In wholesaling, there is a unique way to get deals to come to you instead of having to chase them. It’s also one of the most underutilized methods used by investors today. We’re referring to radio marketing of course. Today Grace Mills brings you an incredibly informative episode debunking the most common radio myths we hear. She addresses everything from radio cost to how to negotiate to why radio works and will continue to work.
As Grace says, the power of radio is that you don’t have to chase deals – deals come to you. Check out our REI Radio 2.0 training for more info on how to start using the power of radio today.
- (0:50) – Beginning of today’s episode.
- (5:23) – Myth #1: How much radio advertising costs.
- (7:41) – Myth #2: Radio ads are complicated.
- (11:41) – Myth #3: No one is listening to the radio.
- (18:54) – Bonus advice for negotiating.
- Want to learn more? Check out our REI Radio 2.0 program.
- To speak with Grace or one of our other expert coaches call (281) 835-4201 or schedule here.
Debunking Real Estate Myths – Radio Edition
I am your host, Grace Mills, the coach of REI Radio 2.0. I’m always excited to hop on the show. First of all, I’m grateful to be a part of Wholesaling Inc. and to be able to provide value. I am a value-add person. That’s my nature. I don’t care what room we’re in, how small, how big, how well I know someone or how well I don’t. I truly like adding value. That’s not something insane.
I’m not writing a thesis or anything for anyone but if I could offer a little humor to lighten the mood, lighten someone’s day, put a smile on someone’s face, add some info, or educate someone in any particular way on something big or something small, I’m happy to do so. What fulfills me is genuinely being able to add value. This also helps with something a little bit more personal for me.
I discussed this in the previous episode dealing with mind-shifting or the mental state in general. I’m sure some of you out there probably understand this as well. I can be my own worst critic. I’m incredibly critical of myself, and even more so critical of the things I don’t do well. It gnaws at me. If I failed at something or it didn’t work out, it tends to bother me. For me, and that’s the value-add piece of my nature, I come full circle.
I feel fulfilled when I came to share mistakes that I’ve made with someone else because then I feel like the mistake that I’ve made was worth it. It was worth me losing money. Believe me, I have. It was worth spending way too much time toying with the wrong items and not getting up and pivoting quickly enough. All of that makes sense when I hear someone else talking about their journey.
I’m like, “Let me tell you about X, Y and Z. This is what I realized worked a little bit better.” As much as I love being able to add value, this is almost value to me as well, which is being able to have a place where I can share and contribute anything that can be even remotely helpful for you. It helps me as somebody that’s super critical of themselves come full circle here.
I’m human. There are going to be things that I am highly critical about but to be honest with you, I’m incredibly confident about what I do know. What I do know is what a game-changer information can be and what that looks like in terms of people connecting it with their business, and therefore being able to truly live your life the way you want to, whether that’s an income piece or the freedom to do and to be. I love being able to tie all of those things together.
We can be our own worst critics. We can be incredibly critical of ourselves and even that more so critical of the things we don’t do well.
This episode is a little different. What I want to explore are three major things that usually are scaring people into believing that potentially there’s this marketing channel out here that they believe could work but maybe it’s not going to work. I don’t know how many of you out there are familiar with the show MythBusters. It was on for quite a few seasons. I catch a couple of the reruns.
I’m going to poke fun at myself. I enjoy reruns. I watch a lot of reruns and random things. The entire concept behind the show MythBusters is each episode, they would go around exploring and investigating these urban legends, misconceptions or myths in general around various things that they have heard about or thought they were semi-aware of or semi-educated on.
They would investigate it to the point where it’s like, “Does this have any truth to it? If it does or if it does not, where did it come from?” That happens a lot as well when it comes to radio marketing, specifically getting it set up. It’s setting up radio marketing or radio ads for the first time. As often as I end up talking to people and I’m reading comments and saying things, there are probably three major myths that come up around setting up radio marketing.
I want to take a second to deep dive into those things so that you have a better understanding of what you’re getting yourself into, and be able to help you realize this is something that’s a huge game-changer for a business. I want to be able to explore these things at a minimum and figure out where the truth lies within those myths and if there are, what you should be doing to navigate them.
Myth #1: How Much Radio Advertising Costs
The number one myth is cost. What I mean by cost is that people immediately go, “Radio marketing is expensive. I’m pretty sure that’s going to be pretty pricey to do.” Everyone has a different definition of pricey and what is expensive. Whenever I get the chance, I would like to poke at that and say, “By expensive or pricey, what are you thinking radio is going to cost you? What have you heard that it probably is going to cost to get set up?”
