Posted on: February 05, 2020

Ever wonder what it takes to become an authority in the wholesaling market? Understandably, becoming an authority will require some level of experience and expertise. However, even if you lack both, you’d be glad to know there is a marketing medium that can help you become an instant authority in your market: radio marketing!

Today’s guest is no stranger to advertising on the radio. In fact, he’s been doing it for almost a decade now. Chris Arnold is the founder of Arnold Elite Realty, a cutting-edge boutique brokerage and the co-founder of COSA Investments, one of the largest wholesale firms in the DFW Metroplex. For many years now, Chris has been running a lucrative wholesaling business virtually while living his best life in Tulum, Mexico!

If you’d like to know why radio marketing has been getting quite a lot of buzz lately, don’t forget to tune in to today’s episode. Chris not only discussed all the basics of this “set it and forget it” marketing medium, he also covered some of the peerless benefits it offers. If you want to know how you can use radio to build authority and get ahead of the pack, this episode is for you!

Key Takeaways

  • Why he has grown to love radio marketing so much
  • The interesting thing about radio marketing
  • Why radio is not list dependent
  • What radio offers that other marketing channels can’t
  • What the primary challenge is when advertising on the radio
  • Radio marketing’s secret sauce
  • Timeframe for radio marketing
  • What reverse prospecting is and why it’s one of the easiest leads to convert
  • What people’s most common assumptions about radio marketing are
  • What it looks like when you advertise on the radio
  • What he wants people to understand about radio
  • The unique thing only radio can provide

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

Subscribe to Wholesaling Inc

Episode Transcription

Cody Hofhine:
Hey guys, this is Cody Hofhine. I’ll be hosting today’s episode and I’m super excited to be with you guys for those that are watching right now, those that are listening First of all, we’ve got a rock star with us and we do this every single show. This is nothing new, but what I want you to do is we’re going to be talking about wholesaling. Now, you guys know us for wholesaling and we’re going to deep dive this. Wholesaling is just simply the art of finding deeply discounted properties. Now, if you know how to do this in your market over and over again. My friend, that is how you can make a lot of money in real estate. We’re going to be talking about one of the marketing channels that is getting a lot of attention, getting a lot of buzz.

Cody Hofhine:
So, we have with us today, Chris Arnold. Here’s how cool this is. You guys want to see lifestyle like when everyone’s like, “Oh, man, I want to get into real estate so I can live this lifestyle.” This guy’s got it figured out Chris Arnold in Tulum, Mexico. Chris, what is the temperature down there by the way?

Chris Arnold:
Today it’s probably about 76, 77.

Cody Hofhine:
Oh, I hate to so bad. Right now, it is freezing in Salt Lake City. We woke up to like 26 degrees, and I’m still cold. I’m sitting here with like goosebumps going on the back of my arms and he’s over here. I was like,” Hey, what’s your lighting? Your lighting looks so good.” He’s like, “Yeah, that’s just the light coming in from the windows from the beach.” I’m like, “You dog. Get out here.”

Cody Hofhine:
So, we’re going to break down a marketing channel, but Chris, before we break down the marketing channel, give us a little background about yourself. What got you into wholesaling in general? Tell us a little about your background and how it’s also led you to live this lifestyle of being able to do it virtually and live in Tulum, Mexico. So, I’m assuming you’re not down there, wholesaling the pyramids and all the stuff down there. What is it, the ruins?

Chris Arnold:
Great idea, though. I love it.

Cody Hofhine:
Let’s break it down for them. Help us understand a little bit more about you, so the listeners can really understand who you are and what you do.

Chris Arnold:
Yeah, so I’ve been in real estate now for 15 years, just hit it in 20 point if you can believe that. So, actually, I initially started on the brokerage side. So, that’s how I got my feet wet. I know that I want it to go into investment eventually but started off with brokerage. Got my license, built up the brokerage. After that, was at a place where it was running, it was time to hop into investment. So, I actually started fixing and flipping first before I was wholesaling. As we tried to scale that up, man, ran into some challenges. If you’re doing a lot of fix and flips, there’s a lot of systems that go into that. As the old saying goes, I rather take a fast nickel than a slow dime.

Cody Hofhine:
Sure.

Chris Arnold:
That’s really what wholesaling is. So, about five, six years ago that we really started ramping up the wholesale side. Definitely, just such a key part of the businesses that we have set up. I love it.

Cody Hofhine:
That means you’re doing it back in 2005. Did you get caught in any of the 2008, 2009, 2010 crash and did it affect you? [inaudible 00:04:09].

Chris Arnold:
When I got caught, I was on the brokerage side. That’s when you had to move over to short sells in REI if you remember that.

Cody Hofhine:
Yes.

