Posted on: May 17, 2021
WIP 689 | Monetizing Leads

 

Would you believe it if someone tells you you can create more money at no cost? There are indeed ways for you to monetize leads with no additional cost, just profit. Chris Craddock is the newest coach of Wholesaling Inc., and creator of the newly launched REI Revive program. In this episode, Chris will join Lauren Hardy to talk about his program and how it can help your business boost revenue with zero expenses just by having the proper strategies and processes. It is high time for you to stop stepping over dollars to pick up pennies. Tune in and learn all about how you can do that.

A Next Level Strategy For Monetizing Practically Every Lead In Your Database With Chris Craddock

Joining Lauren in this episode is Chris Craddock, the newest coach of Wholesaling Inc. and the creator of the newly launched program, REI Revive. This program guarantees to bring in leads through the wholesaling tools that will get you paid every time your phone rings.

Episode Transcription

I have one of my good friends and a Coach with Wholesaling Inc, Chris Craddock. He is the Creator of the REI Revive Program. It is the newest program launched with Wholesaling Inc. I am excited to have you, Chris. I learned so much from you already in our interactions that we had at a Mastermind. I’m excited to interview you. Welcome to the show, Chris.

Lauren, this is so cool. I have enjoyed getting to be with you over the last few months. This is exciting and I’m so excited to be here with you.

Chris and I went to a Mastermind that several very high-level investors, educators, people in our space, influencers in the real estate investing space were at. My biggest take-home came from a conversation Chris and I had in the hallway. After speaking with Chris for about an hour, I knew this guy is sharp. He knows what he’s talking about. I need to hang out with him more and pick his brain any time I get the opportunity to.

WIP 689 | Monetizing Leads

Monetizing Leads: You need to figure out which leads are good for you and which ones to pass off.

 

Thank you. Also, you, me and Rafael were the only ones waking up early to work out, too. “Come on, let’s go.”

I think me, you and Rafael are the same breed where we just have to get up and work out in the morning. We have those goals and it was awesome. We would see each other every morning at 6:30. It was a different time zone for me so in my time zone, it was 3:30 in the morning but we were there pumping iron. It was awesome. The best thing was I’ve got to know you pretty well, I’ve got to ask you some questions and you’ve got the best advice. I’m super excited to have you coaching with us. Your program, REI Revive, is something that I personally have neglected in my business. I want you to convince me to stop neglecting my cold leads. Teach me how I can monetize my leads. That’s the goal, you convincing me to stop doing that.

I love it because I have loved coaching and helping people forever. When I get to dive in and see how I can help people make a massive amount of money from what they are already doing, it becomes life-changing money for a lot of people. I know you run a big enough business then I guess the number is probably going to be a little bit staggering. When you look at it, you will say, “This is crazy.” Let’s take a look at it. Are you cool if I just dive in and ask you a bunch of questions about everything now?

I am, but at first, if anybody doesn’t know who Chris is and what the REI Revive program is about, Chris, can you give us a quick summary of what your program teaches?

When somebody calls, usually you have leads coming in at all. You can monetize maybe 1 in 20. That’s somewhere in that ballpark, maybe 2 in 20, something very small compared to how many people are calling in, wanting to sell their house. The blink test will tell us logically, if a bunch of people calls in saying, “I want to sell my house,” and you say, “I will buy it for $0.65 on the dollar,” a lot of people are saying, “I will sell but I don’t want to sell it for $0.65.” You can still do those $0.65 on-the-dollar deals as you have always done. What about all of those other deals where they want to sell in the next twelve months? They want to sell immediately but you don’t have a tool in your tool belt to do that.

What we are doing is making it so that every time your phone rings, you can get paid. You’ve got one tool in your tool belt, which is your wholesaling tool or you can buy at a discount tool. Now you can get another tool. It’s the perfect companion piece for anybody that brings in any leads. Anytime somebody wants to sell, you can make money. That’s what we do. We are in the marketing business. We bring in leads and we get paid more often. I will say one last quick pitch on why I think it’s so important before we dive into this. I have seen wholesalers who are brand new, who haven’t done a deal yet. Literally, they have been in this for months. They started bringing in thousands of dollars while they have not done a wholesale deal yet because they had people that want to sell but they hadn’t found the right wholesale deal. On the other side, in one of the biggest wholesalers in the country that I personally do a lot of business and built a lot of this program, we send them over $60,000 every single month in referral fees. That’s $750,000 a year. I don’t care how big your business is. $750,000 a year is a life-changing number.

