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!
7 Reasons Why You Should Be Using Radio
We are talking about the seven best questions that I get about radio. If you’re tuning in for the first time on this discussion of radio, my company has been utilizing radio for the last several years to generate motivated seller leads. We have done just about every type of lead generation that’s out there. Without question, for us, radio has been the most consistent and dependable marketing strategy that we’ve ever put in place.
Obviously, we are coaching people around the country on how to set up radio and their market and get a lot of the benefits that we’ve gotten from setting it up and ours in Dallas, Fort Worth. Let’s talk about these seven questions. These are great questions. I get a ton of questions about radio, but there are some that stick out to me as, “That’s a good question. I know a lot of people would ask it.”
Radio Is Not Expensive
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?” 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’ve got to begin with a budget of $5,000 to $10,000 a month. That is not true. When I started out radio in Dallas, Fort Worth, which is literally one of the most competitive markets in the country for radio, it was big. My first station was $1,500 a month. A lot of people make this assumption about it being too expensive, so they steer clear of it, but it’s not true.
Easy To Use
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. “What stations should I advertise on? What should I say in my ads? Should I run a 30-second spot or a 60-second spot? Should I put my URL in the actual ad or just a phone number?” All of these variables add up in the decision-making process and people go, “That seems confusing. I’m not going to step into it.”
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. The last thing is people confuse their demographic. I hear a lot of people say this, “Radio is old-fashioned, isn’t it?” My response to that is absolutely, and so is your demographic. A lot of people think that they are their demographic and they go, “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. Yes, they still listen to radio. They watch TV and they do not have Spotify downloaded on their phone. Those are the three reasons that I’ve found that have kept people away from radio for all these years. Question number two that I get is, “How difficult is the process of setting radio up?” Radio is easy to set up. The only challenging part is 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. I’d break it down like this. I would say that radio is about 80% administrative setup and about 20% on the sales negotiation side. Most of radio is like choosing your station, looking at the right reports, going down and recording it. Twenty percent 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 1/3 of what other people are paying for it because most people pay retail. We’re in the wholesale business. We buy properties wholesale. Let me tell you this. We buy radio wholesale as well. Once you understand how to do it, radio is not that difficult to set up.
Another great question I get is, “What can I expect on lead volume? How quickly will leads come in? How many leads will come in?” Let me break this down into those two parts. Leads come in quickly, unlike other marketing sources that might take six months to build credibility or to get momentum. When you advertise on radio, you’re hitting an untouched audience that’s never heard the ad, probably has not gotten a postcard or gotten a text message or ringless voicemail.
What we found is every time we launched a new radio station, the majority of the calls in the sense of the highest peak come in in the first 90 days. After that, it levels off to what it’s going to be consistently over time. We find that when you’re advertising on radio, you start doing deals immediately. You don’t have to wait six months. 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. That’s important to understand. If you’re advertising on radio, you’re actually getting a manageable amount of calls. Think about this. You remove all the spam calls that you get in the sense of people being frustrated because you’re spamming them, those hate calls.
Radio has been the most consistent and dependable marketing strategy that we’ve ever put in place.
If someone picks up the phone and calls you because they hear your ad, they want to do business. That’s why the volume is lower because you’re getting rid of the other 50% to 75% of the hate calls that you might get, let’s say, on a campaign like direct mail. You’re just getting the quality calls. It’d be like taking direct mail, getting rid of all the hate calls, and only getting the good quality calls. That’s fundamentally what radio is like.
Another great question that we get is, “What is the true ROI on radio? No BS, the actual true ROI.” I’m going to break this down into two parts. If you’re spending over $5,000 a month on radio, and 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 1 to 3 to 1 to 4 return. That means for every $1 we spend, we’re getting $3 to $4 back. If you understand anything about KPIs and marketing, any great CFO will tell you that if you’re getting a $3 to $4 return on your marketing, that is a great marketing piece.
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 or $2,000 a month, they report to me that their returns are obviously higher, somewhere around 1 to 5 to 1 to 7. For every $1 they spend, they’re getting $5 to $7 back. The reason that is, is the Law of Averages is working in their favor because they’re spending less money. Obviously, when they close the deal, that covers a lot of the expense and they go to profitability immediately. That is the true numbers on radio. The true ROI.