Chris Arnold:
We had to do a complete shift. Luckily during those years, I hadn’t got into fix and flip yet. When we did start, it was kind of around that 2010. I can remember some people still really nervous about the fact that we’re willing to jump in and get in and fix and flip properties.

Cody Hofhine:
Yeah, fix and flip can be a beast. Just the background, just real quick before we get into this is, I got involved in wholesaling in 2015. It wasn’t for like three years that I’d even dare. I went through all through 2015, all through 2016, and 2017, we finally picked on. It was like a home run and one that you put some carpet and paint in. It wasn’t like a full-on flood rehab, but it took us a while. There’s an art to it. There’s a way to expose your company if you don’t do it right, and especially who knows what’s the economy’s doing and all that stuff. So, you have a great background in fix and flip.

Cody Hofhine:
Now let’s really talk about some key things, the nuts and bolts, we start to get to understand you. Everyone knows us, Wholesaling Inc is like man, it’s still going, it’s still active, it’s going strong. But what’s beautiful is there’s a point where everyone is trying to scale. They’re trying to get their business to the next level. Even with my own business, we’re always looking for ways to grow it. How do we strategically do it? What is the next marketing challenge we bring on? We try to do it methodically, strategically.

Cody Hofhine:
So, we’re not bringing on like 10 marketing channels at once, and then suck at all 10 of them. But this is one that we’re going to cover today is one that we’re really, really excited about and one to really grow into for 2020. So, let’s break the news. What is the marketing channel we’re going to break down today for them?

Chris Arnold:
We’re going to talk about radio, tried and true-

Cody Hofhine:
Radio? Who listens to radio, Chris?

Chris Arnold:
… radio. Your target audience does. So, that’s the first thing I laugh about. People go, “Well-

Cody Hofhine:
I don’t listen to radio.

Chris Arnold:
… Spotify, right? Pandora. And then I have to remind people, you are not your target audience. You are not your demographic. Your demographic is primarily over the age of 50, and they do not have Spotify.

Cody Hofhine:
That’s right. We’re going to bring out a piece of paper and a pen and get ready to jot down gold nuggets. There’s going to be plenty shared during this. So, I always strive to make sure our listeners don’t just feel good from listening to this, but they actually see some items here to take action on. So, you’re right, you’re dead right. I remember the first time you told me ‘radio’. I sat there I’m like, “This guy’s nuts.” Like this guy’s nuts. Who’s going to listen… I don’t listen to the radio and you’re right. I’m not looking for Cody Hofhine. My target audience is not Cody Hofhine. So, what is that about radio? How long have you been doing it, I guess to start off now?

Chris Arnold:
I’ve been doing radio for nine years. Do you believe that?

Cody Hofhine:
[crosstalk 00:06:55]. That’s so incredible.

Chris Arnold:
The reason we’ve been able to keep it for so long… I’ve had other traditional marketing pieces gone up and down on me, right? Could rely on for a period of time, they get saturated, your ROI would drop on that. But the thing about radio and why I’ve grown to love it so much in my company has, is because we can rely on it. It’s just been consistent and steady. It’s the reason that we’ve done it for nine years.

Chris Arnold:
For us, when direct mail got really challenging in 2018 in DFW, that’s when you would walk into someone’s house and they’d have a stack of like 40, 50 postcards. And then we go, “Man, everyone’s on this bandwagon.” The thing that we loved about radio is that just didn’t happen, because there’s virtually no competition. Radio has been around forever, but the utilization of radio to find discounted properties is still untouched. It’s wide open. Nobody uses it for that purpose.

Cody Hofhine:
It’s brilliant. In my head, I’m thinking a couple things. First and foremost, I love how you can kind of differentiate yourself. If you came over to see our process, we’re all about how do you do it? How do we differentiate ourselves from all others? Like when we’re out there, what are we doing different because everyone’s receiving the postcard. Everyone’s receiving the same message. So, what are we doing over and above? What’s unique is radio plays… Much like I said, when you first said this, I’m like, “Radio, that’s interesting. I don’t know if I’d invest in radio.”

Cody Hofhine:
Here we are talking radio, because I think the concept is so brilliant, but you’ve got the numbers behind it, you’ve got the strategy behind it, you’ve got all the success behind it. That allowed me to see “Why Cody, you got to open your eyes up, brother.”

Cody Hofhine:
So, I’m thinking now the second part of this is I went to a jazz game with my boy one night, and we’re sitting there at the jazz game. I walk in and, first and foremost, Thurl Bailey, he was like x player for the jazz. He comes walking by and like “Thurl, brother, love to get a picture with my boy.” He’s like, “Yes.” He’s just a tower of a guy, just super calm, and then I go walk around the corner, and I see two attorneys. The only reason I actually think these guys are something is because I hear their jingle like every single time. Like while we’re watching jazz game at home, they’re every commercial. But more importantly, whenever you’re in a car, their ad comes up on every channel. I don’t even have to say their phone number.