Don’t confuse confidence with arrogance.

How exactly are you monetizing your leads? With what? With who?

The whole course is set up like this. The first thing we do is teach you to identify a real estate agent that is happy, hungry, humble and smart. If you are ever looking to hire anybody and growing your company, keep those four characteristics down because that is who you want to be in business with. Somebody happy. If they are not happy where they came from, it’s just a matter of time before they are not going to be happy with you. I have a good friend of mine. He’s a massive wholesaler. If I said his name, a lot of people would know his name in this industry. He wanted to get this thing going with his team. He said he had a good buddy of his who he thought was sharp. I said, “What’s going on?” He’s like, “He’s getting his license now.” I said, “What did he do last year?” He’s like, “He decided to take a year off.” I’m like, “Take a year off?” I was like, “I don’t know that’s the hungry person that takes a year off.” I don’t know about you, Lauren but my butt is always burning. I’ve got to be doing something. It’s that hungry thing.

What I was talking about is, it’s like when you rip open their chest and they have a heart of a lion inside, I don’t see the lion taking a year off, they’ve got to be humble. Don’t confuse confidence with arrogance. It’s two different things. That’s one of the things I love about people that listens to podcasts is they are sitting saying, “I don’t know everything and I want to learn from other people that can teach me.” That’s why I listen to podcasts all the time because there are many people that I can learn from every day, the humble part and then smart. One of my favorite books is The Road Less Stupid.

I love the book where he says, “Don’t pay your stupid tax. Don’t make the same mistake over and over again. Be a quick learner.” If you make the same mistake over and over again, then you are paying the stupid tax. I will even go one step further. The same reason why people listen to you, Lauren, is because you have a process for doing this. You can shorten the learning curve. Honestly, if somebody just says, “I need to find out myself.” That’s a foolish thing to say. You are paying a stupid tax and you pay that with your time, money and energy because you get there so much slower and more expensive than if you learn from other people. That was a long way to describe it. You find an agent that’s happy, hungry, humble and smart. Once you do that, you learn the scripts to be able to pass all of these leads off. You need to figure out, which ones are good for you and which ones to pass off. You need to pass those off to the agent in a way that doesn’t get the seller to just turn you off.

You set your agent up for success. You do your pre-qualification call. We, in our course, train your agent. The second piece is you train your agent, your business partner and you teach them how do they have their pre-qual? I do a lot of sales training. In sales training, you know that if you ask the right question, people will tell you how to sell them. They will tell you what their pain is and then you can solve their pain. The people that make the most money are the ones that solve other people’s problems. We learn to pre-qual, and then we learn that there are five reasons why every person that talks to an investor will sell with an investor versus go regular retail. We learn the script for each one of those to turn those over. We get it signed up with great commission and how to just basically get paid every time somebody is ready to sell a house. Does that explain it quickly, shortly?

WIP 689 | Monetizing Leads

Monetizing Leads: So many people across the country are throwing away so much of their profitability.

 

Basically, you are working with agents. You are giving the leads that you know you are probably not going to close and they would have sat there in your database rotting anyway. Instead, you are cutting the commission if the agent can turn the property, sell the property with the seller.

I have one client, his wife was an agent and he’s like, “We’ve got this down.” Two and a half months in he called me and said, “Chris, we have made $90,000 in the last 2.5 months that we would have never seen if we didn’t start with your course. We would have never seen this life-changing money.” My other friend, the one that we are sending over $60,000 a month to. He had tried to open brokerages. He had tried all this stuff for years and he couldn’t crack the code. Now, we have done it and he’s like, “This is unbelievable. Literally, $60,000 a month was just dead in my CRM. It was dying there. Nothing is happening with it and now, it’s already been paid for.” That’s the crazy thing, you don’t pay extra. It has already been paid for.

Something I learned is I paid a lot of money to have a very high-level CFO, look at my entire business and all my businesses. She identified something for me that I never thought to do. I’m a young business owner, still learning. I’m still new in the journey of owning multiple businesses. I’m trying to grow as a business owner. I’m trying to be more effective in my day and trying to make more money with what I have. Cutting expenses and how do I make more money with my existing business now? Something that she taught me was to separate all of my revenue streams even if you have one business.

