Posted on: September 30, 2020
WI 526 | Radio Advertising

 

If you think finding deals in today’s market is impossible, think again. Today’s guest launched radio ads amidst all that’s going on and he’s already closed two lucrative deals in just 8 weeks and has 3 more in the pipeline!

Chad Young is an entrepreneur at heart. While he already has a lot of successful ventures, he’s constantly on the lookout for ways that can help contribute to his business success.

In this episode, Chad shared what he liked about radio, how much he has spent and how much he has made so far, and what his plans are. He also shared many beneficial business insights that you can also apply to your own business.

If you’re considering radio advertising and would like to know what to expect, this episode is for you!

How Dominating The Air Waves Led This Wholesaler To Multiple Deals In A Few Short Months With Chad Young

Episode Transcription

The guest we have on, wait until you know his numbers, return, and story. This is super exciting. Here’s what you’re going to get by the time you finish it. We have some students that come in on REI Radio and they get up going slowly, depending on their budget and how seasoned they are. You get someone like my guest that comes on and within a matter of a couple of months is already on seven stations, rocking and rolling, and got deals closed and in the pipeline. You’re going to want to read this. I’m pleased, excited, and proud of this student. Chad Young, welcome to the show. How are you?

Thanks, Chris. I’m good. I will try and match your energy enthusiasm.

Background for people who don’t know Chad Young, how long you have been in the game, and a little bit about your business.

WI 526 | Radio Advertising

Radio Advertising: We’re in this to solve problems and to serve people ultimately.

 

I am a father of three. I live in North Idaho. It’s beautiful up here. I’m married to the woman of my dreams. I own a janitorial company that we’re in the process of selling because this has taken off and done so well. I’ve always wanted to be in real estate from a super young age. I launched my company on the first of 2020 officially.

Wait until you know these numbers, if you’re reading. Consider the fact that Chad launched in January of 2020. Good for you. It’s always the inspirational story when someone goes from working a job or transitioning from one industry to another industry. For a lot of people reading, that’s the dream like, “I want to do this full-time.” Chad, to those reading, what would you tell them about making that jump? Maybe a little bit of wisdom. How do you do that? There’s a lot of fear around that. That’s a big jump.

I want to set the stage, too. I started a janitorial company with my wife when we got married to have money to invest in real estate. In 2019, I realized I did not need a whole lot of money to invest in real estate. That business ran on autopilot. I was in it a couple of hours a week managing our manager and she managed our staff. We had a kid in 2019 and I got serious about wanting to pursue real estate. I had a lot of time and, by God’s grace, I had a lot of money from the janitorial.

I got connected with a wholesaler who went through the Wholesaling Inc. program. He mailed one of our rentals his flyer and I called him. I’m like, “I want to be on your buyer’s list.” I then found out what wholesaling was. I then jumped on that bandwagon and it was all downhill from there. It’s been a huge blessing. I love risk and reward, so that’s something I’ve always been a business person. It’s a numbers game for me. I look at what other people have done and if they did it, there’s no reason I shouldn’t be able to.

Everyone’s always curious about marketing channels and so forth. Before radio, how were you coming across most of your deals? What was working for you?

I was one of those guys that wanted to throw everything at the wall and see what stuck. I know that’s the opposite of what they recommend. “Focus on one, dial it in, move on to the next.” I’m like, “Do Google Ads, PPC and direct mail.” Get the volume going. We did cold calling, Lead Sherpa texting platform, and direct mail. We did a couple of other marketing channels and we saw traction from those. We did two deals from those, but the first deal we did was a $50,000 deal and I was like, “This is sweet.”

I love when that happens, when someone gets in, does that first deal, and gets a good pop. You probably agree, at that point, there was no looking back.

I made in one deal about half of what I made the whole of 2019 with a staff of eleven people and I’m like, “That’s a joke.”

Let’s hop into some meat. My first question is, what attracted you to radio? You’re a guy that’s saying, “I got in. I was experimenting with some different things.” Every time we choose a marketing channel, it has to go through some type of decision process. What were the initial qualities that drew you to radio to go, “This might be a good marketing channel for my business?”

