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!
- Why you need to track your numbers
- Why you need to know your response rate
- Where wholesalers fail
- Why you need to master one marketing channel first
- Why consistency is the key to your success
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
Hey guys, Cody Hofhine here with Wholesaling, Inc. The number one wholesaling coaching program in the nation, and I’m here with you today because I want to break down something that was crucial, that was a pivotal moment for me in my business. This is where I was able to really reverse engineer how many deals I wanted. So, 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. So, you can get the number of deals that you are looking for. If you’re looking for your one deal, two deals, three deals, 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.
So, let’s break this down right now. These are going to be so around you. I’m just going to give you some theory behind these numbers. This is not as if, like, “Hey, here’s 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. So, let’s look at a couple of things. Let’s say your response rate is a 1% response rate, for every 1000 mailers, you send out, the direct mail, the postcards, you get a 1% response rate that equals 10 calls. So, 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. And then there’s another number you need to track. Here’s one, for example, just to put it in perspective. Let’s say per 100 calls. So, a thousand mailers brings in 10 phone calls. So, if you want 100 calls, you’re going to have to do 10,000 mailers.
So, a per 100 calls, let’s say it breaks down like this, and only you will know these numbers exactly for your business, but here’s a perfect example of what I would track. Per 100 calls, let’s say 75 of those 100 calls are simply calling you to tell you, “No. Take me off your list. Quit marketing to me.” And they’re just mad. They don’t want anything to do with this. So, 75 of the 100 are already telling you, “Nope, it’s not going to work.” Let’s break it down more. Of the 100 calls that come in, 23 of them are maybes. Maybe just not right now. So, yeah, we’re thinking about selling in the future. And so they are what become your pipeline. Those are the ones you’re going to follow up on. That leaves two. Two people that say yes and motivated. They’re like, “Yes, let’s do this.” Or they’d call you back, or they call off your postcard, and they’re like, ” Hey, I got your postcard. Yeah. I need to sell, I need to quick. When can you come up to my house?” That’s about the statistic.
Per 100 phone calls, 75 of them are saying, “Nah, and take me off the list. I don’t want to see another postcard.” 23 of them were like, “Maybe just now is not the right time.” So, they’re going to be pipeline. And two of them are ready to go right now. So, we got those two. Let’s say you want four deals a month. This is now reverse engineering, all the numbers, the KPIs that you need to watch and you need to 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, we’re going to do this, 100 calls equals 10,000 mailers, and remember how we did that. 1% of 10,000, because that’s the response rate, is your 100 calls. So, you get your a 100 calls, it equals this. If you want four deals that netted us two deals, we just now need to double how much we send out. So, to get four deals, you’re going to need to send out 20,000 mailers in a month.
Are you tracking your numbers? Are you making sure that your data is telling you what you need to do? Because so many times where wholesalers fail, they fail using their own head saying, “Oh, maybe I should do this, or maybe I should do that, or maybe I should invest in this, or maybe instead of direct mail, now I’m going to do PPC. And now I’m going to do Facebook marketing. And now I’m going to do referral program. And now I’m going and do this.” And they start to jump all over the place. Now, With having multiple marketing channels, as long as you are firing on all cylinders on the one channel that you really 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, because if you can master these numbers, you will then be able to bring on a second channel.
And then once you bring on that second channel, you’ll just have to start mastering the KPIs. What does it take? How much ad spend per PPC to get a deal? Now, if I want three deals, you’re just going to have to reverse engineer. It took this many dollars in PPC ad spend, and 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, these are how you win. 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, “Hey, this month I did two, and last month I did zero, but this next month I did six. And then I went back to one.” The people that are consistently doing deals are the ones that take a minute to break down their numbers and know their numbers, and this is an easy key performance indicator that you can track right now. Look at your past data, look how much mail you send out or how much marketing you send out, depending on what your marketing channel is and see what it’s produced so that you can just 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 on helping you build that successful wholesaling real estate business, head on over to www.Wholesalinginc.com and book your call today to begin that conversation, to see if it would be a good fit. Until next time, get out there and take massive imperfect action, and we’ll see you on the next show. Take care.