Motivated seller leads represent the Holy Grail of the real estate investing world. After all, motivated sellers are already in the mindset of wanting to sell, have a sense of urgency, and are actively seeking help, all of which translates into a high degree readiness to make a deal. Finding those motivated sellers, however, is the ongoing challenge faced by anyone trying to find success in real estate investing. This is where the art and science of marketing comes into play.
I’m David Corbaley, otherwise known as the Marketing Commando, and it’s time for you to decide what kind of marketing you’re going to use in generating motivated seller leads. Is inbound marketing or outbound marketing the best choice? I’m not going to come right out say it now, but by the time you reach the end of this article, you’ll have a good idea of which way I lean and why – then it’s up to you make the decision that’s right for you and your business.
Inbound vs. Outbound Marketing
First things first – what exactly are inbound and outbound marketing and how do they differ? You might know these concepts under different names, such as push marketing (outbound) and pull marketing (inbound). Inbound marketing is also often referred to as content marketing.
Think of outbound marketing as the more old-school traditional forms of advertising, including print (newspapers, magazines, signs, direct mail, etc.), radio, and television. It’s about pushing your message out there into the world and seeing if you get responses. Inbound marketing, on the other hand, is about pulling or attracting people in by making relevant, valuable content available to people seeking it.
Inbound marketing has been around as long as outbound, but it wasn’t until the advent of the Internet and then social media platforms that the true reach and power of inbound marketing could be fully realized. In the brave new digital world of the 21st century, businesses have many inbound marketing channels open to them in the form of websites, blogs, digital newsletters, and an ever-growing number of social media networks.
Why Inbound Marketing Works for Motivated Seller Leads
One reason a lot of businesses are leaning more towards inbound marketing these days is because of the cost differential between acquiring new customers compared to retaining existing customers. Although the difference varies a lot by industry and study, research has shown that customer acquisition costs anywhere from 4 to 10 times more than customer retention (source). But this pro-inbound argument doesn’t really apply to the world of real estate investing and motivated seller leads since repeat customers are rare.
The deciding factor for me is the nature of the target audience itself – motivated sellers. Remember that because they’re motivated, they are already looking to sell, which means all you have to do is pull them in to your business, which is exactly what inbound marketing is all about.
The Cost Factor in the Inbound-Outbound Debate
What do the outbound marketing channels have in common? They’re wicked expensive! If you’ve ever paid for display ads in a print publication, radio commercials, or TV spots, you probably winced as you wrote the check. You can very quickly run through all your precious marketing resources for what seems like not very much marketing, all with absolutely no guarantee of any results. And really, that’s the biggest problem with outbound marketing in general – it always feels like a giant fishing expedition. If you don’t catch anything, it feels like you’ve wasted all those scarce resources.
By contrast, inbound marketing can be accomplished on a surprisingly small budget relative to outbound marketing. Websites cost very little to set up, blogs are easy and mostly free if you have decent writing skills, digital newsletters can look very professional without needing a degree in IT, social media postings can also be mostly free.
I don’t mean to say inbound marketing won’t cost you anything. To do it right, you either have to spend a good deal of time teaching yourself the skills you need to do it well, or pay others to help you with it. The difference, however, is that you can outsource much of the work that lies outside the scope of your own skills for very little money through the many online freelance platforms that connect freelancers and companies who need help, such as Upwork. From website design to writing to help with social media marketing, you can get a lot of valuable work from freelancers without spending an arm and a leg once you become familiar with how it works.
This kind of marketing-related expense is well worth every penny. When your goal is to pull in motivated sellers, then you have to go all out in making sure your website and blogs are fully SEO optimized so your business is the one that comes up on the first page of Google results when someone searches on related keywords and phrases.
It would also be shortsighted, however, to boil this down to a simple either/or choice between inbound marketing and outbound marketing. While I believe the nature of generating motivated seller leads for real estate investing is uniquely suited to inbound marketing, outbound marketing still has a role to play, if for no other reason than raising general awareness that you exist in your local market. And who knows, you might just get a nibble from that fishing expedition that turns out to be a major catch. When it comes to allocating your budget, however, I think it’s safe to say you’ll get a lot more bang for your buck by focusing on inbound marketing strategies and tactics.
In the final analysis, there is simply no substitute for developing your own expertise in generating motivated seller leads for real estate investing, which is why you should check out my Commando F1 Motivated Seller Leads System. It’s a comprehensive program of step-by-step instructions for driving motivated sellers to your company. Got questions? Ask them in the comments section below and I’ll be happy to answer them!