Wanted to bring up a discussion regarding another under-discussed topic amongst wholesalers (you can check out my marketing one about probated vs other leads and how to get them)
The topic: THE 80/20 PRINCIPLE... and how it applies to certain strengths in weaknesses.
Amongst wholesalers, if you're experienced at least, you know that wholesaling is marketing and sales. Marketing being more valuable, but sales being the driving force of super success or average.
So how does this apply to 80/20 (Pareto's law)?
well by focusing on the 20% that's going to create 80% of the results. While expanding my personal business along with a business partner to 6 figures/month over the course of a year, the biggest thing I learned was maxing your strengths and outsourcing your weaknesses.
My strength, for example was marketing, his was sales. Be honest and rate yourself from 1-10... if you're a 10 in marketing but a 4 in sales, instead of losing deals and higher spreads to "learn the ropes", you can max out on what you're good at, bring that value to the table and find a 10 in sales.
This goes with everything among the business...
We realized we sucked at initial calls so instead of getting better, we focused on hiring the best at initial calls, and this was one of our best hires. we went from 10 deals/month to 20 deals/ month almost by the next month after the hire.
We did this again on the title side, and it freed up our work load to almost half it's size.
Moral of the story provide value with what you are good at, value exchange and partner with someone, or hire people to fill the spots you aren't optimal in.
Doing so allowed me to create a virtual wholesale system in other cities (right now we are looking for the best wholesalers in San Antonio to expand to also) by providing my value: prescreened high quality leads, to good wholesalers... we split 50/50 they get leads ready to sign, I take on the marketing and screening, they create the bigger spread than I could, I cover marketing costs, they get 50% equity split on leads that were free to them... that's a win-win-win... allowing us to expand to as many deals/month the experienced wholesaler can handle. Right now, in Austin, this system has created an extra 10 deals/ month in our business, and a free 10 deals/ month in our partners in Austin.
That's literally $50,000/ month extra on average for the both of us, just by using this 80/20 and maximizing what each of us is good at. That's efficiency and creating winning systems.
Let me know what you guys think and let's start a good discussion!
sounds like you will get bombarded by those that want to join your team.. although I was just at an event and the wholesalers that were working Austin said it was pretty tough and they were moving to Houston :)
Great job Troy Lilly, congrats to you and Joel!
Hi Troy, Wish i am in San Antonio market. I love your model.
Great post! I'm really looking to start out sourcing my weaknesses so I can appreciate what you are saying.