Could this (new) marketing channel be the future of Wholesaling?
As Wholesalers, we’re always looking for more deals. If we don’t have deals, we don’t have a business! If you are like most other Wholesalers, you are probably utilizing many different marketing channels.
It could be direct mail, bandit signs, door hangers, post it notes, driving for dollars or all of the above!
In today’s episode, Cody talks about an exciting new marketing channel that very well could be the FUTURE of Wholesaling. With this new channel, Cody was recently able to do one of his biggest deals to date, which was over $73,000!!
If you want to hear the details on that MONSTER deal, click here to listen to that Episode of the Podcast.
Cody’s guest shares how he uses this marketing channel to find motivated sellers with laser precision, like a Sniper. If you are a Wholesaler who has been searching for “The Next Big Thing”, you can’t afford to miss this episode.
Just be sure to keep it on the down low:-)
IN THIS EPISODE YOU’LL LEARN:
- Are the days of direct mail quickly coming to an end?
- How to find qualified leads with pinpoint precision
- The biggest mistake you could be making in your marketing cycles
- How to reach the right people, at the right time with the right message
- Getting in early: How to beat your competition to the punch
- and so much more…
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Cody: This is Cody Hoffman and I am absolutely excited to be here today. As wholesalers we are always, always, always looking for marketing channels that will bring us consistent leads that ultimately will convert to putting homes under contract. Today we have a gentleman by the name of Kylie Newbold. And when I rockstar, this guy is an absolute beast when it comes to marketing. This guy loves, loves, loves the tool Facebook. So this guy is going to break down and help us understand how Facebook, something that every one of us use, in fact, probably use too much every single day.
But he’s going to break down the power of Facebook, what it can do for you as a wholesaler. This gentleman doesn’t wholesale, he’s straight up does the marketing. Like this guy eats, sleeps and drinks Facebook. And I can tell you as a personal friend that I know him and him just taking care of my Facebook marketing. I absolutely love Facebook marketing when it comes to wholesaling. So Kylie’s going to deep dive this, help each one of you understand what it is that you need to do with Facebook and how it can ultimately help your wholesaling business absolutely explode. Kylie, how are you doing, my friend
Kylie: Cody. So happy to be here. Thanks for having me on.
Cody: Absolutely. Absolutely. So Kylie, tell us a little bit of background. I kind of let them know that yes, Facebook is like your niche. You know this like the back of your hand, but give us a little background about yourself and ultimately how you got to, how you got into Facebook marketing.
Kylie: Yeah, you bet, man. Thank you for that fantastic intro. I will send you your check in the mail for all those nice things you said about me. Yeah, I’ll give you a little bit of background. So I, Cody, you may not even know this about me. I started out my career in direct sales. My first job ever was actually selling knives inside people’s houses. So I’d go in, chop up food, you know, cut a penny, and then I’d try to sell them knives.
Cody: Did you work for Ginsu?
Kylie: No. No.
Cody: Just the knockoff company. Okay. Okay. You don’t have to mention, but that’s great. It cuts, it cuts a penny in half. All right. Keep us going.
Kylie: Yeah, I can. I can show you that if you’re ever interested. But the only reason I share that is I’ve had my fair share of pound sands in my day, you know? So I started in sales and decided I wanted to move a little further up the funnel into marketing. Because I’m so fascinated by how the nuances inside of marketing could have just major impacts. The way we change a color on a button or the message on a text or an image, et cetera. So I got into marketing. I worked in several different industries. My most recent successes with the color run, which I, I joined very early on and we grew that thing into the biggest 5k events series in the world. So went from, you know, zero events to now we hold, they hold over 130 events in 50 countries around the world, five, six million runners.
And the incredible theme about that success is so much of that, what happened on Facebook and was due to Facebook by, by leveraging the connections that people have and the way you can reach people in a very specified and a impactful way on Facebook. We just saw this massive growth and I’ve spent now, you know, North of $20 million in advertising on Facebook over the last few years. And I look at the data and analyze and, and it just got me stoked for what is possible on Facebook for some industries that haven’t even scratched the surface. And I saw that wholesaling is one of those, you know, there’s just so much opportunity that still exists out there on Facebook for wholesaling. And that’s how I got here.
Cody: Okay. This is, this is like fantastic. In fact as we speak, I’m going to like slow it down every now and again. Because there’s going to be some questions that I want the listeners to catch and kind of make it a little bit easier for us to understand, and granular approach on this. So with the color run, like what would you say is the percentage, I mean is that something you can share like percentage of leads came from Facebook versus other channels?
Kylie: Yeah, I can, I can tell you that Facebook is the biggest marketing channel from a paid marketing perspective. You know, we spend more money there than we do on any other channel. So and the percentage is following, right? So that’s where the bulk of our registrations come from.
Cody: Perfect. That is absolutely perfect. So you’ve helped do that set of a industry, like a industry built around a 5K like running event. To now all sudden here you are doing a niche with wholesalers, and helping them convert leads where they can close them, put homes under contract. So how were you able to go from one industry to now a real estate industry, such a different industry by the way. How were you able to switch around and then still be able to find success doing that?