Say you have a wholesaling company. Think of all the ways that you can monetize that company and build revenue streams. Maybe one is direct wholesaling deals and then there’s maybe a revenue stream of flips you are doing. You can create a revenue stream of JV Deals where you are the disposition because you already have a buyer’s list. I’m just giving you guys some of my revenue streams through my investment company. Another revenue stream could be, you are taking down rentals. A missing revenue stream for my company is this exact thing, monetizing my dead leads, which is shocking with how many I have in my database. I want to talk to you about what I struggle with this concept. Hopefully, you can motivate me enough to take some time to come up with a process for this. Should we get into it?

Let’s do it. Let’s just break it down in the last week then we will trap that out over what it looks like over a year. How many leads have you had come in?

I’m in four markets and I am going to talk about just one of my markets. Let’s keep it simple because I think that’s where most people would relate to that’s reading this. In one of my markets, I get about 40 leads on average per week.

If you ask the right questions, people will tell you what their pain is, then you can solve their pain.

How many of those do you pre-qual who are willing to sell at a discount like willing to go that next level in conversation?

Are you asking me how many people are willing to hear an offer or sell it at a discount? That’s a hard question.

Here’s the thing. Either one works well but let’s go sell at a discount. How many people are willing to entertain a discounted offer?

Let’s say 20 because we get 40 and then we usually make offers to twenty of them. We try to make offers to everybody but what happens is we get ghosted. We get ghosted because they realize that we are not going to pay market value. I would say 50% right there is willing to still talk to us after they know what we do.

We will get into those and want market value from the beginning right away. How many do you lock up every week? How many do you take to closing every week?

Two deals out of that.

Give me the average price point in that market.

$180,000.

There have been some lawsuits and stuff about price-fixing in commissions and everything. The bottom line is, the average agent takes 3%. We teach them to take more than that. I will just say where our market is. The average agent takes a listing at 4.2%, which is both buyer and seller. Our average commission is above 6% for us because, again, we are not having the agent conversation. We are having a what is the pain and how do we solve the pain conversation. We are going to look at this. $180,000×0.035, which is what we would want to take.

That’s $6,300 a closing. We are only talking about the eighteen. We are not talking about all of the other people that would sell to an agent or retail right off the bat. Here’s our closing percentage. If you were to take those eighteen and set it up with an agent, an average agent should close, using our program, about 25% of that eighteen. Above average, we see about 31% and our best agents are closing at 42%. Let’s take a total average agent. We are saying 18 deals times 0.25 is four and a half a week.

We said that there’s $6,300, which means every single week you have the opportunity to be bringing in, if you do this at a high level, over $28,350. That is what you are leaving on the table. That is what is going to be selling every single week that you have already paid to bring into your world and have had a conversation with them. They are willing to interact with you, raise their hand and say, “If I get the right price. I will sell if all the terms are right. I will sell if you make it easy to say yes to.” That’s the whole thing. A lot of times, people think mafia, like an offer you can’t refuse, hard to say no to. I want to find offers that are easy to say yes to. That’s what we look at.

You’ve got your wholesale deals, that business already going on. What I’m seeing right here is you have just in the one market about $28,000 a week. With the $28,000, you would keep 35% of that is what I teach. Every single week, you should be able to look around $9,800 in an average closing with what you are doing and that you are doing it at a lower level. Let’s say it takes you a while to ramp up, get a good agent and everything else. Literally, you are looking probably at $250,000 to $500,000 a year, very easily that you have already paid for.

That makes me want to jump off a bridge, which was what I was hoping you would do. I was hoping that the money would be enough to add this to a mission-critical item that I need to complete.

WIP 689 | Monetizing Leads

Monetizing Leads: When you’re picking an agent, they need to understand the upside of your relationship with them.

 

Let me ask you this question. Do you mind sharing in that market ballpark what you are spending in that market?

That’s hard because I’ve got four. I couldn’t give you a straight answer.

Let me ask this question. Are you more or less than $10,000 a week?

Less.

What I’m getting at is, how crazy is the fact that you literally could implement this and have almost all of your overhead paid for so that anything you make from here on out is profit?

I’m doing the numbers now and I’m dividing it by four because I put everything in a pot. I don’t have it broken down by market but with my expenses at least, we are talking probably $9,000 in expenses. It would literally pay my overhead expenses. That’s insane.

Right then and there, you zero-base all your marketing. Everything that you made, you keep on your marketing, minus other things but your marketing is completely paid for. To me, I’m just like, “This is found money.” I will tell a story and I have told this story before. One of my favorite stories is about these mill workers. They were milling wood and they were just barely profitable. Honestly, as I have met so many investors across the country, a lot of folks are just eking by as they are trying to break through this barrier and go from common to uncommon. The people that are making a killing in this.