Cody Hofhine:
Like if I ever gotten a car accident, just because of speed and convenience, I already know who I’m calling because I know their phone number. I wouldn’t have to look it up. I wouldn’t have to get online. So, I’m sitting here looking at like, what could there be for? Do you see those same results? Because when I saw him at the jazz game, I literally said to my boy “Who could give two craps less who attorneys are?” He’s sitting there and I’m like, “Dude, that’s so and so.” I said the name and he’s all, “Oh, yeah, who’s that?” I’m like, “Bro, those are the ones we hear on the radio all the time. That’s them.” He’s all, “Oh, really,” but it was funny is they’re just two human beings. But to me, they almost felt like a little like celebrity, almost.

Chris Arnold:
Absolutely. So, you hit on the right word. The interesting thing about radio is it’s like television, it creates celebrity status. We know that psychologically for us, if we see someone on radio or television, I mean, that’s why we have movie stars, right?

Cody Hofhine:
Sure.

Chris Arnold:
Where do this celebrity status come from? It primarily comes from those two venues. So, there’s something that happens in our mind when we hear someone on the radio. We go, “They must be a celebrity. They’re on there.” And then here’s the next thought that follows, which is really important about radio and that is if you’re on radio or television, then you must know what you’re doing. You must be an expert, and we call that instant credibility. Just people think if he’s on radio or she’s on radio, they have to be an expert.

Chris Arnold:
So, you get this really great combination of celebrity status, instant credibility. I’m going to tell you this, Cody, if you want to be ahead in your market, you’re competing against other wholesalers in the area. If you want to walk in with celebrity status over, let’s say, someone that used a traditional marketing source like direct mail or text blasts and so forth. Trust me, you’re ahead of the game before you even go down to sit in and pitch.

Cody Hofhine:
That’s awesome. So, there’s so much that is going through my head right now, right? This is like, question time. So, get ready for like deep dive in and help us further-

Chris Arnold:
Fire away, man.

Cody Hofhine:
Hey, there’s so much going in my head and my head, you’ll see I can’t keep up myself. So, I might lose some thoughts, but I’ll get back to it. But the one I want to think of is at Wholesaling Inc, we work with tons of students. We work with them nationwide. The common question I get, and we still show them how to pound through this and power through this. In my market. I know how to find every list I want. It’s like I know it because we’ve done it for so long. It’s like if you want to be the best, you got to become the expert.

Cody Hofhine:
So, you got to find the new ways to get all these new lists. But for many, there’s some states where they’re like, “Hey, that list doesn’t exist.” Sometimes you have to question like, are you just going weak on it, like you’re just not going hard at it? Or is there really not a list that exists for so many states? How does radio help fix that problem?

Chris Arnold:
Because it’s not list dependent. This is what creates saturation. Is it people really fighting over direct mail, fighting over ringless voicemail text blasts? No, that’s just a method. What everyone’s actually fighting over are the lists.

Cody Hofhine:
That’s right.

Chris Arnold:
That’s where the overlap happens. So, all of a sudden, you get into this battle of who can build the best list, and that becomes a high level of maintenance. It’s really a lot of work to get in and build the most niche list. People are like starting, again, has been calling around for a while, but layering list, right? What’s this, what’s this, plus this and that creates greater probability that they’re going to sell.

Cody Hofhine:
They’re stacking, yeah.

Chris Arnold:
It’s stacking those lists. Absolutely. When you advertise on radio, you’re hitting an entire audience that’s potentially not on people’s list.

Cody Hofhine:
This is what’s interesting. While you’re saying this, like everything you’re saying, these lightbulbs are going off like, “Yeah, yeah, this is true. Yup, this is true. Yup, this is true.” Like there’s not many people in Utah going on it. There’s not many people in probably many states doing radio. I mean, what’s your likelihood you actually even run into anyone?

Chris Arnold:
There’s virtually no competition. I know this with the students that we’ve helped. The one thing they’ll come in and they’ll say is, “The reason I decided to go on radio is because you asked the question, ‘Who am I market is on radio?’ I sat back for a sec. I thought about it. I realized there’s no one.” Yeah, and I hear that again and again. That’s what’s so interesting about this as long as radios been around, right? It’s something that everyone knows about, but no one is really utilizing it. Here’s the thing, Cody.

Chris Arnold:
If you want to succeed in any type of marketing, one of the best ways to do that is to go after something that doesn’t have competition. You can have a great marketing strategy, but if it’s oversaturated, it doesn’t matter how hard you work it. It’s just not going to present the ROI. But if you can get on to something that’s wide open with no competition, then your success rates going to go up tremendously. Without question, because you’re not competing.

