FIVE THINGS YOU MAY NOT KNOW ABOUT REAL ESTATE INVESTING, PART 5 – “Marketing is Way More Important than You Think.”
A few months back, there was a viral post making its way around Facebook in which people were sharing 10 things that people “might not know” about them. Inspired by the posts, I decided to write a blog series to share some of the things that aspiring investors “might not know” about creative real estate investing. These undeniable truths, while not typically part of the seminar speaker’s PowerPoint presentation, will serve you well as you navigate the sometimes treacherous waters of launching a new business…especially if that business is flipping houses.
A Quick Trip Down Memory Lane…
Part 3 – “It Does Take SOME Money to Invest.”
And now our final post in this series…
Number 5: Marketing is WAY more important than you think.
There are some people in business who think that marketing is a nuisance. There are some who think it’s a necessity. And then there are those who see marketing as more important than their next breath…and they are typically the only ones who make it. In fact, marketing and lead generation IS the “next breath” of a company, and the importance of it is impossible to overstate.
Effective marketing is the backbone of any successful business. You can be the best chiropractor in the world, sit on the board of the national chiropractor’s board, and have dozens of diplomas and certificates of achievement on your wall. However, if you can’t get a paying customer to walk in your door…it won’t be long until you’re broke and out of business. In fact, the ONE BIG DIFFERENCE between those who are successful in business (real estate investor, chiropractor, or otherwise) and those are not, is the ability to market their product or service.
Most people think in terms of being a “technician” when starting their business. They like the “do” part of the business, whether it’s baking cakes for a bakery, walking dogs, babysitting, or flipping houses. If it’s a small, one-person operation, they can earn an honest living just being a technician. However, to build a highly successful and highly profitable business, the owner must learn to go beyond being a technician to becoming a marketing, sales, and business development expert. You must eradicate the “employee mindset” and adopt a CEO mindset, or your business will stay stagnant or disappear altogether.
You’re Only as Good As Your Next Deal
I typically have anywhere from 5-7 renovation deals going on at a time, and sometimes a couple of wholesale deals in escrow as well. When I was a young entrepreneur, I would sit back and admire my own success. I would spend far too much time looking at what I was doing at the moment, and not enough time thinking about what I would be doing 3-6 months from now. So, once those few deals were completed, I would find myself with not enough deals in the pipeline, and I would have to crank the marketing machine back up again. This created a roller coast ride of inconsistent income that put damper on my business growth.
After years of inconsistency and frustration, I finally matured in my thinking in regards to my marketing plan. Even though I may have numerous deals going on at a single time, 80% of my mind share is spent on what I need to do to find the NEXT deal (and the NEXT deal…and so on). The success of today can be fleeting, and it’s my job as the leader of my company to be a visionary, and make sure the pipeline of prospects and customers is filled for years to come.
Number 1 – Look in the mirror, and say to yourself 100 times a day, “Marketing is THE MOST IMPORTANT thing in my business.” Ok, so perhaps that’s overkill…but you get the point. You can own every investing course in the world, be an expert in every strategy, and have millions of private money at your disposal…but without a real estate deal, you’re going nowhere fast.
Number 2 – Create a marketing budget. Sit down with your spouse or significant other, and decide how much money each month you can spend on your new business endeavor. Depending on your financial situation, it may require you to sacrifice a few $4 coffees, or possibly a movie night, but it’s a short term sacrifice for a long term gain.
Number 3 – Choose a marketing strategy and STICK TO IT! Too many investors have marketing schizophrenia. They try one thing for a few weeks, and when it doesn’t immediately create a deluge of leads, they move on to something else. Whatever you decide to do, stick with it for 3-6 months. If it works, and you’re making more money than your spending, then keep doing it and ADD something else, or EXPAND your marketing within that same strategy.
If you stick to your plan, and stay committed to the task at hand, you will see amazing results. Success in business doesn’t happen overnight, but if continue to do the right things, and plant the right seeds…you will undoubtedly reap an incredible harvest in due time. Go for it…and then come back and share your success story with me!
Questions? Comments? I’d love to hear your thoughts in the comment section below!