Posted on: February 12, 2020

Have you tried every marketing channel available but still can’t find one you can truly depend on? If so, this episode is for you!

In today’s show, Wholesaling Inc., newest coach Chris Arnold talked about radio—the only marketing channel that gives you instant credibility, celebrity status, and high quality leads!

Chris has been in the real estate business for 14 years and for almost a decade now, he’s been relying on the power of radio to bring in motivated sellers. To date, he has closed over 2, 500 deals just from radio alone.

If you’re looking for a “set it and forget it” marketing channel that’s low in cost but high in profitability, don’t forget to tune in. You’ll not only discover all the peerless benefits only radio can offer, you’ll also learn all the basics of this truly one of a kind marketing medium!

Key Takeaways

  • 3 reasons people hardly advertise on the radio
  • The challenges involved when setting up radio
  • What the secret sauce of radio marketing is
  • What you can expect from radio in terms of lead volume
  • What the actual ROI of radio is
  • Who can benefit the most from advertising on the radio
  • What the 3 types of markets are
  • The greatest benefit advertising on the radio provides

RESOURCES:

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

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Episode Transcription

Chris Arnold:
Today we are talking about the seven best questions that I get about radio. Now, if you’re tuning in for the first time on this discussion of radio, my company has been utilizing radio now for the last nine years to generate motivated-seller leads and we have done just about every type of lead generation that’s out there. And without question for us, radio has been the most consistent and dependable marketing strategy that we’ve ever put in place.

Chris Arnold:
And so, obviously now we are coaching people around the country on how to set up radio and their market and to get a lot of the benefits that we’ve gotten from setting it up in [inaudible 00:01:40], Dallas-Fort Worth. So, let’s talk about these seven questions. These are really great questions I get. I get a ton of questions about radio, but there are some that really stick out to me as, “Wow, that’s a good question.” And I know a lot of people would ask it.

Chris Arnold:
So, let’s dive right in. Question number one, if radio is a great marketing strategy, a great channel to find discounted properties, why is hardly anyone using it? Fantastic question. So, I’m going to tell you three reasons why I found this to be. Number one, people assume that radio is too expensive. They automatically have this idea that in order to advertise on radio, I got to begin with a budget of 5, $10,000 a month. That is not true.

Chris Arnold:
When I started out radio in Dallas-Fort Worth, which is literally one of the most competitive markets in the country for radio, it is big, my first station was $1,500 a month. And so, a lot of people make this assumption about it being too expensive and so they just steer clear of it, but it’s not true. The second thing is it’s very perplexing to people. It’s like a black hole because you have so many decisions to make around radio.

Chris Arnold:
What station should I advertise on? What should I say in my ads? Should I run a 32nd spot or a 62nd spot? Should I put my URL in the actual ad or just a phone number? So, all of these variables add up in the decision making process and people go, “Man, that’s just seems really confusing. I’m not going to step into it.” But here’s the thing, if you have a roadmap and you’ve got a proven way of doing it that you can duplicate, then obviously it makes it much easier.

Chris Arnold:
And then the last thing is, people really confuse their demographic because I hear a lot of people say this, “Radio is old fashioned, isn’t it?” And my response to that is, “Absolutely and so is your demographic.” A lot of people think that they are their demographic and they go, “Well, I don’t listen to radio, I’ve got Spotify, I do Pandora.” But I have to remind people that you are not your demographic. Your demographic is primarily over the age of 50. And yes, they still listen to radio, they watch TV and they do not have Spotify downloaded on their phone.

Chris Arnold:
And so, those are the three reasons that I’ve found that really has kept people away from radio for all these years. So, question number two that I get, how difficult is the process of setting radio up? Radio is actually really easy to set up. The only challenging part is actually knowing how to do it. But if you know how to do it, you know exactly the methodology to utilize to advertise on radio, it’s a pretty light lift. So, I’d break it down as this, I would say that radio is about 80% administrative setup and about 20% on the sales negotiation side.