Cody Hofhine:
That’s right. That’s right. That’s the beautiful. Here’s the other thing that I think that’s pretty cool, is the jingle, right? Going back to those two attorneys. Right now, I have no need for him, but one thing that’s branded on my head that I can’t get rid of, because it’s actually the easiest phone number that exists in the state of Utah. But when that time comes, I don’t have to wait for a postcard, or I don’t even have to go Google. In my head, I already know if I come across this situation, these people seem like they just get things done. I already remember the number.

Cody Hofhine:
So, when it comes to priority, like, “Oh, man, I just got an accident. Who should I call?” I don’t have to Google this. It’s already in my head who I’m going to call. They’ve already branded me, saying they’re the best in the industry. Do you see that even with you with real estate? Is that the same play?

Chris Arnold:
Without question. Here’s the way I’ll break it down. This is where you’ll really expand your understanding of this. So, let’s utilize direct mail and direct mail is great. You could be just crushing it right now. But I’ll say this, and I asked this question rhetorically, how many times are you going to send a postcard to a particular person on a list? Four, eight, 12 times, right? I mean, has anyone ever sent somebody a postcard 100 times? No, because you send someone a certain amount of times and then you move on, which means they forget about you. But that doesn’t happen on radio because of radio is consistently playing again and again, think of it like direct mail. It would literally be the idea of sending someone that direct mail for year after year after year. Of course, it brands you.

Chris Arnold:
To tell you one of my favorite stories to really hit on the point of what you’re making. We got a voicemail one day from a mom in her car driving, and she called in, and she left this voicemail for us. She said, “Hey, I listened to Classical…” We’re advertising on this classical station. She goes, “I love it. My kids are always in the backseat and I’m driving them around.” She goes, “I want you to know that my kids, when your ad comes on, they repeat it verbatim.” She said, “I thought it was just so funny. I wanted to call in and tell you guys you’re doing a great job.”

Chris Arnold:
They’re not even paying attention. They’re not listening to music, but it’s the fact that it’s played so much, that subconsciously it sets in, just like what you’re talking about with those two attorneys. You don’t get that with other traditional marketing pieces, not going to happen at that level.

Cody Hofhine:
Same thing I think about even like wedding rings, right? I know who I’m going for the wedding rings, like the guy is branded everywhere in Utah. I can tell you open Monday through Friday until 8:00, Saturday until 5:00, closed Sunday. I can tell you online at blah, blah, blah .com. I can tell you their phone number and tell you everything. Sure enough, I went through their office. I’m like, “Hey, where did you guys get your wedding rings?” It was like 60% came from that one that I just repeated right there, that ad, but it’s unique. I don’t know why I didn’t think about this sooner.

Cody Hofhine:
In my head, I’m thinking about this now. How easy is this process to implement? So here I am completely love marketing, I do it all the time. We’re heavy in so many different areas. Here’s a new area and now my mindset saying, “Oh man. Am I starting over again?” Is it going to be easy to implement and get going? How easy is that process?

Chris Arnold:
That’s what I love about radio. It’s low [inaudible 00:17:35]. The challenge is knowing how to set it up. The challenge is not get it set up, it’s setting it up in the right way. But in this [inaudible 00:17:44] compared to let’s say direct mail will utilize as an example because we did a ton of direct mail. It’s a pretty light lift. It’s not a super complicated thing to set up. When you look at direct mail, you’ve got to build lists. You got to tweak your postcards. You got to deal with the mail company. With radio, we like to call it and the best way to describe it, it’s just set it and forget it. You [inaudible 00:18:08], you had to play.

Cody Hofhine:
Dude, that’s the [crosstalk 00:18:10] thing. What’s that cooking thing that guy had grown up? The set it and forget it. Do you remember this or it’s just me?

Chris Arnold:
I don’t know if I remember that.

Cody Hofhine:
You don’t remember the infomercial where the guy’s like, “Set it and forget it”? He’s like, put a turkey inside this little cooking top thing. No?

Chris Arnold:
It’s funny. I remember Tom brought that out. So, your [crosstalk 00:18:27] have the same.

Cody Hofhine:
[crosstalk 00:18:28] brother. I’m hoping you’re going to be like, “Yeah, I do remember that guy. I bought three of them.” Alright, so set it and forget it. But how hard is it to implement? Like, are we talking, “Hey, I know this is something I wouldn’t want to learn on my own”? I mean, is that pretty coachable, pretty easily, say “Yeah, this is your script. This is how it goes. This is what you do”?