They were just barely eking by, milling wood, getting wood. What would happen was, they would throw away the sawdust. Somebody got the idea that they would take this sawdust and repurpose the byproduct. They started using, press and compress it together to make particleboard. They started using it for fuel to burn. They made candles and all of these other things out of it. They could sell the sawdust for as much as they were selling the wood for. Honestly, they went from being just mildly profitable to massively profitable for stuff that they would have been throwing away. That’s what I want to teach all these investors and many people across the country. You are throwing away so much of your profitability. A lot of people are just eking by. If you could literally pay for all of your marketing, everything so that it’s at zero-base and becomes profit, how does that change your life?

What you have just said is life-changing, even for me. I’m already convinced. I think here are the things that were going through my head before talking to you. I have been doing this business for years so I have been throwing away leads for years. I don’t even know how to work with realtors in a way where I don’t know what commissions to offer. What’s attractive enough to get them motivated? How do I trust that the realtor is going to be telling me what deals that they closed out of my leads? The time to put the process together, putting the recipe together, I don’t even know where to start. The big one is the lead rating. What leads get sent to the realtor? I don’t want to miss out. What if that was a wholesale deal for us? Many things were always going through my head that were creating resistance for me, which is why I never took the time to look into doing this. I have known about it for years but I never took the time.

Let’s go through those questions because I think a lot of people are probably having those same questions. The first one, let’s talk about cannibalizing leads. That’s one of the biggest fears that people have. Here’s what we found. If you have inbound leads, people that are calling you, usually, it comes from direct mail, radio or TV, something like that. We checked in with some wholesalers and several fixes and flippers across the country. We found that five days after the offer, you have less than a 5% chance to close that deal if you make the offer and they need to think about it and everything else. Everybody is going to tell me that one story about following up for three years, closing a great giant deal and all the other stuff like that. When you realize how much money you are leaving on the table, you start saying, “Even though that was a great deal, I stepped over a lot of dollars to pick up pennies.” That’s a huge deck.

When you say that, my average contact to deal closing amount of days is about 90. The leads that we get in now close and we profit from them in 90 days. Think about it. 35 to 45 days of that is the escrow period. There is this timeline, I don’t know if I would necessarily say it’s one week for us, at least 1 or 2 months where most of our leads get closed. I could find plenty of leads in my database that came in after that. I could try to get a realtor to work.

Make it easy for people to say yes to the right things.

What I have found are the outbound leads. The ones from texting, cold calling or the outbound leads are after ten days. It’s a little bit longer than they think about it because they are not calling you so the motivation is a little bit different. It’s double the amount of time for the outbound ones, where they drop off to less than 5%. That was the other piece there. Here’s one thing that I can also tell you. If you send a mass text to every lead in your database and I will give you the text now that you just send as soon as you have the system set up it’s, “Are you still looking to sell if you’ve got the right price for your property?” Somebody gave us a bunch of old leads. We sent that text to 800 people. We set 29 retail appointments for that out of that text. That was it. A massive text and sent 29, got it done, knowing that the average is about 25% close ratio for low-level, your average level agents.

How do you know that they are being honest?

When you are picking the agent, they need to understand the upside of your relationship with them. One of the things we always talk about in sales, which I’m sure we have all heard this 1,000 times. It’s almost cliché. On their forehead, we see WIFM, what’s in it for me. That’s the whole idea there. This is what’s so weird in the investor world and the agent world, we live in these two separate worlds where we don’t understand the other side. Agents love listings because here’s why. Listings make babies.

That’s my catchphrase right there. Literally from your business alone, seeing what you are doing right here, your business can add $500,000 to maybe even $1 million of net profit. To an uncommon agent that you partner with you can grow their business because not only will the listings, they get from you create more listings but they are going to create buyers. They are going to create opportunities to bring in higher-level people into their team. You are going to break their business because they are not going to be able to handle all the leads you give them without reinventing.

As I grew with one of the companies that I talked about with my personal business, my business broke probably four times where it just fell apart. I had to reinvent it but that’s why you are looking for that are humble. We will go to people that are doing higher-level business and say, “Help me.” That’s the whole idea right there. Let’s say I make an extra $20,000 or $30,000. It’s going to cost me maybe $500,000 to $1 million a year. You’ve got to realize, it’s like the Cold War in a way.

