What has the Highest ROI: Geographic Farming or Radio Marketing?


What would you recommend first, Radio or Discover Pubs?

Let me just talk about farming in general. And the order that I did it in was radio, and then attempting farming. I’m not getting farming to have very great results.

So I did all the due diligence that I tell you guys to do before you start something. I would not recommend geographic farming. I’m testing another thing beside Discover Pubs, so I’ve put Discover Pubs on a 3-month hold. And I’m testing something different.

I’m not going to tell anyone what it is, because I want to get results first.

Geographic Farming

Farming was the last thing I put in my business, and it should be the last thing you put into your business. It’s at least 12 months to break even if you’re lucky, maybe more like 18 months. But if you do it right, like 6 years after you start it, you could be like, “man, this is really cool. I sell 30% of the homes in this 10K home region.”

And there’s 167 sales, and you’re selling 30% of them. And you’re the guy or gal in that price point.

But unless you’re at the point where you can spend $5K a month for 12-18 months with little to show for it, I would not go down the path of farming.

Radio Promotions

Radio: If you do it right, on the right station with the right message, it’s pretty much instant. Whether you consider it bait and switch or not, we’ve got two versions of the guaranteed sell program. One is sell for free. One is I’ll buy it. I can do both.  It’s not a big deal.

Even if you have investors, you can make the claim that I’ll buy it. Even if all you have is an immediate buyout program, where you or an investor buys out the property, you can still make those claims. It’s aggressive, for sure. A lot of people don’t qualify, for sure.

But the results from radio are instant.

It will spread you thin. So if you’re the one going on listing appointments, it will spread you geographically pretty thin. But it works. It’s not the highest return I have in my business.

We had a conversation on Facebook. I spend $16K a month on radio. If I had to get rid of radio, I promise you that I could – my return is 3-4x after paying my agents on radio. Which isn’t great.

I have written gross margin this year of about $60K. That costs me about $4K a month. I’m in my 4th month. I have homes listed. So if I turn it off now, I’d have some money from it. About $5400/month.

The other went from $6K to $10K, which is the minimum buy in the station. It’s $10K a month. So radio’s not the holy grail. And you’ve got to watch it like a hawk. And it will spread you around. So I would have a back-up listing agent if you do it. And if you do it, let’s talk about it in terms of messaging and cost and those sorts of things.

Dan Ellison is also going through and considering doing it as well. Hopefully that was helpful. My answer would be radio is first, but only when you have other things dialed in. If you’re fully working your past clients, your SOI, your buyer lead-gen platforms are running, your maximizing yard marketing, you’re doing some level of direct response marketing, those things are dialed in.

And even in a lot of markets now, open houses are something that you really should be focusing on.

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