Chris Arnold:
Most of radio is like choosing your station, looking at the right reports, going down and recording it, et cetera. 20% is actually negotiating with the stations, making sure that you get the very best price possible, because honestly, that’s the secret sauce of radio, getting it at a third of what other people are paying for it. Because most people pay retail, but guess what? We’re in the wholesale business, we buy properties wholesale. And let me tell you this, we buy radio wholesale as well. And so, once you understand how to do it, radio is actually not that difficult to set up.

Chris Arnold:
Another great question I get, what can I expect on lead volume? How quickly will leads come in? How many leads will come in? So, let me break this down into those two parts. Leads come in very quickly unlike other marketing sources that might take six months to really build credibility or to get momentum. When you advertise on radio, you’re hitting an untouched audience that’s never heard the ad, probably have not gotten a postcard or gotten a text message or a ringless voicemail.

Chris Arnold:
And so, what we’ve found is every time we launch a new radio station, the majority of the calls in the sense of the highest peak come in in the first 90 days. And then after that, it levels off to just what it’s going to be consistently over time. And so, we find that when you’re advertising on radio, you start doing deals immediately. You don’t have to wait six months.

Chris Arnold:
Now, call volume. I’m going to compare this to direct mail. Direct mail is a high call volume, low quality. If you go to the other side of the spectrum, you’ll find radio. It is a lower call volume, but a much higher quality lead and that’s important to understand. And so, if you’re advertising on radio, you’re actually getting a very manageable amount of calls.

Chris Arnold:
But think about this, you remove all the spam calls that you get in the sense of people being frustrated because you’re spamming them with those hey calls. If someone picks up the phone and calls you because they hear your ad, they want to do business. So, that’s why the volumes lower because you’re getting rid of the other 50 to 75% of the hey calls that you might get, let’s say, on a campaign like direct mail, you’re actually just getting the quality calls.

Chris Arnold:
It’d be like taking direct mail, getting rid of all the hey calls and only getting the good quality calls. That’s fundamentally what radio is like. So, another great question that we get is, what is the true ROI on radio? No BS, like the actual true ROI.

Chris Arnold:
So, I’m going to break this down into two parts. If you’re spending over $5,000 a month on radio, and I know this for other guys I know around the country advertising on radio as well that have, let’s say, big budgets, we all consistently, regardless of our markets, land around a one to three to one to four return. That means for every dollar we spend, we’re getting three to four dollars back. And if you understand anything about KPIs and marketing, any great CFO will tell you that if you’re getting a three to four dollar return on your marketing, that is a great marketing piece.

Chris Arnold:
Now, to those that are spending less than 5,000, people that we’ve helped set up around the country that have a budget of $1,000 a month or $2,000 a month, they report to me their returns are obviously higher, somewhere around one to five to one to seven.

Chris Arnold:
So, for every dollar they spend, they’re getting five to seven dollars back. And of course, the reason that is, is the law of averages is working in their favor because they’re spending less money, so when they close the deal, obviously that covers a lot of the expense and they go to profitability immediately. So, that is the true numbers on radio, the true ROI.

Chris Arnold:
Another great question that we get is, is radio only for the seasoned real estate investor? No, it’s actually for both. And let me tell you why. We started out with radio right after we launched direct mail. So, it was the second thing that we launched in our company. And I’ll tell you why it works really well for someone that’s new to the business. Number one, it’s affordable so you can get in and start with a budget of anywhere from a thousand to 2000. And number two, because of the call volume is lower, it requires lower maintenance.

Chris Arnold:
So, if you’re a wholesaler out there, and right now it’s just you. You haven’t built out a team, you’re wearing every hat in your organization, you don’t want a marketing piece that requires a lot of work. A lot of work to run it and a lot of work to manage the call volume. Again, with radio, it’s a set it and forget it. Once you set it up, you don’t have to manage it. And the calls that are coming in are lower volume, higher quality, therefore, what we found is it’s actually a great thing to start with if you’re running as a solo investor right now.

Chris Arnold:
And of course it works very well for the seasoned investor because it’s scalable. You can spend tens of thousand dollars a month on radio and still have more to spend in the sense of what a market can do for you, especially in larger markets you can spend a lot of money on radio.