Kylie: You know, the great thing I think about marketing, and Cody had made my career out of moving to new industries. And just, I get so amped up about dissecting how people think and what motivates them and what drives them to action inside an industry. Because what’s fascinating is, you know, at our core we as human beings, we’re very simple creatures. You know, we have needs that require a solution. And so when I dove into the wholesale market, I started just working. I live and breathe data, you know, every night I take all my data and I wrap it up in a velvet blanket and I tuck it under my pillow to keep it safe. I just want, I want to keep it safe. I love it. And, and I just started looking at data. You know, I started working with you of course and saw that there are some things I could learn.
There are some patterns I could find. And if you boil marketing down to, to a really simple formula, it’s the right message, to the right people, at the right time. And if you can find that balance, then you’ll find success, right? Because you’re giving people what they want to hear at the right time. And that’s, that’s what we’re doing with wholesaling. Because there are so many people, Cody, on Facebook every single day, you mentioned it in the intro, you know? There are stats out there, just go Google, you know how many times does someone look at their phone? Or how often is the average user on Facebook, you’ll find different stats. But it is staggering how often we pick up our phone and look at it.
Cody: Tell me those stats. Like I’m curious myself so that our listeners can, can listen to this because I’m telling you, I kind of have that love hate relationship for Facebook. I love it, by the way, when it comes to actual marketing. I think it is an absolute beast when it comes to marketing. But I also hate it because it’s, it’s on your computer, it’s on your phone and it can be an absolute dream killer. And like career killer because you spend too much time in stuff that just doesn’t make sense and doesn’t make you money. So tell us some of the stats, cause I’m, I’m curious myself.
Kylie: Yeah, I, you know, as someone who’s managed big teams in the past, Facebook can be so fantastic. And can also be a massive time suck. But I just did a quick Google search and I’m looking at it right now. So this article right here, it says that on average we visit the Facebook app 13.8 times during the day. Right?
So that means, we’re spending, and on average, we’re spending anywhere from two to five minutes there. So that’s up to an hour a day. And that, I would say there are people who are eclipsing that for sure. Just based on what I see in my own, my own newsfeed of how often some of my friends are on there. And, I think that’s important to understand though, that Facebook has become so interwoven into the fabric of how we interact, our social connections of who we are. So you know, we can kind of poke fun at it and, and look at it as a, you know, sometimes as a time waste. But on the positive side, that’s where people are connecting. That’s where they’re getting their news. You know, social media has replaced news outlets for a lot of people, for better or for worse.
But the reality is people spend their time there. And the amount of active users on Facebook, it’s massive, right? It’s in the billions. So as a wholesaler, no, not everyone that’s on Facebook needs to sell their house and wants to sell it to, to you as a wholesaler. But there certainly are people that are there. In fact, a better way to say this, Cody, the people that you are putting under contract, those people are on Facebook, right?
Kylie: They are on Facebook because you have a hard time finding someone who isn’t on Facebook, I mean they exist. But those people are on Facebook.
Cody: Okay. So tell me this, here’s where I want you to break this down. Because people will ask me all the time, Cody, like what is it that you’re doing with Facebook? And I’m like, I have no idea. Like if I could be 100% honest, I have no clue. I don’t. And, and that is the honest, I have no clue what I’m doing with Facebook. But what I do know is that Kylie knows his stuff. Eats, sleeps and drinks Facebook. And he knows what he’s doing. But yeah, I don’t, I absolutely don’t know. All I know is I spend X amount and then I look at the ROI, the return on investment and it’s always been positive. As to what Kylie’s doing, I have no idea. So tell me a little bit so I can not have to share. I can just say, hey, go to episode such and such on our podcast and Kylie will break it down for you.
Like, what is it that you’re doing? How are you able to, we have certain mail pieces that go out to certain criteria, like people behind on taxes. We have people with height equity, we have absentee owners. How are you now putting our Facebook message in front of essentially groups like that so that they can understand. Cause quite frankly I don’t even understand. That’s why I want you to kind of take control and say, Cody, here’s exactly how I do it. What is, what is that? How do you get it out to a direct niche markets?
Kylie: Yeah. Okay. So great question. When you’re advertising on any, on any channel, but specifically on Facebook, there’s a few things you have to consider. Right? And I mentioned this in a really simple way a little bit earlier. It’s the right message to the right people at the right time. So we got to find the right targets. And when I’m starting out in a new market, what I love to do is throw a couple of, you know, to use a fishing analogy, I throw a big net in the water. And that net is going to pull in some fish. It’s going to pull in some fish that we love that are our great big ones that we’re going to keep, right? Those are the deals we’re going to put in under contract. It might pull in some medium sized fish.
These are deals that aren’t quite ready to go under contract yet, but you’re going to start building that relationship and it might pull in some that maybe aren’t motivated yet. Right? And I think that happens on any marketing channel. But the great thing and you know, coming back to data, the great thing about data is the more you have of it, the more it will tell you what to do. And data will tell you a fantastic story.