Most people are like, “I’m pretty sure that to make an impact or make any significance on radio, it’s going to at least take probably tens of thousands of dollars to get started.” I’m like, “Not at all.” The myth is out there that it is expensive and that it’s going to cost thousands upon thousands of dollars to get it started. I’m happy to debunk that for you. That is not the case.
You find a radio sales representative. If you call them and randomly start a conversation about it, would they try and toy with your mind and throw out some high and crazy retail price? That’s a salesperson. That’s what they do but it’s not at all that you have to throw thousands of dollars into radio to initially get started and see any impact or get started in general.
I have many students who often come in and start with about $1,500 to $2,000 a month, give or take, in their market as a starting place. They’re able to successfully secure a station, get rolling, and get leads and deals starting there. That happens. The first station I negotiated for our investment company was $1,500 a month. It was not crazy expensive. We use the concept of waiting until this station has born some fruit to prove that it is worth continuing to invest in radio.
What that meant is all of the larger stations we ended up on were on the backs of the previous station. You don’t have to jump into something expensive and large, but it is not going to cost you tens of thousands of dollars to get started in radio. You can start with about $1,500, give or take, in your actual market.
Myth #2: Radio Ads Are Complicated
The second piece of this or the second biggest myth that I hear quite often is that it’s going to be difficult to set up radio ads. “Radio ads seem cool but the process is difficult or super complicated.” It’s not complicated. It’s very easy. I’m happy to debunk that in any way that I can. The process is a lot easier than people are thinking. There are a couple of nuances here or there, and some due diligence on your side you want to do. I’ll get into that in a second. There are three basic steps to setting up radio.
You’re going to determine and select a station. You’re secondly going to call up a sales rep and negotiate it. Thirdly, once it’s negotiated, the sales rep is going to simply turn to you and say, “I got your contract ready. I want to get your ad recorded.” That’s it. The most basic terms of a radio setup are select a station, negotiate the station, and then record an ad for that actual station.
There’s a little due diligence there. When you’re selecting a station, you do want to pay attention to the target audience that works best for you. The due diligence on your side is making sure you’re clear on your target audience. Secondly, you are going to negotiate with a sales rep. I’m warning you. They’re going to play retail upfront. That’s their job. It’s your job to protect your business interests.
No one would continue selling a product like radio if it did not actually work.
You have to get some of what they say go in one ear and out of another, and be very clear that at a minimum, you understand what’s best for your business. You don’t have to be a radio expert for you to communicate to a sales representative that you’re still going to operate what’s best for your business overall. The third piece in terms of getting that set up or if I had to explain that is you are getting an ad recorded.
This may be a little difficult for some people or you may get scared away from this particular point, but this is one of the most fun parts about setting up radio. It’s getting the actual ad recorded. This is your chance. This is where you are seriously going to become that local celebrity where people hear your voice and your brand. They go, “Let me call this person. They sound like they know what they’re doing. I’ve heard their ad quite a few times.” That’s the ad. Your voice belongs on your ad.
This works in one of two ways. The sales rep is going to give you a call and say, “We got the station negotiated. I got your contract. I want to schedule you to come down to the studio here at the station and get your ad recorded.” That means you go down to their office, which is a cool experience. You’re going to get inside a booth and record your ad. Once you’ve recorded your ad, you don’t have to worry about anything else.
They all have an audio team in-house. The audio team is going to take that file that you recorded. They are going to clean it up and make it sound amazing. All you do is show up and record your actual ad copy. They clean up the rest. The other half of that is if for some reason, you’re not able to get down there or you don’t want to, you can use your recording equipment. You can record your ad at home. You can use your phone, computer or whatever recording equipment that you have available to you. It’s the same thing.
You’re going to record yourself and send the file to the sales representative who is then going to say, “There’s no problem. I got the file. I’m going to get this over to our audio team and get them to clean it up.” Once it’s cleaned up, they then call you and say, “Here’s your start date,” if they hadn’t already given you a start date. It’s very simple. It’s not complicated.
There are a couple of areas where you’re going to have some due diligence to make sure that things are tightly squared away but that’s anything that you do in business. In essence, it’s not as difficult or as complicated as people are thinking. You are going to select the station and pay attention to your target audience. You’re going to negotiate it and get your ad recorded. You get a start date and you’re running, and it’s up on air. That’s the beauty of it all.