Chris Arnold:
Another great question that we get is, will radio work in my market? Great question. So, let me break this down. There are three types of markets that are out there. There are large markets like let’s say Dallas-Fort Worth, right? Houston. Then you have your mid-size level markets and then you have your small market. So, let’s break those down. It works in large markets because you’ve got a lot of options.

Chris Arnold:
In a market like Dallas-Fort worth, or let’s say San Francisco, or maybe somewhere down in Miami, big, big markets like that, why radio works is because you’ve got a lot of options to choose from, which enables you to get in and really negotiate and choose the best stations at the lowest prices. So, anytime you’ve got a lot of options, your marketing is going to work. In a mid-size market, that’s really kind of a sweet spot. And what I love about the mid-size markets is they’ve got a good inventory of radio stations, but they’re not going to be as pricey because they’re not a major market.

Chris Arnold:
And so, you can actually get a better deal and it’s actually easier to get better frequency in a mid-size market because you’re not trying to cover millions and millions of listeners. You might be covering hundreds of thousands of listeners or maybe just a couple of millions, so mid-size level of markets work really well.

Chris Arnold:
And then there are the small markets. These are interesting. You have less options to choose from, but man, the price of radio, if you’re in a small market, I’m honestly jealous, being in Dallas-Fort Worth, they are really inexpensive. And so, you can actually get on and own an entire town very inexpensively. So, if you’re in a smaller market, maybe you’ve got a few hundred thousand people, whatever that looks like, you start advertising on the radio, everyone in that city is going to know who you are pretty quickly.

Chris Arnold:
So, what I love about it from a branding standpoint is it’s really simple to get in and own a small market and everyone to know about you. So, to really answer that question, does it work really in every market? Yeah, it does. Each market has its pros and cons, but they all work and I’ve seen it, I’ve got buddies advertising in all three of those types of markets.

Chris Arnold:
Now, I want to finish with the last question. The question that I get a lot. It’s a personal question. “Chris, what do you think is the greatest benefit of radio?” There’s a lot of benefits that I’ve talked about. You get celebrity status, you get instant credibility, it’s a highly motivated lead, it’s set it and forget it. Those are great benefits. They’re definitely, definitely up there for me.

Chris Arnold:
But the thing that I appreciate about radio the most is that it’s consistent and it’s dependable. We’ve learned how to do marketing strategies over the years, we get really good at them and then they fall out on us. Let’s say it gets overly saturated or let’s say the cost goes up, something like pay per click. There’s just these variables that, like you said it, you begin to depend on it and then the game changes. And you’re like, “Man, that was working so well for us and now it’s not working.”

Chris Arnold:
What’s been interesting about radio is over the last nine years, it’s the one thing that has stayed consistent in our lead generation plan. And when you’re running a business, and to those of you as you start to grow and get more and more overhead and you have employees that are relying on you, you’ve got payroll to make, you’ve got overhead, you really begin to appreciate lead generation pieces that you can depend on because honestly they help you sleep well at night.

Chris Arnold:
And so, that is definitely something about radio that I appreciate the most is the fact that it’s consistent and dependable. So, those are really some of the best questions, the seven best questions that I get about radio and I love answering questions about it. Obviously we’re very passionate about it because it’s worked so well for us and we’re excited to share it.

Chris Arnold:
So, if you’re tuning in and you’re going, “I’d like to learn more about radio. This is interesting. Chris, what you’re saying is really resonating with me.” Then what we encourage you to do is simply go to wholesalinginc.com/reiradio. Again, that’s wholesalinginc.com/reiradio and simply book a call, get in, answer questions, see if this is a good fit for you.

Chris Arnold:
But I can tell you, since we’ve launched this in December, there have been a ton of people coming in because they realize, “Wow, this is untapped and this makes a lot of sense the more and more that I think about it.” And of course, we want to remind people that we’re going to preserve this, and so we’re actually limiting the amount of people that can come in in markets so that we do not over-saturate it and it’s something that we can all continue to rely on together as a community that utilizes radio to find distressed properties.

Chris Arnold:
So, great talking with you today, glad to answer questions that you have. And if you’re interested, definitely reach out. I’m Chris Arnold and thank you so much for joining us today. Talk to you later.

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