Chris Arnold:
Yeah, I mean, a lot of the setup is actually just administrative if you think about it, right? You’ve got to have the right script and go in and record your scripts. You’ve got to set up your play times with the radio station, right? Those type of things. I would say that about 80% of the process is simply administrative setup if you think about it. The only challenging part of radio is negotiating with the stations. That’s it.

Cody Hofhine:
Is that something you learn on your own? Or do you also have the techniques, strategies?

Chris Arnold:
No, man. See this is where I find people that set up, they’re not successful is this [inaudible 00:19:25]. I would say on average, most people are paying two to three times the amount for radio than we are. So, let me put it in the context of buying a house. Cody, we know that the most important thing you do in the entire investment process is buying house at the right price. If you get that right, every other domino for the most part will fall into place. If you get that wrong in the beginning, it doesn’t matter what you do on the backside, you’re probably not going to make a profit or potentially lose money. It’s the same thing with radio. If you buy it right in the beginning, everything falls into place.

Chris Arnold:
The challenge is most people, if you just reach out to a radio station, talk with the sales rep, you potentially think they’re your friend, they’re working on your behalf. No, they’re not. They’re working on behalf of the station. They’re going to oversell you, and they’re going to upsell you on a bunch of stuff that you don’t need. It’s amazing the amount of stuff that radio stations can sell you. It’s about getting rock bottom pricing. That if I could tell you anything is the secret sauce.

Cody Hofhine:
That’s unique no matter what state you’re in. It’s not like “Oh, I’m sitting here in Dallas-Fort Worth, and I know this market. So, now I do it.” It’s like [crosstalk 00:20:38]-

Chris Arnold:
They’re doing that all over the nation. They’re doing it all over the nation, absolutely. Big city to small city. I actually tell you, if you’re listening. If you’re in a small to mid-sized city, that’s actually even easier. One of the most competitive cities in the country for radio, which is Dallas-Fort Worth. You can Google it and see, right? Our stations are massive. We have huge players advertising. We still have all of our stations at rock bottom prices. So, if we can do it in Dallas Fort-Worth, you can pretty much do it anywhere in the country.

Cody Hofhine:
What does that look like on timeframe? We’re going to talk a couple things, so make sure I stay on track here. We’re going to talk about kind of like the ROI, the return the numbers, but what is it timeframe from the time that you said, “Hey, this is something I want to get into”? How long before it’s like up and going, but then how long before you start to see some traction and actually see some like leads coming in?

Chris Arnold:
Yeah, so getting it up and going, the only variable there is your negotiation skills, right? Now this comes down to human performance. So, if you can get in and you’re a good negotiator, let’s say from the time you started going, “Okay, I want to set up radio.” You can be up on radio within three to four weeks, everything set up.

Cody Hofhine:
Three to four weeks, it’s going and it’s [crosstalk 00:21:56].

Chris Arnold:
Yes, that is if you’re a great negotiator, you get in, and you know what you’re doing, right? If you struggle with that, or you kind of get into position of some bad sales reps in your areas and so forth, it can take longer than that. It can take a few months. So, that really is a variable depending on the person. For me, for instance, when I got in and set up my radio station, it took me five weeks to get mine up and going. I’m in Dallas-Fort Worth, it was competitive. So, I did get in there and grind it out, but it took me about five weeks to be able to do that. Now, here’s the interesting thing. You asked about, “Hey, when I turn on radio, like how long do I have to wait?” The actual highest call volume is within the first 90 days.

Cody Hofhine:
Really?

Chris Arnold:
Because the target audience has never heard this ad before. They’ve not heard this message. So, you get this massive spike, and then over time, it begins to get to a level of where it’s going to stay consistently. So, what I like about it is you’re doing deals right away, like you play, and then the first week, your phone is ringing. Again, let’s remind them. This is like all inbound. You’re playing an ad and all you have to do, Cody, is answer the phone. This is called reverse prospecting if you know that term. It’s the idea that you only are talking to people that have reached out to you, pick up the phone to call you. In my opinion that is obviously one of the easiest leads to convert versus chasing down someone that has never heard of you, right?

Cody Hofhine:
Hand down, hands down.

Chris Arnold:
[crosstalk 00:23:26].

Cody Hofhine:
Are you doing any other marketing channels by the way or just radio?

Chris Arnold:
No, we use several marketing channels.

Cody Hofhine:
Okay, okay. So, what we’re talking cost per conversion, money spent to how much before you get a contract. I mean, it’s not unheard of to hear $50, $500 cost per contract or cost per conversion. Is this one you see on a low end? Is it a high end? Where are you at on like when you know numbers when it says like cost per conversion? Are we paying little or are we paying a lot for those deals?

Chris Arnold:
Yeah, absolutely. So, I’ll give you my numbers for Dallas-Fort Worth. It obviously fluctuates from city to city, state to state, and then I’ll speak of some of the people that I’ve helped set it up and the numbers they’ve given me back.