Another great question that we get is, “Is radio only for the seasoned real estate investor?” No, it’s actually for both. Let me tell you why. We started out with radio right after we launched direct mail. It was the second thing that we launched in our company. I’ll tell you why it works well for someone that’s new to the business. Number one, it’s affordable. You can get in and start with a budget of anywhere from $1,000 to $2,000. Number two, because the call volume is lower, it requires lower maintenance.
If you’re a wholesaler out there and right now, it’s just you. You haven’t built out the team. You’re wearing every hat in your organization. You don’t want a marketing piece that requires a lot of work to run it and manage the call volume. With radio, it’s a set and forget it. Once you set it up, you don’t have to manage it. The calls that are coming in are lower volume, higher quality. Therefore, what we found is it’s a great thing to start with if you’re running as a solo investor right now. It works well for the seasoned investor because it’s scalable. You can spend tens of thousands of dollars a month on radio and still have more to spend on what a market can do for you. Especially in larger markets, you can spend a lot of money on radio.
Another great question that we get is, “Will radio work in my market?” 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, Houston. You have your midsize level markets and then you have your small markets. Let’s break those down. It works in large markets because you’ve got a lot of options. In a market like Dallas – Fort Worth, or let’s say San Francisco, or maybe somewhere down in Miami, big markets like that, why radio works is because you’ve got a lot of options to choose from. It enables you to get in and negotiate and choose the best stations at the lowest prices. Anytime you got a lot of options, your marketing is going to work.
In a midsize market, that’s a sweet spot. What I love about the midsize 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. You can get a better deal. It’s easier to get better frequency in a midsize market because you’re not trying to cover millions of listeners. You might be covering hundreds of thousands of listeners or maybe just a couple million. Midsize level of markets works well.
There are the small markets. These are interesting. You have less options to choose from, but the price of radio if you’re in a small market, I’m honestly jealous being in Dallas – Fort Worth. They are inexpensive. You can get on and own an entire town inexpensively. 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.
What I love about it from a branding standpoint is it’s simple to get in and own a small market and everyone to know about you. To answer that question, does it work 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.
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 are a lot of benefits that I’ve talked about. You get celebrity status, instant credibility, a highly motivated lead, set it and forget it. Those are great benefits. They’re up there for me. The thing that I appreciate about radio the most is that it’s consistent and dependable.
If you’re advertising on radio, you’re actually getting a very manageable amount of calls.
We’ve learned how to do marketing strategies over the years. We get good at them and then they fall out on us. Let’s say it gets overly saturated or the cost goes up, something like pay-per-click. There are these variables that you set it, you begin to depend on it, and then the game changes and you’re like, “That was working well for us. Now it’s not working.” What’s been interesting about radio is over the last several years, it’s the one thing that has stayed consistent in our lead generation plan.
Consistent And Dependable
To those of you, as you start to grow and get more overhead, and you have employees that were relying on you, you’ve got payroll to make, you’ve got overhead, you begin to appreciate lead generation pieces that you can depend on because honestly, they help you sleep well at night. Something about radio that I appreciate the most is the fact that it’s consistent and dependable.
Those are the seven best questions that I get about radio. 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. 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 resonating with me,” then we encourage you to simply go WholesalingInc.com/reiradio.
Simply book a call, get in, answer questions and see if this is a good fit for you. I can tell you, since we’ve launched this, there have been a ton of people coming in because they realize, “This is untapped. This makes a lot of sense the more that I think about it.” We want to remind people that we’re going to preserve this. We’re limiting the amount of people that can come in and market so that we do not oversaturate it and it’s something that we can all continue to rely on together as a community that utilizes radio to find distressed properties. It’s great talking with you. I’m glad to answer the questions that you have. If you’re interested, reach out. Thank you so much for joining us. I’ll talk to you later.
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About Chris Arnold
Chris Arnold is a 15-year Real Estate veteran who has closed over 2500 single-family real estate transactions in the DFW metroplex. Chris is the founder of multiple companies that are managed by a US virtual team, which allows Chris to run his organizations while living in Tulum, Mexico full time. His passion for leaders has led to the creation of Multipliers brotherhood which serves the top 5% of real estate entrepreneurs out of the US. Most recently Chris has launched his REI Radio coaching program. This program is designed to teach real estate investors the marketing stream that everyone knows about but NO ONE is doing!