This is because, in Week One of the doubling penny scenario, there would only be a couple measly bucks, but by Week Three that penny would have doubled into $20,000, and then $40,000, until on Day 30, you’d have five million and change!

I bring this fun concept up because in all my years since launching REI/kit, I have seen countless investors give up on their leads after one disappointing send, and then say that marketing just doesn't work.

Now, you might be wondering, “Kuba, what in the world does compounding have to do with marketing to motivated sellers?”

Well, that’s what I wanted to touch on today:

-How marketing consistently is your magic doubling penny

-Why staying the course is so important

-Why bigger lists are not better

-How to avoid burning through your marketing budget

Marketing Magic Penny

When you first start cold calling and sending your prospects direct mail, emails, texts, and ringless voicemails, you activate your business’ growth.

At first, it’s just a trickle of responses, but as you consistently send communication over a period a week, then a month, then six months, that penny continues doubling.

Soon you’re hearing from folks that got your postcard three months ago and are now ready to sell. Or you start getting referrals from word of mouth, or people who were forwarded your email.

Over time, as you continue to saturate your area with your marketing, your prospects start thinking of you as someone that is familiar; someone who they like, and trust.

Stay the Course

I hear this all the time, “Kuba, how many sends are enough to get a deal?”

Here’s the short answer:

If you can stay the course with your marketing -- until or after the 5th mailing -- you will reap handsome rewards.

This is because the vast majority of deals (80% or more!) happen after that 5th mailing.

This is a well-documented phenomena that has been tested countless times, across all industries, from Fortune 500 companies who drop millions on marketing, to your local real estate agent distributing flyers.

Do you fall into the 90% of business owners who stop marketing after the the 1st, 2nd, or 3rd touch?

This is an incredible waste of time and effort.

What is the common culprit in that first-send scenario?

Simply put, the send was too large, and as a result, the budget was exhausted too early.

More Prospects is Not Always Better

It may seem counter-intuitive, but more prospects is not always better when it comes to lists of motivated sellers. In fact, the more prospects that you focus on, the worse your results are likely to be.

This is because often investors will start with a large list, but tap out after one or two mailings simply because they ran out of money or were disappointed with those initial results.

Avoid this fate by starting with your marketing budget and compounding in mind.

If you have a monthly marketing budget of $1,000, and it costs $0.50 to send a postcard, how many prospects do you think you can afford to reach out to, in order to maximize your results?

1 mailing: 2,000 prospects

2 mailings: 1,000 prospects

3 mailings: 666 prospects

4 mailings: 500 prospects

5 mailings: 400 prospects

6 mailings: 333 prospects

7 mailings: 285 prospects

8 mailings: 250 prospects

Sending 8 mailings to 250 leads is far more effective than sending 1 mailing to 2,000 leads. It’s simply impossible to scale to any significant results through single touch marketing.

If you want actual results for your marketing budget, you have to focus on quality and consistency, otherwise you are throwing your money away.

So -- eight touches to 250 prospects, BUT -- which marketing channel should you use, and how effective are they?

Check out this blog post to read about what it means to succeed in omni-channel marketing with direct mail, emails, texts, and ringless voicemails, and start making the most of your lead lists:

5X Your Deals: Omnichannel Marketing Secrets For Real Estate Investors

Does this resonate with you? Would love to hear what's on your mind in the comments below.

Kuba
Founder REIkit.com

Kuba F.

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Myth: More Prospects Equals Better Results

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