Myth #3: No One Is Listening To Radio
Radio marketing is supposed to be a painless marketing channel in terms of everything else that you’re using. That’s one of the greatest signs of it. Here’s the third myth out there. I have heard this quite a few times and even read it in some of the comment sections. I read comments. Some of them are creative. They’re snarky but creative. Quite a few people have the idea that radio marketing is a dying marketing channel. That’s out there. I’m happy to debunk that for you as well.
You can turn on your radio station now. You’re going to hear advertisers on your local radio stations. That is because it still works. No one would continue selling a product like radio if it did not work. That means that if it was a product that didn’t work or it never yielded any results, no advertiser would ever utilize it. Think about print newspapers. Radio is one of the most traditional mediums out there. It has been around forever like print newspapers, but here’s what happened with print newspapers. It died. It wasn’t able to keep anybody interested, pivot itself, or stay relevant in any particular way. It was not a dying entity. It died off.
If radio is in that same boat, I promise you, when print newspapers died off, radio would have gone with it because it’s one of the more traditional mediums that have been out there. It’s still around because it still works. The catch here is that when you turn on your radio, you’re going to hear a lot of advertisers but you won’t hear a lot of us. By us, I mean people on the real estate side. Radio is underutilized by the real estate industry in general, especially real estate investors. It’s underutilized. You won’t hear that often. It’s not because it doesn’t work. It’s because there’s this assumption that it won’t work for them. They get scared away from trying.
That’s a slight positive because it keeps competition at bay to a degree that it scares away the right people that didn’t need to be involved anyway. That means there is a ton of room for you. There are about 230 radio markets across the United States. I’ve coached students in 48 states, but there are 230 radio markets across the US and plenty of stations within each market.
There are a lot of opportunities and options out there. No one is playing with it. For those who have potentially tried it maybe a few years ago or so, what ends up happening is they had a bad experience, a bad deal or a bad station. It put a bad taste in their mouth thinking that it was never going to work, but they didn’t understand how simplistic the setup needed to be. Something got lost along the way there.
You may say, “Grace is a little biased because she loves radio marketing.” You don’t have to take my word for it although I know what I know. The other great thing about setting up radio marketing channels is that you don’t have to do a lot of guessing to figure out if it’s a good station or not, or if that station or radio marketing is dying. That is because it is tracked. Radio stations are usually tracked by a third-party data company that is looking at the number of listeners that are listening, and even to an extent listening for how long on average they’re listening.
Your pain points and interests are completely different from those of your target audience and your prospective clients.
You’re not going into this marketing channel with no bearings of understanding how many people you potentially could hit, what the pool of people is available to you, and if there’s a way for you to ever watch the trends. That is tracked industry-wide. There are radio data companies that day-by-day track this stuff. They track trends around radio. Listenership is at the very top of it because they all have advertisers who are looking to hop on and want to make sure that they’re making an investment in something that has a return there.
That is the beauty of it. It is tracked and it is data that you can get your hands on as well so that you always have that as a base understanding. Here’s the other piece of why people start to believe that it’s a dying marketing channel. I want to make sure I hit on this as well. It’s that sometimes you start going, “I don’t listen to the radio. I don’t know anyone else that is listening to the radio. I doubt that it works.”
Here’s the catch. When you are running a business, no matter what stage you are in your business, you have to keep this in mind. You are not your target audience. You, your sphere of influence, your friends, and what you typically do is not going to be the same as your prospective clients. Your prospective clients or your target audience are coming to you because you can solve something they can’t solve. That means you have the means to do something they don’t have. Your pain points and interests are completely different from your target audience and your prospective clients.
They’re living the same life that you are. They’re waking up with the same Monday, Tuesday, and Wednesday but it’s different because of what they are dealing with. The economy is tough now for people. There are a lot of people who are house-poor. With their first paycheck, they’ve got enough to make their payment. They’re then waiting around for the next paycheck to pay the remainder of their bills. The next month, it starts all over again going paycheck to paycheck.
Although you might be the type of person listening to something like satellite radio, to a degree, believe it or not, because of someone’s financial situation, satellite radio could be a luxury. That’s not a luxury they can afford to keep in a bill. You might be in this nice upgraded car that came equipped with satellite radios. That’s a great thing for you, but considering the way the economy is and how people are looking at their finances, that upgraded car that came with satellite radio was a luxury. They had to downgrade to be able to keep their bills at bay.