Having tried out a lot of other marketing channels like cold calls, text blasts, direct mail, and things like that, I realized I wasn’t crazy about outbound marketing. We’re doing a whole shift to shift our entire business to probably 90% inbound. You have probably done the texting platforms and things like that where you get some responses where it’s like, “I made that person mad,” or like, “They took that seriously for a warm text.”

To be honest, when I get those texts, I’m like, “Why are they texting me? They don’t know me,” or, “Why is this guy cold calling me? I can’t even understand him,” and things like that. We’re in this to help people. We’re in this to solve problems and to serve people ultimately. I didn’t feel I was doing that to the best of my ability with the amount of people I was angering.

Spamming might be the word. It’s funny. I completely relate with you on that. Those marketing channels work. If you’re reading and you’re doing well with them, we’re not deterring you, telling you not to do them. You’ll also realize that you have preferences as a business owner. Maybe you have certain things that you value and don’t value.

Chad, I don’t like the feeling of spamming someone. The word I use is it feels a little bit sleazy. With radio, I felt like I was doing something more sophisticated. Maybe describe it as something more professional, and then I knew because of those things, it was building the strength of my brand and not taking away from my reputation because I was spamming people. Do you relate to that?

Yes. You hear a lot of these people in a lot of the major texting platforms. They’re like, “When you text, don’t put your business name. Maybe use an alias name.” I’m like, “This is branding. That’s not the type of outreach I wanted to do.” There are guys that are doing it and killing it, and that’s awesome. They’re doing well and they’re still able to help and serve people. What avenue I want to get to those people is different for me.

Look at what other people have done. If they did it, there’s no reason you shouldn’t be able to.

I always tell people, “Choosing your marketing channel is a lot like dating or marriage. You have to define the qualities in your mate that you want.” The qualities you were looking for in your spouse are probably different than mine. One is no right or wrong. It’s what’s the best fit for us. I always tell people, “You’re more likely to be successful with marketing if you choose things that fit your style.” If you’re doing something and you hate the way it makes you feel or doesn’t feel right, then stop doing it. Find a marketing channel that you can be excited about.

I love talking about radio. It’s so easy for me to continue to talk about it because I respect it and it makes me feel good to do it. That’s played into why I’ve been successful. Right off the bat, you have come out of the gates swinging on this thing. Let’s get into setting it up. People always want to know everything is work. Everything to set up takes a little bit of time to do that. With radio, in comparison, I’ll use you as a great example. You’ve done text blasting, so you set up that system, you set up a cold calling system. How did radio compare to those marketing channels in the sense of the difficulty to launch it and get it off the ground?

Radio was more difficult, in my opinion, because for cold calling and texting platforms, the day I wanted to get into those, I was texting people and was cold calling. We had people lined up to do that. You guys set the expectation that there are negotiations or challenges, things like that, which I like. I like negotiations and challenges.

It was probably about two months after I started the program that we got on our first radio and it was two months of solid negotiations with the companies. I didn’t think they were going to budge and I still have stations that aren’t going to budge. I’m not going to stop, but I don’t know if they’ll budge. It was a little more difficult to set up because it took more time and perseverance. Now that it’s set up, I’m on the opposite side of that spectrum where there’s a lot of maintenance and things like that with texting and cold calling. There’s little maintenance with radio. It’s a give and take. In my opinion, it’s a harder entry with more rewards.

It’s great feedback because if you’ve been following the students that we brought on, I usually ask, “On a scale of 1 to 10, how difficult do you think it was to set up radio?” We get a lot of 2s and 3s. Chad, I like your perspective because you’re coming in and every person’s experience is different. This is good feedback in the sense of your experience going, “In comparison to the other ones, I felt like I could get them out faster.”

In a concrete context, you’ve been with radio for four months, meaning it took you two months to set it up. When we say set it up, that just negotiates that price because we’re buying at a discount. You’ve been live for two months. To give context, of the stations you’ve negotiated, you’ve knocked down seven. Is that right?

