chris, and this is something that I’ve been thinking and I’m definitely implementing the radio strategy without a doubt, I’m telling you and everybody in the whole world, definitely taking your strategy and implementing it into my business. I’ve already talked to the team about it because this is the reason why. When you are phone prospecting, texting, voicemail dropping, and mailing, it is list dependent. You had to go after distressed properties. It works. You can get your first deals or your first 1,000 deals going list-dependent.

There is something magical. This falls along the lines of pay-per-click. It goes out to the masses and the people that put in the time to put something into pay-per-click or to call you on the radio are not list-dependent. This is literally marketing, people that probably would have never reached out, maybe they don’t answer their phone, they don’t have a phone number attached to the property, they don’t get mail there, or whatever, but they’re in distress. It is also from traditional brainwashing of, “If you hear something on the radio or on the web, it must be a legit company.” I’m going to go with somebody that has some credibility.

One of the things I’m grateful for that we had radio for is my experience in the Dallas Fort Worth market where we’re at is we had the direct mail decline of 2018. Our dollar-per-dollar return started dropping because the direct mail competition started. That means when you would go to somebody’s house and see the stack of codes. Everyone was fighting over those lists and trying to refine those lists. Having a marketing channel that had no competition was something that helped us go through that transition and process of a little bit of the decline of direct mail because everyone was on that bandwagon. It got saturated and this one didn’t. That’s one of the reasons as well as we launched it, we’re doing exclusivity per market because we do not want to happen in radio what happened in direct mail.

It’s interesting, especially for people that are reading this. They’ve got a team. They’ve got things set up. They’re looking for that right spot. The sweet spot of lead generation is like a moving target in our business. I always feel like the fundamentals are always having quality conversations with distressed property owners 100%. That is what it is. I always will go, if you’re starting out, you’re getting going, or building your business, you’ve got to be proactive like Chris was saying. Not everybody has a $1,000 or $2,000 budget, but if you do and you know that you can answer those calls live and tap into this resource that nobody else is using, this feels like a no-brainer to me. I’m excited to get going and test it out.

I’d love to share two other ancillary benefits that people don’t realize that you get with a radio that you don’t get with others. The first one is instant credibility. If somebody hears you on the radio, you must be an expert and know what you’re talking about because you’re on the radio. That will elevate you above the other wholesaling competition within your city. The second thing is celebrity status. If you’re doing some of these other types of marketing, a lot of times, you might not even put your business company on there.

I was laughing with Tom Krol. We said, “I would never put my business company’s name on a bandit sign.” You’re not going to be able to build it. When you start to do radio, it’s going to give you yourself as an individual and your company’s celebrity status. That is powerful because we know that psychologically something happens in our brain when someone is on television or on the radio. It’s why we have movie stars and why people are famous and you can have that residual effect for yourself and for your company. It’s a cool thing about radio.

If you’re in an area that’s competitive, radio is for you.

It’s a system. You have your ad and budget. It gets going. As long as you’re answering those calls coming in, you can then hire somebody to answer those calls like you have. You’re not answering these calls. You’re sitting in beautiful Tulum, Mexico. If you’ve never seen Tulum, Mexico because I didn’t know where it was, Google it. It is paradise. That’s always what’s impressed me about your business because one, you’re in DFW, which is a huge market, but ultra-competitive like Phoenix. You have been able to remove yourself completely from the country and run this business effectively. You don’t have to be exact. I’m not going to hold your feet to the flames here, but can you give me a ballpark on how many deals you think have come from radio since you’ve started?

I could probably break it down and tell you that we will finish out 2019 right about 70 deals closed off of radio on that channel. It’s our number one. It used to be direct mail, then radio here, and then it is shifted. A good chunk of our budget now goes towards radio.

I would assume that the volume of calls coming in isn’t ridiculously overwhelming. It’s very manageable for somebody, even if they’re full-time or part-time in this business. If you can answer those calls live, you should be able to get them.

It’s very manageable. When we were running direct mail at its ultimate peak and we were sending out a lot of direct mail, the call volume was insane. We had days where our VAs that were taking those calls would be in tears because it was back-to-back, plus they’re getting yelled back-to-back. With radio, you can do a large budget and the call volume is very manageable. It’s pretty set it and forget it. You got to do some station rotation here and there. Once you’ve got it up and going, you just let them play and you answer the calls as they come in, which are very manageable.

Who do you think would bring the most value? You had talked about the word avatar before. If you’re talking about the perfect person that’s reading this, what does their business look like? What do you think that this person is thinking and the philosophy that they have about their business to implement this training program?

There are a few things. Number one, if you’re in an area that’s competitive, this is for you. That’s what happened to me in DFW. I’m that avatar. This fawns from the competition, which is a challenge. Number two, it’s for someone that’s ready to begin the marketing journey. Let’s say that you are doing outbound prospecting or you’ve got some deal flow coming in and you’re ready for that next little layer. You’re looking at 2020. What are we going to do? What’s going to be our first marketing stream because everyone’s always thinking about it? This is for you because you can start with it. It’s affordable for the person out there who looks at this business and wants to run it from the standpoint of running it smartly.

I don’t want to be pulled in, building lists all day, and running here and there to get them and tweaking this. You look at business and you’re all about streamlining, simplicity, and efficiency. When I look at a lead generation piece, I want to know how complex and how much work is this going to create in my organization because there are some that are great, but they require a lot of work. There are others like a radio which gives you freedom. Most of us entrepreneurs are ultimately looking for that freedom in our lives and our businesses, and not be slaves.

You plug right into it. You’ve got it outlaid so that it’s just a step-by-step process, and then people have leads coming in.

It is the whole blueprint. It’s A to Z. It’s not complicated to set up a radio. There are things that you have to know to be successful at it. That’s what we’re teaching, but getting in from the list standpoint, it is not a heavy lift to get the radio up and going.

WI 339 | Cold Calling Vs. Radio

Cold Calling Vs. Radio: What’s great about something like radio is what’s called reverse prospecting. You’re only talking to people who actually reach out to you first.

 

Especially with people that are in those competitive markets that are doing a ton of deals, but they’re seeing their profit margin shrink because the marketing costs are going up. I love it. I think that this is going to be absolutely bananas. I’m going to do one of these for you for those 70 deals. Why don’t you tell everybody where to find it?

Go to a WholesalingInc.com/REIRadio. You can see a video that talks more about it, you can book a call to ask questions, and learn more if you’re curious. It’s all about getting in and doing due diligence and seeing if it’s the right fit for you.

If something sparked in your brain, get there and do it now. Check out, have that conversation, and see if it’s the right fit. I’m excited to have you around. Chris runs, I would consider, the very top mastermind in the country out of Tulum once a year called The Multipliers Mastermind. It’s talking about stretching up in a group of people. It is unbelievable.

Thank you for that, Chris. Your friendship means a ton to me. I’m excited that you’re a part of this. I know that from me and Tom Krol’s perspective, we get a lot of people that are interested in a certain coaching program and ideas. The number one thing comes down to bringing the absolute most value to the student as possible to our tribe as possible. I’m just thrilled to have you on because you check all the boxes. You’re the best. I really appreciate it.

I enjoyed it. It’s always fun hanging out with you. We’re always having a good time, always laughing and smiling because I love your energy. It pumps me up.

Chris, you’re the best. Good luck with all these people that are going to be coming your way because you’re going to help out a lot of people. I’m excited for you.

Thanks so much.

See you, guys.

 

Important Links

 

About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low-cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, and “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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