That means you still have a significant number of people that are listening to the radio. You’ve got quite a few people that worked second shift, third shift, and the graveyard shift. That’s a luxury for them. They’re driving around. The radio helps them to keep them going. It is something that is at least tracked. It’s not something that you have to play a guessing game on.
I’ll quickly summarize because I always like to make sure. I love adding value for you. This is big stuff. Utilizing radio marketing is a game-changer. I’m not saying that just because I believe it. It’s because I’ve seen it. I’ve coached enough people to see the difference that it makes in their business and how it frees up their time and allows them to build their business and scale it to where they needed to be. I hate for anyone out there to think that those three myths are going to hold you back.
To quickly summarize, the first piece is it’s not as expensive as you think at all. You can start with about $1,500 a month, give or take. The second piece of that is it is not at all very difficult or complicated to set up. In the most basic sense, you are selecting a station, negotiating it, and getting an ad recorded. Is there due diligence on your side? Absolutely. That’s to make sure that you have what you need and what’s best for your business to get that set up.
Bonus Advice For Negotiating
It’s not a dying market. It’s underutilized by the real estate industry. There are a lot of opportunities and options out there, but at least you can be able to track some of that data. I know a lot of you are like, “I’ve got all these three myths but where do I apply them?” I want to make this actionable for you as well. If you are going to talk to a station or thinking about talking to a station, you have to keep that top of mind.
Keep that in the back of your head. That is a sales rep. It’s one ear and out of the other when they’re talking to you about numbers. Your sales rep is going to go full retail. You are there to protect your business interests regardless of what amazing prices sales reps are going to throw at you. It is natural in radio negotiations to haggle prices. They’re going to go retail first. You never take retail price. You always come back and have low prices.
Secondly, you do want to make sure that you pay attention to what you are targeting. If you haven’t already, start looking. It depends on where you are in your business. Start thinking of the people that you’ve already talked to and helped. If you’ve done cold calling or direct mail, think about what the conversations have been around and the pain points that some of your sellers have been talking about. Is there a pattern with who they are, so you can pin down your target audience?
If you haven’t been able to do that yet, start thinking about who is most likely to need the service you’re getting ready to offer because there are people out there who need help. You just have to pin down who is your target audience when you’re determining, and therefore selecting an actual station. This data is always tracked. You can go to a sales rep and say, “I want to gauge an idea of what the audience listenership looks like. I would like to see some actual data.” You do not ever want to jump onto a station and go in blindly with no data at all. You always want to make sure that you collect something from them.
That is usually already being tracked by a third-party company. Sales reps have access to that third-party company information, which is helpful so that you’re not verbally just taking their word of mouth because the sales rep will tell you, “This is the greatest station. It’s going to work out perfectly for you,” without backing it up with any stats. Get some stats and simply open up the conversation to say, “I would love to be able to look at some actual data to understand what’s going on with my station.” Collect that information.
Radio is not a dying market. It’s underutilized by the real estate industry. There are a lot of opportunities and a lot of options out there.
I’m going to keep it brief on this particular episode. I like to be able to share information. I also want to make sure that I get you the information that you need for yourself. This is a marketing channel that everyone knows about and very few individuals are utilizing, especially on the real estate side. Hop over to the website, WholesalingInc.com/radio and find out more information about the REI Radio 2.0 program. Book a call. We’re happy to go over any questions if you do.
This is the actual game-changer for your business. This makes all the difference. I’ve seen it. It gives you the chance to scale your business. You are getting leads that are calling you for once. You’re not spending more time on a marketing channel chasing after people. This is a marketing channel where people will call you. You get to be the expert and the local celebrity. Take full advantage of that.
There are not many marketing channels out there that will ever let you do that the way that radio will do so. Hop over to the website, WholesalingInc.com/radio and get your call booked or give us a call as well. The phone number is on the website. I’m always happy to provide value where I can. I’m happy to do so on this show. I will look forward to adding more value to additional episodes. Make sure that you stay tuned and stay subscribed to the show. I will catch you on next.
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About Grace Mills
Grace Mills is the coach of REI Radio. She has worked side by side with Chris Arnold during the initial program roll out, coaching & fulfilling student needs. For almost 8 years she’s managed and directed all marketing channels and split tested every element of Radio to help investors set up Radio in any market they choose. She has worked with investors & agents all over the United States and has helped many investors make thousands of dollars using Radio.