Alex Pardo explains the importance of targeting your marketing to hot zip codes so can be more efficient with your marketing budget.
Instead of spreading your budget too thin by mailing out to a whole area, you can target to hot zip codes (he shares how to find out which zip codes are considered hot) and include multiple follow-ups to the same leads.
Mike: Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Alex: Hey, my friend. It’s Alex Pardo from flipempire.com and I’m today’s host for the REI Classroom. And what we’re going to be doing is I’m going to talk to you about why it’s so important to go an inch wide and a mile deep when it comes to your marketing. So get ready to implement some things in your business that are going to take you a long way.
Mike: This show was sponsored by passiverental.com.
Alex: Awesome. So when I say, “go an inch wide and a mile deep,” really what I’m talking about is the area of your market that you’re focused on when it comes to marketing for motivated sellers, and also for cash buyers. So this is kind of a two-prong approach.
One of the things that I continue to hear from investors that I work with, and even investors that have connected with me through the podcast, is that they have a limited budget. Right? So they might have $500 a month to spend on marketing. They might have $5,000 to spend a month on marketing. So what I think a lot of investors do is they’ll take their entire budget and they’ll send out a direct-mail campaign. And they’ll try to target the entire county or their entire city. And they might only have enough of a budget to send out one or maybe even two mailing campaigns. And I think that’s a big mistake.
So what I want you to do going forward, try to find what are the hot zip codes in your market. And what I mean by when I say “the hot zip codes” is, where are all the cash buyer investors purchasing properties? One way to do that is, it’s. . . I’m not going to get into it in this call because you have to actually see me going through it, but I created a video for you, which you can catch on my site if you go to flipempire.com/resources. There’s a video embedded in the middle of the page there, and it walks you through exactly how to go into listsource.com, and for free, figure out what are the top five, 10, 20 zip codes in your market that have all the cash buyer investor activity.
And now, what you want to do is you really want to be a big fish in a small pond. So whatever marketing budget you have, whether it’s $500, or, $5,000, you want to focus all of your marketing on those zip codes. And again, this is for motivated sellers and for cash buyers. So I think it’s much more impactful to take whatever budget you have and make sure you send out at least four to five campaigns every 30 to 60 days, versus just kind of taking your budget and sending out one campaign or two campaigns. And that’s what I find a lot of investors do.
So I think the biggest takeaway here is to make sure that you’re marketing for buyers and sellers in the same zip codes, and you’re going to get more out of your marketing dollars, versus just trying to canvas the entire county or the entire city and not having enough follow-up campaigns, which is really where the majority of our deals come from. So again, take this tip, implement it in your business, whatever your budget might be. The first action item is to watch that video, go to Listsource, identify your hot zip codes, and then make sure that all of your marketing is focused in those areas for buyers and for sellers. And then, lastly, obviously, you want to be consistent with your marketing. Make sure that you’re sending out at least four campaigns every 30 to 60 days.
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