Yes.

That’s not bad. That’s good out of your negotiations. Let’s say you do get into something like radio. Chad’s experience is, “This feels like a heavier lift on the front end than maybe some of the other ones.” I love what you said in contrast. Now that it’s set up, would you agree it’s set it and forget it? You just answer the phone when it rings and makes sure you pay your phone bill. There’s not any maintenance like you get with direct mail and all the other things that need continual work.

Yes, 100%.

That’s some good feedback coming in with a different experience. Let’s talk about some of the successes you had. You’re on seven stations. You’ve been advertising roughly for about eight weeks. In eight weeks, you already closed two deals, paid out. Those two deals that you closed, what was the profit that you brought in on each of those deals?

Our KPIs were in a transition into a different CRM. Not everything’s plugged in, but the two assignment fees were $31,000 and $26,000.

That’s not bad to get in, to be advertising for two months and already have put a $26,000 check in your pocket and a $31,000 check in your pocket. On top of that, you also have two deals that are pending, right?

Three pending. Two of them closed.

Two more closing on the books, and then you have another one on top of that. You and I were doing some conservative math because you’re building out all your KPIs, so I said, “Let’s be conservative about this.” When those five deals closed, we were roughly estimating a projected profit that you’d be around $150,000 conservatively off of those five deals. Is that right?

Yes.

How much have you spent on radio?

WI 526 | Radio Advertising

Radio Advertising: When you’re on radio, you disarm any amount of questioning that people may have.

 

You’re not going to want to know. If I’m including the numbers I purchased for everything, under $10,000.

I tell people all the time on radios, “You should expect about a return of about $1,000 to $3,000 to $1,000 to $4,000.” If you’re looking at Chad, he’s off to the races. We’ll need more long-term data to see where you land. Looking at this snapshot in time, you’re looking at about a $1,000 to $15,000 return. Let’s say those deals maybe take another month to close. Your next month, you’re spending a few thousand dollars more on radio. Maybe that moves that up to $13,000 or $14,000. You’re still $1,000 to $13,000, $1,000 to $14,000. That means for every dollar you’re spending, you’re getting anywhere from $13,000 to $15,000 back in this moment in a snapshot. How do you feel about that?

I’m so grateful. God is good. With the janitorial, we’ve been blessed with having a higher income so this is allowing us to do even more. It’s allowing us to pull out of something I’m not passionate about and dive head-on into something I’ve been passionate about for the last many years or so of my life, which is real estate.

People always go, “Chad, is this affordable? I’m newer to real estate. I have a smaller budget. I’m spending a few thousand dollars a month on direct mail. I run a cold-call system and I’m paying for some cold callers.” On the seven stations, you’re spending about $3,700 a month for seven radio stations?

It’s about that. We’re in a smaller market, different from the markets here or the Phoenix, or things like that. We cross the state line because I live in Idaho and we advertise in Spokane, Washington. That’s where the radio towers are based. We’re about 750,000 between those two counties, to put in perspective.

If you’re reading, 750,000 is what we call cumes, the size of the listenership. Seven hundred and fifty thousand is a substantial amount of cumes. I wouldn’t say it’s crazy, but that’s high. If you’re reading and you’re asking, “Does radio work in a smaller market or a mid-sized market? Chris, do I have to be in a market like yours? This is only going to work in Dallas or Phoenix.” I always tell people, “This works in any market and the value of being in a smaller market is your budget is going to be so much less than mine.”

Chad, your budget is $3,750 for seven stations. My budget in Dallas for that is $27,500. That shows you the value of potentially being in a small market. It’s probably one of the reasons why your dollar-for-dollar return is going to probably be continually greater than mine because your cost is so much less. Now that you’ve been up on radio and you’re advertising, anything new that you picked up on that you’re like, “I also like this about radio. This is another great quality that I picked up on in the sense of this being a marketing channel in comparison to others.”

