I'm looking to 'bird dog' to build capital, but I'm not in love with the usual model. I want to build a website that I don't SEO, I simply market to local investors. This website would contain a list of property leads that are high probability. Eventually I would filter the leads, and begin to add my own wholesale deals.
I would do the legwork for vacancy determination and the other things that make a good lead, but I'm not sure exactly how to capitalize on the legwork. My thoughts are:
-Subscription (I would be marketing to a minimal audience so I would have to charge quite a bit)
-Pay per lead (If the usual bird dog makes $500 per closed deal, I would instead charge for a premium per lead price for a premium lead. Whats a good number?)
-Pay at close (keep the usual $500 per close, but I'm really going on the honor system here that the investor will both track where the lead came from, and pay me if it closes)
My question is three parts. Would investors be interested in the website (I believe they would as long as the leads are high quality), and how should I capitalize? How much would you pay for a premium lead, and how would you prefer to pay for it?
Any feedback is appreciated. Thanks.
That's cool you want to bird dog, @Keenan F.
Most of mine are in lines of work already that lend themselves to coming across hidden sellers - like estate sale organizers, junk haulers, convenience store clerks, hair dressers, house & carpet cleaners and stuff.
Personally, I pay mine at closing. My scale of pay ranges from $400 for handing someone one of my business cards with their name on the back and having the seller call me to $600 for FSBO lead with the address and asking price all the way up to $1000 for more information: price, terms, reason for selling, owner info, etc they get to me.
Either way, my bird dog is kept in the loop with the sale process and the first person I see after closing. I want them to be happy! I pay cash quickly and I don't make them find me or keep them in the dark.
I wouldn't be in the market for a subscription-based website or whatever. I'm more of an old school, belly to belly guy and don't need to hunt for deals all the time anymore. I'm not your target market for that, but wanted to share how I handle mine. Good luck and stay creative!
Thanks for the feedback. So I should keep the conventional per-deal payment and just figure out a way to make it work with the website? That would be ideal to me, I'm just not sure how to make it work just yet.
-Making sure the leads are exclusive so that multiple investors aren't contacting the same property owner (at least not because of my site), but if one investor doesn't close a deal that another investor may be able to (different circumstances, more cash available at the time or whatever reason) I can link the right deal to the right person.
-How to get paid(Through the site or in person? Im marketing locally so in person wouldn't be bad)
You have or desire to have the exact model of a wholesaler it looks like. I don't wholesale much, but it sure looks familiar!
You could put your available properties online like Brett Snodgrass does. Maybe check some of his blog posts and website. I think he's in Indy.
When a seller calls me I ask whose name is on the back of the business card so I know who to pay if we close. Then make it my priority to make sure they do. How you'd protect yourself for sure is to have the properties under contract I suppose.
I know some guys who pay for quality leads and their conversion rate is very high on those. There are companies who sell leads around $500/lead but they have to be great leads to do that. 1 in 4 really need to turn into deals or no one would come back. I don't like your plan and think you will be spinning your wheels with nothing to show for it (I could be way off though and you become hugely successful, which I hope you do). I'm not sure how you will be marketing for leads any different than everyone else but if you do find that killer system why not just capitalize on that lead yourself instead of selling it off to someone else. I used to give leads away to other people as well but that won't happen again. I know how hard and expensive it is for me to get the less that I get now so no one is getting them but me.
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