But you have to be careful because data will tell you any, any story you want it to to, if you don’t know how to ask it the right questions. So we started gathering data, and based on what we’re seeing, then we start creating targeted segments. So we’ll go after some of those segments, Cody, that you’re talking about. Facebook has the ability to target people based on demographic, psychographic, income levels, interests, et cetera. So we build a lot of detailed targeting that way. And the other thing I think, well actually before I get into that, what we can also do on Facebook is we can actually target people that are already in your database. So if you’re wholesaling right now-
Cody: Hold on one sec Kylie, I’m going to stop you right there. So break this down. So like my own database, let’s say I use Podio and for other wholesalers they might be using other system, which that that is okay. So you can ultimately use data that already using within within my CRM. You can use that to now go out and do the Facebook stuff.
Kylie: Yes. Your data is a gold mine. If you are not gathering data from every person you interact with, you ought to rethink that. And the reason I say that is you can use data from people who you have closed. Leads who didn’t close, and leads who are still, you’re still working on to make your marketing more powerful on Facebook. Facebook allows me, so Cody, for you specifically, I take leads that you’ve had in the past and leads that have closed. And I tell Facebook, go and find me more people who look like these people. So Facebook will mine all of the data and say, okay, there are certain characteristics that are consistent across all of these people and now here’s a new target audience of people that match some of those characteristics. So it’s helping us create a profile of what a prime target looks like in the Salt Lake City area.
Cody: And how exact is that? Oh, before I get to that question, wholesalers, this is a gold nugget that I cannot, like we teach this to our students nationwide. The money is in the database. I cannot stress this enough how important it is to keep track of your data, to keep track of every single lead. And for this, and I didn’t even know this, Oh, we’ve only been doing this maybe what, four or five months would you say Kylie? Three months. Four months. Five months?
Kylie: Yeah. Yeah.
Cody: Okay. Before this, I’d even know that I was going to ultimately be using this database that I’ve been collecting all of our lead sources, that one day it would be helpful in targeting other leads through Facebook. But I can tell you right now if you are not keeping track of your, like your sellers, your leads, I’m telling you the money’s in the database.
Hence this might not have worked as well. It’s been working for me. Had I not had this database in place, but since I did, Kylie was able to go to town right away and start finding me some leads. Now, going back to that question, with that information, you’re able to go out and find specific people that fit those same characteristics. And then market with my, like any kind of marketing piece, or what have you found that has worked when it comes to like marketing to these people after you have found that a, is it fair to say like a look alike audience?
Kylie: Yeah, so good question. Facebook won’t give us the data on exactly who these people are, right? They’re smart. That’s one of the ways they keep us coming back. Because they say, okay, we’ve found a group of people that fit certain criteria. Now you can run targeted messaging to them. So we run a variety of things, Cody. So this is getting in now we’ve been talking about right people, you know, coming back, right message, right people, right time. Our targeting is finding the right people. The right message now is a combination of is it a still image, is it a video? You know, is it a series of images? And then what does the text say? You know, if you, if you envision seeing like a promoted post in your news feed, there’s some text, and then there’s an image, and then there’s a button. And that button is, you know, a call to action.
So this is where data gets exciting and testing is so important to be successful here. You’ve got to be willing to live in the data a little bit. And to test a few things intelligently and continually optimize. You know, I often use the analogy of a speaker when talking about digital advertising and Facebook advertising. If you have a speaker that’s playing some music and you go, man, this music is pretty good, lets make it even better. Let’s turn it up. It’s not that simple, right? Cause if you turn that speaker too loud, then all of a sudden you get some reverb or the base starts to rattle, and you lose some of the fidelity in the sound. What you have to do is you have to turn the volume up a little bit. Then you’ve got to adjust the treble, maybe adjust the base, et cetera. And that’s what we do on the creative side in Facebook. We can’t just pull a lever and all of a sudden we double our results. You’ve got to move a handful of levers at the same time.
Cody: Awesome. Absolutely. Good analogy and I’d love going back to even that fishing net. I mean you throw it out there, and I tell myself this all the time, like if I’m going to invest into a new marketing channel, whether it be direct mail marketing, whether it be bandit signs, post it notes, door hangers, or even now doing Facebook. I always tell myself, give this baby like six months time to see the data, the results from it.
Because one month is not quite enough and you explained it perfect with that fishing analogy. You throw out that net and you find some fish that are perfect fit. You find some fish that aren’t a good fit, but then with that perfect fish, you really end up finding out exactly. Instead of throwing out a net, now you’re like, okay, this fish likes this lure. And from then on out it’s like, I know how to catch this fish every single time by throwing just this lure out. And this lure won’t attract all these other fish that I don’t like. And I’ve always found this fascinating that, just give it time. I have to tell myself all the time, and I have loved giving Facebook time. The first month it was casting out that net, but you are so dialed in on my market and on my fish, right, that I’m looking for. That I am so glad that I gave it a little bit of time because it’s incredible. Absolutely incredible what it’s done for my business.