With the change, migrating our CRM, and things like that, it’s been a busy past couple of months. The thing I like about radio is it works. We’re getting a lot of rural leads and things like that. Honestly, I’m learning a lot. I don’t need to spend time on those. I need to get off those phone calls quicker while still being able to serve them. I know it will build our brand, which I’m grateful for. I’m learning a lot about becoming an authority in your market versus an expert and things like that. I know that will help build our brand.

This was a cool thing. I had a guy call me to sell his house and he runs a million-dollar sales program where he teaches companies how to sell all over the US. When he called in, I hadn’t looked at my phone so I was like, “Thanks for calling Home Buyer. This is Chad.” He was like, “This is so-and-so.” I’m like, “Did you hear about us from our radio ads or from one of our direct mail pieces?” The guy’s like, “Let me stop you. That is amazing. You disarmed any amount of questioning that I had because I know that you’re on radio. I know that you’re doing this.” Seeing this guy that ran his huge sale program was like, “This is cool. You just gave me your authority upfront. Now I don’t need to question it.” I like that. Nobody that calls knows I’ve been doing this for a couple of months.

That’s why we call it instant credibility. If you’re newer to the game, and your name and experience within your city are not as much as, let’s say, some of the other guys, the bigger boys, you can come in and immediately have credibility in the eyes of the consumer because they don’t know. If you’re advertising on radio, they figure you must be around for a while because only those who advertise on radio are seasoned experts.

Chad, you’re going to get on top of that and you’ll start to experience the celebrity status. That’s when the public begins to elevate you. That’s when vendors start to call you and offer you discounted construction prices. It’s amazing the way in which you’ll start to become magnetic because of radio, which I love.

It’s interesting switching over to CRMs. You’re like us. You’re using REsimpli, which is one of the best things to come onto the market because it’s taking everything we pay a la carte for. Whether that be driving for dollars, QuickBooks, or tracking all of your KPIs, it puts everything we’re paying for that’s expensive and puts into one place. You’re making that jump and that transition as well.

Examine what you want to do for your business. It’s got to fit your personality style.

It’s segmented. I still have my CallRail and I still have some other things. We have our cash buyer list in Podio. I agree with you in a sense. It’s going to be the best program out there very quickly, but there’s still some integration I can’t do yet for call tracking and things like that. It’ll get there.

That’s why I love REsimpli. We’re on the front end of that transition of getting off of Podio, which was never built for real estate and getting into a CRM that was built for wholesalers like us. I know people always hear us talking about it. I always tell people to go check it out. It’s a system that you’re going to hear about more and more.

Chad and I switched over to that. You can go to REsimpli.com/chris. Everybody always wants a discount. I see posts all the time, like, “I’m looking for a good CRM,” so I’m always recommending people to check this out because this is going to be the future CRM for us as wholesalers. Go check it out and get a discount.

What’s the discount? I’m not even getting a discount.

You get the free list stacking if you use my promo code on that. All the new products that come down the line might have an additional cost to them. You’re grandfathered in like family and friends, so you get discounts off of that. Everyone’s always like, “Chris, if you got something you like, it’s your responsibility to go talk with the owner and get us a discount,” so I do. Go to REsimpli.com/chris, check it out, and take a look and see if you’re looking for CRM.

Here’s my question. Now you’re looking at radio and you’ve got seven stations in two months. It’s funny, as I’m getting to know your personality, you’re a low-key guy. In the beginning, you’re like, “I’m going to keep up my energy,” but I can tell you’re systematic and methodical. I appreciate people with your personality because you think through things. You’re probably well more planned than most of us. Being a few months in, I know you’re still learning the game. What do you think you want to see happen with radio? Do you want to add more stations?

I was thinking about that. I’m fairly capped as far as the amount of stations I can be on. There are two other ones that I want to be on in our market. I was even emailing the rep and she won’t budge and I can’t get her budge, which is okay. I understand that. You teach us in the program running all these reports and talking about the amount of listenership, those cumes you were talking about, and the amount of homeowners on each station, which is vital if you’re owning homes. It won’t be worth it in my limited experience to pursue a lot of those smaller stations because they’re going to be about the same cost as what my larger stations are.

