You’ve followed all the steps of wholesaling (virtual or otherwise) down to a T. You’ve invested in all the tools and mentorships you need. However, you’re still not getting any deals closed. Ever wonder what it is that you might be doing wrong?
In this episode, Virtual Investing Mastery’s coach Lauren Hardy discussed what might be hindering you from getting those seemingly elusive deals.
In this short but very meaty episode, Lauren covered all the basics of sales funnel management—one of the key elements of the wholesaling business many people don’t get to manage accordingly.
If you are doing everything you can but you’re still not getting the results you are looking for, this episode is exactly what you’re looking for!
Wholesaling Q&A – How to Stop Lighting Your Marketing Dollars on Fire!
I am super excited about what I’m going to be talking about because it’s one of my favorite things, sales funnel management. I’m going to read a letter that I got from somebody who was asking for help. The reason I wanted to read this letter is that I get this question all the time. I know you guys are dealing with the same frustrations and the same questions, so it would be awesome to do an episode where I am reading the letter and I’m giving you guys my answer. I’ll get right into it.
“I am so interested in virtual wholesaling and I’ve taken some steps already and paid a lot for other mentors and programs within the past year. I know all the steps to it and I have already taken action with it as well. However, I was not able to get my first deal done. I am a mom of two girls just like you and I would love to implement this business and grow into real estate.”
“Just so you know, I have access to all the software, including REI Automator, Mojo Dialer, Batch Leads, etc. I’ve been paying the fee to have access to them all. I have generated some lead lists already, but I’m stuck at this step as I am done with sending all the text blasting and receiving some responses. Mostly, they’re not interested. My question is, how would I move forward from this point on? My budget is limited to spend in order to make any new marketing and I don’t like to feel disappointed either.”
Here’s my answer. It seems like this reader does not have an issue with lead generation. She took a ton of action and she went after it when it comes to lead generation but what it does sound like is she needs some coaching in her sales funnel management. I see this all the time. In our business, a lot of people get into it because they want to get into real estate, but they don’t have any previous sales or marketing experience.
In this situation, it is sales intensive and you do need to hone in on your sales management systems. There are a lot of amazing books out there and a lot of free information to get better at your sales skills and I advise that you do that. Take some time to hone that craft of sales, but most importantly, you need to learn how to manage your sales funnel and that is what I’m going to focus on in this episode. I am going to talk about the sales funnel.
Our reader who wrote this letter told me that she’s doing the lead generation activities, but she’s getting the people that are not interested. It sounds to me that she doesn’t know what to do next. She generated leads, but now what? I find it hard to believe that she got no seller leads. I’m sure she did in the pile of the people that she either cold-called or texted, but she doesn’t know what a lead sounds like.
Take some time to hone that craft of sales. But most importantly, you need to learn how to manage your sales funnel.
The first thing that you need to do in sales funnel management is you need to identify what you are going to consider a lead. I’m going to do that work for you. A lead is anybody that says, “Yes, I want to sell. Yes, I’d like an offer for my home.” If they say yes, that person needs to get entered into the funnel. I get it. There are a lot of ways a seller might say yes that confuses people. I am sure if you guys have done any lead generation, you know what I’m talking about. There are answers, “Anything’s for sale at the right price. Yeah. Sure, I’d sell it for insert extremely high price here.” There are those obvious ones that are like, “I do want to sell.”
Of those three examples, which one is the lead? Which one are you going to put in your sales funnel? The big mistake everybody makes is they only put that last one that says, “Yes, I’d like to sell.” While you are doing that, I am putting all three into my funnel because they all had one form of yes. I don’t care that they were being sarcastic. They still go through the process and I’m going to tell you why in a bit.
Your next step in your sales funnel management system is you want to get that person on the phone. I would put all three of those people into my funnel, which is my CRM and I’m going to try to get those people on the phone, all three of them. It’s at this stage that some of the three are probably going to disqualify themselves because they are not going to want to get on the phone with me because they weren’t being serious.
I might have three that go into my CRM, but it turns out that only two of them got on the phone with me. After I get those two on the phone, I do what’s called qualifying. I give them my seller qualifying script. Everybody on my team knows the seller qualifying script. Those two sellers would get a call from one of my sales representatives and they would go through the seller qualifying script with them.
Now, of the two, you might find that one seems a little bit more motivated than the other. The one who said, “Yep, I’m ready to sell,” might be the one that sounds more traditionally motivated. What you don’t realize is the one that said, “Yeah. I would sell, but for a high number,” they could be motivated too, but you don’t know yet until you talk to them a little bit further.
Even though they have a high price in mind, it might be that they need some education. They need you to educate them on the pricing in that particular market. I can’t tell you how many times I have had sellers tell us that they want some extremely high price for a property, but after a few follow-up calls, after a few months, they’ve completely changed their mind and they come down to a price where we could do the deal with them. Usually, that’s because they start shopping around and they realize that the price you gave them was fair.
On average, you will make offers on about 50% of the leads you generate. It only goes down to 50% because people won’t pick up the phone or they ghost you.
If you are the one who continuously follows up with them, they are going to choose you, because believe it or not, most of your competition is going to stop after the first time they speak with them. Most of your competition does not have a good sales funnel management system, but since you read this, you now do. Keep following up with that seller because what you’ll find is that the seller may have gotten multiple offers, but none of those investors followed up with them. You are going to be the one that calls them every couple of weeks and you are going to call them at that right moment when they’re finally ready to make a decision and sign a contract to sell their home.
I see this with my students and with people who are my readers. To put this into numbers, a common thing that I see, they will have, say, 100 leads and of the 100, they will only make twenty offers. Believe it or not, I even had some of my friends who I know are pretty successful in this business do this exact thing and when times start getting tough, they come to me and they’re saying, “How are you still closing all these deals in this market?” I ask them, “How many leads did you get and how many offers did you make?” They’re only making offers on maybe 20% of the leads they generate.
That is lighting your marketing dollars on fire. On average, you are going to make offers on about 50% of the leads you generate, and the only reason it’s down to 50% is that the other 50% won’t pick up the phone or they ghost you. After you make offers to anybody that will listen to your offer, you need to continuously follow up until they tell you to stop following up or they get a restraining order. I’m only kidding about the restraining order, but for real, keep following up with them.
You have to decide what’s appropriate for your follow-up system by talking to them, so if they say, “I need a month to think about it,” give them a month. That’s fine. If they say, “Follow up with me in a week,” follow up with them in a week. It’s better to follow up more than less. I would start with following up in about a day or two when you first make the offer to check-in, and from there, you decide or gauge what is an appropriate follow-up pattern for that seller.
That’s it. That is your sales management system, all in a short episode. I hope you loved this episode. I know that you are going to get a ton from it. If you like this content, I want you to check out my coaching program because I’ve got so much more to share. You can go to www.VirtualInvestingMastery.com. You can fill out an application there and somebody will get back to you. I am coaching with Wholesaling Inc. and I coach all things virtual wholesaling. Thank you so much for reading.
About Lauren Hardy
Lauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.
Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.