Cody Hofhine:
Awesome.

Chris Arnold:
So, we have a very big budget on radio that we advertise on. So, anytime you’re doing something at a large level, your law of averages is going to come down to what it should truly be. So, for instance, if you just send out $2,000 worth of direct mail, of course, your ROI is going to be through the roof closing one deal. You just pay for that for the next year.

Cody Hofhine:
That’s right.

Chris Arnold:
In Dallas-Fort Worth for every dollar we spend, we’re getting $3.50 back. So, let me say again, for every dollar we’re getting $3.50. Any CFO will tell you that if you’re advertising on something at scale and staying between $3 to $4 on your return, that is a great marketing piece. Now for my buddies that I’ve helped set up that have smaller budgets. Let’s say they’re under, $1,000, $1,500 month and so forth, they’re reporting back to me at that level returns of 6 to 7 [crosstalk 00:25:08].

Cody Hofhine:
I’d say, it should be higher.

Chris Arnold:
Higher, it’s 1:6, 1:7. But again, the law of averages is working in their favor. So, the thing I like about it is, again, if you’re spending little in the beginning and getting it up and going, that’s what makes it easier to scale, is because your highest dollar per dollar return is actually spending a smaller amount initially.

Cody Hofhine:
Tell me this. This is not a question. I just thought on the spot. So, you have your $1 out to $3.50 coming back $3 to $4 coming back, which is phenomenal. What about the room for growth? Is that something that can also scale as well? Like if I said, “Hey, I have a budget of…” I’m making this number out, hypothetical. “…$40,000. Can I find a way to spend $40,000 on radio or is there a point where it’s like, okay, you’ve maxed out?”

Chris Arnold:
Yeah, so it depends on your market, right? But that’s what attracted me to radio because here’s what frustrates me. What frustrates me is a marketing piece which you get into that works well, and then you hit a low ceiling, right? You can only spend so much and then it’s like, “Man, I’d love to scale that more, but I can’t.” That doesn’t happen with radio. So, to give you an idea. Right now, in Dallas-Fort Worth, we spend $27,500 a month.

Cody Hofhine:
That’s awesome. $27,500 every month and about on average. So, you guys can do the math offside on this about $3.50 for every dollar spent.

Chris Arnold:
Yeah, exactly. Absolutely. So, that’s what I like about it. It’s funny, it goes from both extremes. I’ll tell you why people don’t initially do radio, they automatically assume it’s not affordable. My first station that I got in and picked up. I picked up for $1,500 a month. That was it. That was my very first station to get me off the ground before we grew. So, I love the fact that there’s a low barrier of entry on the cost, and most people automatically assume that there’s not. I’ve got to spend right off the bat $5,000, $10,000 a month. It’s not true. But then over to the season side, for someone running a bigger team that’s looking for scale, the great thing about radio is you can scale it. So, you get the best of both worlds on both sides. You actually don’t see that with every traditional marketing piece.

Cody Hofhine:
That’s correct.

Chris Arnold:
That’s the reason I’m such a fan of radio, it’s just has a lot of great components to it.

Cody Hofhine:
So, you’ve talked all the moving parts. I hope I’ve covered all with questions. If you feel like I missed them, please chime in. But ultimately, you help people set this all up. You have a way to get this going. From the timeframe, you say it can be five weeks to whatever your negotiating skills are. What about knowing the know-how of like when you do it? You letting the radio station say, “Hey, you should probably do this at 7:00 AM.” Or is this something you already know? That data that helps people understand like, “I know what time my target market is listening to the radio.” Or is that coming from the radio? Like, how much is involved from you versus radio?

Chris Arnold:
It’s 100% on us. You’re telling the radio station what to do. If anything, you’re combating their philosophy, which is going to go against what is right for finding discounted properties. This is what’s interesting. So, this is why people get in trouble. They rely on the radio station. Again, think about radio advertisement, right?

Cody Hofhine:
We have a spot open. I’m going to sell it because this is flat open.

Chris Arnold:
You can advertise anything on radio. So, if I’m selling a product or something like that, then that philosophy is going to look different than finding distressed properties. So, a radio station doesn’t necessarily know the best philosophy for finding a distressed property. You can imagine how many types of companies advertise on there. So, there’s no way that they have cracked the code on that, right? So absolutely, it’s all in our hands. What we do is a full blueprint like it’s pretty much turnkey, all the way to the point that we help our students actually pick their stations. I don’t know about you, Cody, but if I get coached, I don’t want to make a ton of decisions.

