Want to reverse engineer your deal flow but don’t know how? Today’s your lucky day as no less than our very own Cody Hofhine will show you how!
While reverse engineering your deal flow can seem like rocket science, nothing can be farther from the truth. In this special episode, Cody shared how he successfully reverse-engineered his deal flow and the lucrative returns he got in return.
Cody made everything so simple, so the process is not only easy to understand but easy to implement as well. So, what are you waiting for? Tune in to today’s episode, and you’ll be reverse engineering your deal flow with utmost ease before you know it!
How to Do Consistent Deals Every Month – Reverse Engineering Your Deal Flow!
I want to break down something crucial and pivotal moment for me in my business. This is where I was able to reverse engineer how many deals I wanted. If I knew I wanted four deals a month, it’s these KPIs, the key performance indicators. Once we go over these KPIs, you are going to know exactly what it is you need to do each and every day. If you’re looking for your 1, 2, 3 deals or whatever number it is you’re looking for, we’re going to reverse engineer some numbers so that you will know exactly what you need to do so that you can get the number of deals that you are looking for each and every month.
These are going to be so around you. I’m going to give you some theory behind these numbers. This is not as if like, “Here are the numbers and this is exactly what you need to worry about.” This is why you need to track your numbers. You need to track out how many mail pieces you’re sending out and what’s your response rate. Let’s say your response rate is 1%. For every 1,000 mailers you send out the direct mail or the postcards, you get a 1% response rate that equals ten calls. You need to know these basic numbers. What’s your response rate so that you know exactly how much mail you need to send out to get X amount of calls?
There’s another number you need to track. Here’s one for example to put it in perspective. Let’s say per 100 calls so 1,000 mailers bring in 10 phone calls. If you want 100 calls, you’re going to have to do 10,000 mailers. Per 100 calls, let’s say 75 of those 100 calls are simply calling you to tell you, “Take me off your list. Quit marketing to me.” They’re mad and don’t want anything to do with this so 75 of 100 are already telling you, “It’s not going to work.” Let’s break it down more. Out of 100 calls that come in, 23 of them are maybes, “Maybe not right now.” We’re thinking about selling in the future so they are what become your pipeline. Those are the ones you’re going to follow-up on.
The people that are consistently doing deals are the ones who take a minute to break down and know their numbers.
That leaves two people to say yes and are motivated. They’re like, “Let’s do this,” or they call you back or they call off your postcard and they’re like, “I got your postcard. I need to sell any quickly. When can you come up to my house?” That’s about the statistic. Per 100 phone calls, 75 of them are saying, “Take me off the list. I don’t want to see another postcard.” Twenty-three of them were like, “Maybe but now’s not the right time,” so they’re going to be a pipeline and two of them are ready to go.
Let’s say you want four deals a month. This is now reverse engineering all the numbers or the KPIs that you need to watch and monitor because if you know these numbers, you are now able to reverse engineer what it’s going to take to do four deals. Essentially, if 10,000 postcards, it’s going to be 100 calls equals 10,000 mailers. Remember how we did that, 1% of 10,000 because that’s the response rate is your 100 calls. You get your 100 calls equals this. If you want four deals, that netted us two deals, we now need to double how much we send out.
To get four deals, you’re going to need to send out 20,000 mailers in a month. Are you tracking your numbers and making sure that your data is telling you what you need to do? Many times, where wholesalers fail is they fail using their own head saying, “Maybe I should do this or do that. Maybe I should invest in this or maybe instead of direct mail, I’m going to do PPC, do Facebook marketing, do referral program and now I’m going to do this.” They start to jump all over the place.
I’m okay with having multiple marketing channels as long as you are firing on all cylinders on the one channel that you want to master first. I’m not saying you have to do direct mail but if it is direct mail, master direct mail first and foremost. Get a team member to take over it so that you can pull yourself away from it but it’s still going consistently out each and every week. If you can master these numbers, you will then be able to bring on a second channel. Once you bring on that second channel, you’ll have to start mastering the KPIs. What does it take? How much ad spend per PPC to get a deal?
If I want three deals, you’re going to have to reverse engineer it. It took this many dollars in PPC ad spend. It took this many clicks and out of this many clicks it turned into this many deals. Know your numbers. If you’ll track these KPIs, this is how you win each and every day. The wholesalers that are winning and consistently doing deals, it’s not luck. It’s not, “This month I did 2, last month I did 0 but this next month I did 6 and then I went back to 1.” The people that are consistently doing deals are the ones that take a minute to break down and know their numbers. This is an easy key performance indicator that you can track.
Look at your past data on how much mail or marketing you send out depending on what your marketing channel is and see what it’s produced so that you can replicate it and make sure that if you want more deals, you’re going to have to reverse engineer on how many mail pieces you’re going to send out. If you’ll do this, you’re going to get your consistent deal flow.
If you’d like our help in helping you build that successful wholesaling real estate business, head on over to www.WholesalingInc.com and book your call to begin that conversation and to see if it would be a good fit. Until next time, get out there and take massive imperfect action. We’ll see you at the next show. Take care.
About Cody Hofhine
Join Cody live every Wednesday as he breaks down deals and spills the secrets to succeeding in wholesaling. Submit your questions and get live feedback so that you can execute with confidence.