I’ve touched base with some of them already and I’m looking at 1/3 of the listenership. Maybe that’s worth it, but it’s probably not something I’m going to explore. We’re born into some other inbound marketing right now as well. I’d love to be on those other two stations. Maybe we’ll jump on a call after this and you can tell me how to crack this nut.

They’ll always break. Here’s the thing I’m going to tell you, a tip for someone reading. What happens with radio is when you go in and you first negotiate on the first station, you don’t have any credibility. You’re not in the game. They don’t know who you are, so you have to work harder, but the momentum shifts. What begins to happen is the more stations you get on, the more they begin to reach out to you because they see you as a player.

Understand that your authority is building with those other stations. The fact that you’re going to continue to call and go, “I’m on seven stations. You’re the only one left that’s out here. I know at some point, you’re going to accept my price,” they will break. When they break, it might be a month, it might be a few months, but I’ve never had a station that, over time, if I continue to follow up, would not eventually accept that lower price. They will. Now, you’ve got the credibility behind you.

I was talking to Mitch Colluzi about this. He’s like you. He has bought almost every radio station in his entire market. He’s like, “Now when I call, it’s a different game because I got the upper hand. I know with these stations because I’ve picked up every station in my market.” He begins to feel that shift. The biggest thing I would tell you about your mindset is you got the upper hand right now.

If you’re reading and you want to see a face, we always encourage you to check us out on YouTube. I put additional information and videos over there that we can’t always put on the show. If you’re good looking for additional free value and stuff like that, definitely go check us out on YouTube. Go to Chris Arnold – Real Estate and you can subscribe over there and check out some additional content we’ve created for you.

You’re hearing story after story about radio. We rounded the corner. We’ve been around since the beginning of the year teaching radio. Now, we’ve had enough time for a student to get up, run, and start closing deals. You’ve known this guy Chad and you’re going, “This guy’s been out two months via the current environment.” Chad, I brought this up. I was like, “COVID,” and you were like, “If radio is this good during this time, I’m trying to even picture what’s going to happen next year.” There’s no question that everything we’re doing is being challenged. It’s not running at its optimal level.

Markets are being picked up and sold out, so you want to book a call and see if your market is available, pop on. At this point, there is no question. I’ve been saying it and now students are telling you that radio’s one of the best channels out there to add to your business. Go to WholesalingInc.com/reiradio. As I always tell you, begin with questions, do your due diligence, and make sure it’s a great fit for you.

I’m more excited about what’s happening in your business. Let’s look at the context. You started real estate in January 2020. You started it in one of the toughest years that you could begin with, with everything that’s going on, without question. On top of that, you got in and you got your radio set up. You’ve been on a few months. You got in and did what you needed to do. You’ve closed two transactions and you got three pending. I’m proud of you. That’s a huge deal. I’m super excited. If anything, I hope you get off this and realize you’re doing great. That’s the best way I can say it.

Wrapping up. If someone’s reading and still riding the fence or going, “I think I should do this radio thing.” You know how it is. It’s always that decision to pull the trigger. What do you want to leave the audience with? Maybe that person that’s contemplating, “Should I consider doing radio?” What would you tell them?

Examine what you want to do for your business. It’s got to fit your personality style. This one fits our personality style and I love it. It’s been a huge blessing for us and it can be a huge blessing for the readers as well if it dovetails with what they want to do. This did for us. If this fits what you want to do, do it. It’s a numbers game. When thousands and hundreds of thousands of people hear your message, people call.

At this point, you’re on 750,000 cumes. That is a lot of people.

That’s our total population. Our total cumes with all of our stations are maybe 325,000.

You’re getting a big part of the population. Your population is 750,000 and your cumes are 325,000, which is huge. You’re going to own that city. Everybody’s going to know your brand and who you are. Thanks so much for joining us. I’m super excited to have brought Chad on for him to share his story. Until next time. We will catch you soon and add more value. Thanks so much.

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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!

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