Chris Arnold:
I want to step one, step two, tell me what to do, help me set it up, and get it up and going. So, I can start getting a return and getting this lead source going. That’s what I appreciate it and that’s how we’ve structured this thing to be a complete blueprint all the way down to what you should say, how you should record it, what times you should advertise on, what stations you should be. I mean, literally every question you have along the way, there’s an actual formula to this process. That’s what we’re helping people by setting up the formula that has helped us get successful for doing this for the last nine years.

Cody Hofhine:
So, here’s what I love. I’m sitting here looking at what has helped more students in any coaching program or any kind of mentorship program, is it comes down to what you just nailed. That’s just narrowed it down to very simple actions, broken down for someone like me that A, is not technical. B, needs it broken down that literally a kindergartener can understand this. I feel like that’s exactly what you do, is you take the approach of just no, no step by step. Here’s what it is. We’re going to watch you-

Chris Arnold:
We hand it on a platter.

Cody Hofhine:
That’s right. That’s right. What does this look like for those out there? Let’s say someone says, “Hey, I like what I hear. I want to learn more about this.” Is it something that with radio, it can take on a ton of students? Is this something that’s territorial? What does that look like?

Chris Arnold:
Man, I’m going to tell you the first decision I made and it’s because I’ve been burned so many times on things getting saturated. We sat on this for a while. My thought has always been about preserving because I would hate for what happened to radio what happened to direct mail, right? So, one of the things we decided from the beginning was not to saturate the market. So, we’re actually running exclusivity in territory. Again, my business still relies on radio.

Cody Hofhine:
That’s right. I don’t want other people in my market.

Chris Arnold:
[crosstalk 00:31:09] getting myself out of business here, but I think people appreciate that sense of exclusivity. That sense of, “Okay, is this something I’m going to get on and then all of a sudden, everyone in the country is going to be doing?” No. We said from the very beginning, we’re going to preserve it. So, we’re going to create exclusivity per market. I’m glad you asked that question, because that’s an important point. If we can do that as an REI radio community, then what we can do is have something that’s going to work for us for a long time.

Cody Hofhine:
Now, guys, here’s something great. So, all of you listening in, when we met Chris for the first time, he was an individual that had integrity, an individual that care about the success of others versus his own self. That’s crucial in today’s market. That’s crucial for how people win. If you want students that win, it’s because you wake up every morning saying, “Hey, how do I help college student get their first deal?” versus “Hey, how do I do something that’s going to be amazing? I’m going to make incredible money.” This is not why he lives in Tulum because he’s just making hands over fist. He has a way to do this where he can do this virtually, which is really cool and unique, which we want to talk more about. This is something I’m interested in.

Cody Hofhine:
You might be buying a little home next to yours for me and my family. But I’ll tell you what’s been great about watching Chris is how he takes care of the client, how he walks them through step by step. His team is phenomenal by the way. His team does a lot of this and it’s been incredible to watch. If you’re looking to say “Hey, I’d like to begin a conversation, see what this looks like and see if this sounds like a fit.” Go over to wholesalinginc.com/reiradio. Okay, so REI stands for Real Estate Investing. Don’t let this over get complicated for you, but just wholesalinginc.com/reiradio. That’s where you can fill out a small application.

Cody Hofhine:
Chris and his team review the application, see if it’s a fit, and then reaches out to you to further discuss if this really is a good fit. What is a good fit, Chris? What are you looking for? What’s a good fit? Is this someone that’s like can be right out of the gates, gets the concept of investing? Or is this someone’s like, no, we like someone a little bit more savvier, has done a couple deals? What does that look like?

Chris Arnold:
It’s been interesting as I’ve watched students come in, right? Because, I talk with each student as they come in. It’s actually pulling in both, right? It’s the person that’s new to wholesale and goes, “You know what? I spent $1,500, $2,000 on direct mail a month and it’s not really working out,” or something. It could be anything, whatever that is. Not necessarily DM, but I want to put that somewhere else where I feel like I’m getting a greater ROI. So, it’s for the person that’s newer, that wants to get out of the gate, and get ahead of the competition. One of the ways to be successful… Ray Dalio says this, “It’s the ability to go against the consensus and be right.”

Cody Hofhine:
So true.

Chris Arnold:
Because what I’ve noticed about real estate is everyone just follows everyone. Everyone duplicates everyone. Again, there is a point that duplication is obviously important, but there are points in your business where you’ve got to go against the consensus and be right. So, I know that there’s people out there going, “I’m just looking for something different.” And then I’m getting the people that are like, “Dude, I do over 100 transactions per year. I’ve got a massive [crosstalk 00:34:41]-

Cody Hofhine:
I just want to add another arm.

Chris Arnold:
… and I need something else.” So, part of the reason we share this is some of the pain that we went through with some of the other traditional marketing pieces that just literally fell out on us because they got oversaturated. We know that’s just going to add a lot of value, because right now, our industry is hungry for something that they can rely on when it comes to lead generation. Because if that domino breaks down, doesn’t matter how great your team is, doesn’t matter anything that you have past that, how well you can dispose of property, if your lead generation process breaks down, you’re in trouble.

