4 Steps To Become A Marketing ROCK STAR In Real Estate Investing

Investing in real estate can be financially fun and rewarding. You hear the many stories about how people are able to find these great deals and make a ton of money off of them, but in these stories you don't hear many people talking about what it took to get to that big payday. Sure I do believe that the stars align perfectly for some people to drive down the street and break down in front of a house where the owner is running out the front door to give them the deed to their free and clear house. However for the vast majority of investors, it doesn't work that way. There are ways to find leads for free, but to find good leads, money may have to be invested. As a result, if you are not carefully monitoring your investment, your real estate investing career could be short lived. Below are a four ways to keep your marketing budget under control while investing in real estate.

Determine Your Max Investment Amount

Selecting a maximum amount to invest into marketing for your real estate business is probably one of the most important things you need to do. Yes you can make that money back when you land the big deal, but in the meanwhile you have to eat. My wife doesn't want to hear that I spent the grocery money on a direct mail campaign!! It is very important that you plan your marketing around what you can AFFORD to do without because marketing is an investment of risk. Sure, there is a direct correlation between the amount of money you spend on marketing to get leads and your response rate, but you have to be smart about it.

Examine your monthly take home income and make sure that all of your primary living necessities are taken care of first such as food, clothing, and shelter. Then ensure that those essential items that make life easier to live are taken care of as well. Example: Sure my wife can get up at 3 am to walk the 15 miles to her job every morning, but how many of you know that it would not be wise thing for me to let happen. Therefore I will make sure that she has a car and that there is gas in it for her to get to work. These essential items would also include utilities, mobile phone, and the like. Once all of the essential expenses are covered, then start looking at what you have left. This may mean cutting out some of the non-essential items like trips to the local pub or golf lessons, but these are items that truly allow you to do some soul searching to see how bad you really want it. So depending on the amount left over, you can determine how much you want to spend on marketing. This number will be your magic number until you start raking in the big dollars.

MARKETING DOLLARS = (INCOME - (NECESSITIES + ESSENTIALS))

Select Your Marketing Methods

Now that you have decided your marketing investment number, it's time to figure out how you are going to spend it. There are countless ways that you can advertise your real estate investing business: Direct Mail, Bandit Signs, Google Adwords, Facebook Ads, Billboards, Radio Ads, Television Ads, News Papers, etc... You get the picture. There are some methods that are dirt cheap to do while others are pretty pricey. It is important to evaluate each method and determine if it is right for your budget. So for instance, if you have $200 left over after subtracting necessities and essentials from your income, chances are that you will not be advertising your business on the radio. Advertise within your budget and do not go over even one cent! Of the methods that are within your budget, select the one(s) that you feel will give you the most "bang for your buck". So with $200, you may consider putting out a few home made bandit signs in your neighborhood or sending a few direct mail pieces. Do not be discouraged if you don't have a multi-million dollar advertising budget. Not everyone does especially when they are starting out. If you are a good steward over what you have, you will enjoy steady increases in your marketing budget over time.

Create A Budget & Stick To It!!!!

It is important to create a marketing budget, not just to police your spending, but to also track your spending. In this budget you can identify the costs of various advertising methods and enter budget amounts for one to three months at a time. When you get your numbers for each method and month, STICK TO THEM. Even if you receive a big check on your first deal, I would advise you not to override your budget. Exercising discipline will help you to be a better business person.

As mentioned earlier, a good budget is also helpful for tracking your spending. Maintaining your budget for at least a year gives you some good insight into how your are spending your marketing dollars. Metrics such as ROMI (Return On Marketing Investment) can be used get a true picture of how your campaigns are working and will create a foundation for longevity in your business.

Re-Evaluate & Re-Invest

So you've been a good marketeer and you were able to stick with your budget. The family is not missing any meals and the lights are still on. Let's say you've gotten a few leads from your campaign but none of them produced a deal. Is it time to re-evaluate? Not necessarily...It could be that the campaign needs to run longer to produce some quality leads. Maybe you haven't found that gem in your list of leads. Don't risk blowing your budget because results aren't coming as fast as you want. However, if there are other methods you can use such as getting a part time job to help cover additional marketing expenses then go for it.

"Our patience will achieve more than our force." - Edmund Burke

OK now let's say, you've gotten a deal and received a big fat check!! What now? Do you throw all of it at your marketing? I would advise NO! You and your family have earned that check. Take them out to dinner and celebrate the new blessings. Put some of it back into the business only after re-evaluating your financial position. Real estate investing is an activity that many people enjoy to the fullest. If done right, life will get easier, not harder.

Conclusion
As a final note, having extra money to invest in real estate marketing is great because you can really hit the ground running to fund your business. However, even if you are flat broke, you can still have a great career in real estate investing. You just have to work a little harder until you get that first deal. Regardless of your circumstance, the real message I want to get across is to be responsible when running your business. I've seen many business fail because they are stuck on the idea that if I throw everything I have at my business, I will succeed and although that has been the case for some, it is not so for the vast majority of business owners. Instead learn the values and skills that can shape you into being truly wealthy.

Recommened Book:
The Millionaire Next Door - Thomas Stanley & William Danko

Happy Investing!!