Nobody launched a nuke because they knew that if they did it, they were going to blow themselves up. That’s that whole idea. One, we want to be in business with people that we have a high level of trust. Two, when they realize that you are growing their business like crazy, you are going to be their favorite person in the world. They are never going to want to hurt you because they know they will hurt themselves if they end that relationship.

I have another objection. Let’s talk about the next level and a person who’s not working in their business but more outside of their business. I don’t do the day-to-day stuff. I have multiple companies and I am so busy. I could not possibly imagine learning this technique, setting up the procedure and implementing it. What do you recommend for someone like me who is super busy and does not have the time to just set the process up, which would probably mean I’m going to keep putting it off?

I totally get it. I own nine businesses myself and I’m with you. I understand that so many things are calling at you all the time. Here’s what I would say. You would have your main acquisitions manager go through the course. They would do the things to choose the right agent. In just a matter of a few weeks, your system can be completely set up. The reality is there are not a lot of massive changes. It’s a lot of smaller tweaks and is huge. Don’t get me wrong. It’s not a massive amount. It’s how we phrase, what we do when we are not going to close on those leads? What do we do with those leads? How we hand them off? How do we script it, a phrase that? That’s the whole piece on the investor side, a big piece of it. Honestly, if you choose an agent, even a great agent, they are not going to close well unless they are learning their scripts and their dialogues. It’s on them as well.

It’s probably more on the agent to learn their piece like those five things, how they script it, how they dialogue and how they solve their problems. On the investor side, it is a handful of things that you are going to change in your business. It’s set and that’s the system from there on out. It’s not a lot of new stuff. It’s just some tweaking and how you do it. That agent is going to have to be on the support calls and all the other stuff to make sure that they are getting their scripting right. That’s the difference between closing at a high level and closing at a low or moderate, even a level where it’s not even worth your time is, how good is their script?

You definitely convinced me. When you said $9,000 a week per market, you had me at that. I did the math. If it’s $9,000 per market, per week you were saying and I’m in four markets. For you guys that are in multiple markets, that’s $36,000 just a week. That’s $144,000 a month. Are those realistic numbers for someone like me?

When you look at the people that have been doing it and doing it absolutely well, the biggest key is choosing the right agent and making sure that your people follow the process. That’s just it. One of the biggest tools for your people, you’ve got to never use the word realtor. If they think you are passing it off to a realtor, their brother’s uncle is a realtor. They don’t want to talk to their realtor. Everybody knows 400 realtors. There are more realtors that there are active listings now in the market. There are homes for sale on the market. You just got to make sure that it’s done right and well. Pick the right agent. I guarantee you, the people reading this, a lot of them have tried doing stuff. They probably had mixed or okay results. My guess is they don’t have an agent that’s happy, hungry, humble and smart. They don’t have the path to shorten the learning curve. The learning curve was so big that they didn’t have a lot of success at first and then they said, “We are out.” They didn’t know how to phrase it and script it right, and how to talk to the sellers in a way they wanted to be talked to.

You have blown my mind just in this short episode. I’m definitely motivated now to make this a mission-critical item because the amount of money I’m throwing away makes me sick. Chris, how can people that are reading this learn more about REI Revive?

You can go to WholesalingInc.com/revive. That’s a big piece right there. I try to work on my Instagram @Craddrock. I have been trying to respond to any DM on there. If anybody has any questions, I’m happy to do that. If you go to the website, we can get in and see if this is right for you and your business.

Thank you so much for sharing your knowledge with me and having this little strategy session. I’ve got a lot out of it. I’m sure anybody that’s reading did, too. Thank you for joining us. I’m very excited for REI Revive and to see all the people that you are going to be helping through this program.

Thanks so much for having me. This is awesome.

Thank you so much for reading. Until next time.

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About Chris Craddock

A nationally certified Life Coach with a Doctorate in Leadership, Chris Craddock is the driving force behind REI Revive, the host of the Uncommon Real Estate Podcast, a Realtor, and an entrepreneur who runs multiple successful businesses in the Washington DC Metro area (and Richmond, VA). Chris is a consistent NVAR multi-million dollar producer who produces over $4 Million in commission each year.

In 2020, his team, The Redux Group, was #20 in all of Keller Williams and sold just under $160 million in volume. Chris has been married for 20 years and is the proud father to six beautiful children.

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