Cody Hofhine:
Awesome.

Chris Arnold:
You know why it’s getting paid.

Cody Hofhine:
What other things, anything that I missed that you’d want to finalize and put a big old, beautiful ribbon on top of this package that we shared? Is there any advice, anything you want to share with those listening and watching right now?

Chris Arnold:
Yeah, the last thing and I bring this up, because my team has brought it up so much. When I talked to them as we were going to share this as a company to the country, what were the things that we wanted people to understand. One of the things they really impressed upon me is as a company, they feel proud of radio, because it’s not sleazy. There are certain marketing channels out there in which we know that we’re spamming people. We honestly feel a little bit shameful about how we’re generating that lead.

Cody Hofhine:
Sure.

Chris Arnold:
Let me tell you this, when you build a team, you might not be there yet. Eventually, that gets passed on to someone. If you have acquisition managers that get beat up because of hate calls and you have pre-qualifiers that are answering phones that are getting yelled at. You have closing managers that are just dealing with people right off the get go that just aren’t unhappy, because the way you came to them. When you can set up radio and people call in and they’re happy to talk to you, I’ve never, ever gotten a hate call of radio.

Cody Hofhine:
Really? Nothing?

Chris Arnold:
No, No one’s going to call you.

Cody Hofhine:
Where’s my people living out there like, “Oh, this guy’s a piece of crap. I’m calling him right now.” No, you don’t even [inaudible 00:36:48].

Chris Arnold:
I can promise you, not ever gotten even one hate call. So, the thing I would impress is the thing that my team would say, is understand that as an organization, it’s a marketing channel that you can be proud of. It’s something that you can stand behind, you’ll put your company name on there, you’re not going to put your company name on a bandit sign, not going to happen. You might not even do that on direct mail, right? If you’re text blasting people, you’re probably not going to want your company name on there, or it’s going to get hated. But with radio, it’s not sleazy, and my team loves the fact that they can be proud of that lead source. I can’t tell you how important that is when you’re running an organization in your culture.

Cody Hofhine:
That’s awesome. Well, guys to end this some of the cool things is I had to think about it in my own head was the celebrity factor. I thought that was just crucial. I thought that was something unique and cool that really no other marketing channel can develop. Cold calling can’t develop that, direct mail can’t market that. But radio does add that level of celebrity much like when I saw those two attorneys at the jazz game. I was just sitting there thinking, “Oh man, that’s so and so.” And then I start sat there and thought about, I’m like, “Dude, they’re just two attorneys. They’re not really celebrities.” But it’s interesting how Chris said, our mind will tell us how these guys are something else. You can do that; you can build that celebrity factor.

Cody Hofhine:
The other one I think is crucial, is the fact that we’re sending out a lot of marketing. You have to send out a lot. You got to be consistent, because you never know when things change. The beautiful thing about radio is they’re now just going to simply call you when they’re ready, because they’ve been hearing you in the background for so long, that they don’t need to go to the stack of postcards. They don’t need to go Google you. They already feel like you are an established authority, and that you know what you’re doing because you bought radio space for heaven’s sakes. When they’re ready, they’re going to call you. So, Chris, thank you so much. This has been something for me, as I’ve been trying to unravel my head saying, “Oh, man, getting into this.” I have so many little questions.

Cody Hofhine:
So, I hope my questions didn’t throw you off, thinking “Dude, Cody, where do these questions come from?” But what I love is your complete confidence in delivering the answers, and then me thinking “Yeah, that’s right. That’s exactly what I need to hear.” Because this makes it look very, very good. In fact, we were talking before we started this how excited I am to have this investment moving forward for 2020 for my own company here in Utah. Super excited, Chris. Chris is a go giver, the guy’s awesome.

Cody Hofhine:
If you’re interested, I’ll put a link in there but again, it’s wholesalinginc.com/reiradio, where you can begin the conversation to see if it’s something is a fit. If so, get ready to start building that celebrity status, that awareness, and start getting some leads in that never dropped the F bomb at you. That’s something I just learned. I had no idea no one calls Chris, yelling out, because I get that all the time, or at least I don’t, my team does. But this will be a way we can relieve some of that stress. So, Chris, anything else you want to add?

Chris Arnold:
That’s it, man. I enjoyed hanging out with you. Lot of fun today. Great conversation.

Cody Hofhine:
Thank you guys. God bless you, guys. Get out there, charge, don’t just feel good about knowledge that you receive. Go out there and take action. That really is where you will start to change your life and change many lives out there that you come in contact with. God bless you guys. See you.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling