How to Gauge a Successful Offer Campaign (CFFL 381)

How to Gauge a Successful Offer Campaign

Jack Butala: How to Gauge a Successful Offer Campaign. Leave us your feedback for this podcast on iTunes and get the free ebook at landacademy.com, you don’t even have to read it. Thanks for listening.

Jack Butala:                            Jack Butala with Jill DeWit.

Jill DeWit:                               Hello.

Jack Butala:                            Welcome to our show this Monday. In this episode, Jill and I talk about how to gauge a successful offer campaign. There’s a bunch of ways. Before we get into it, let’s take a question posted by one of our members on the LandAcademy.com online community. It’s free as always.

Jill DeWit:                               Okay. Cool. I love that. We have our staff, they put little notes in here too, about the people who ask these questions. This person, she is newer to our group and what I really like, is she’s very vocal.

Jack Butala:                            I love that.

Jill DeWit:                               She’s very vocal in SuccessPlant, our online community. She’s very vocal on our weekly member calls and I can already tell Katrina’s going to be great because she’s not afraid to ask questions.

Jack Butala:                            I love it.

Jill DeWit:                               She’s like, “Okay. I’m a third of the way through all the education. I have a question about these three things.” I’m like, “God, this is so good.” She’s got good questions and more importantly, not afraid to share them or ask them. Thank you, Katrina. We are really glad that you’re here.

Jack Butala:                            Hey, there is such thing as a stupid question.

Jill DeWit:                               Yeah. There is such thing as a stupid question. Good point.

Jack Butala:                            I haven’t seen a stupid question out of this group, I mean, probably been in a year.

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            Even the people who are not members. The stuff that they’re coming up with, is really, I learn.

Jill DeWit:                               I think there’s two things going on.

Jack Butala:                            I swear I learn more than the new people.

Jill DeWit:                               I think one is, our group is smart and they know to do some homework a little bit before asking some questions, which I appreciate.

Jack Butala:                            Me too.

Jill DeWit:                               It’s almost like saying, you’re standing somewhere, “Where’s the exit?” Oh, and you turn around and it’s behind you. Well, let’s take a moment. First turn around and then ask.

Jack Butala:                            Do you know what I’ve noticed, because I do, all Wednesday I do consulting calls and calls for our members and what I’ve noticed with one thing is that the predominant underlying theme with the people that pull the trigger on joining this group, is they’re just fed up. They’re fed up with something else.

Jill DeWit:                               That’s funny.

Jack Butala:                            They’re fed up with running their own company.

Jill DeWit:                               Always avoiding relationships.

Jack Butala:                            Oh, yeah. Oh, yeah. Anything. Maybe it’s all of it.

Jill DeWit:                               Kids.

Jack Butala:                            Right. Being fed up is a good motivator. It is for me.

Jill DeWit:                               Shucks. Since we’re talking about that, it just made me think of the movie that we saw the other day.

Jack Butala:                            Yeah.

Jill DeWit:                               The times that he snapped, he got stuff done. I’m talking about the movie The Founder …

Jack Butala:                            Ray Kroc.

Jill DeWit:                               … about the McDonald’s and Ray Kroc. We both went into that going, “Yeah. I don’t know if this is going to be a good movie or not but let’s check it out,” and we both went, “That was a great movie.”

Jack Butala:                            Yeah.

Jill DeWit:                               We really enjoyed it but yeah, the times that he just got fed up, he just sudden snapped.

Jack Butala:                            Yeah. It’s called The Founder. It’s about the story of McDonald’s, the restaurant. Michael Keaton’s a main character. Start to finish, great movie.

Jill DeWit:                               Mm-hmm (affirmative). Exactly. You would lean over and go, “Watch it.”

Jack Butala:                            He was fed up. You’re right, Jill.

Jill DeWit:                               “Watch, he snapped and now things get done.” I’m like, “You’re right.”

Jack Butala:                            Yeah.

Jill DeWit:                               Then, you’d lean over and go, “See, this is what happens to me.” I’d say, “Yeah. You’re right.”

Jack Butala:                            Just, a lot of people think it’s just all peaches and cream.

Jill DeWit:                               No.

Jack Butala:                            Oh, yeah sure.

Jill DeWit:                               No.

Jack Butala:                            The bigger the companies get, these companies that we have and our members are saying this, the more you have to start locking stuff down.

Jill DeWit:                               You do. That’s true.

Jack Butala:                            You know? There’s a time for having fun and we do that on the show …

Jill DeWit:                               Oh. Totally. Every day.

Jack Butala:                            … and there’s a time to get some work done. They usually, I’m sorry to say this on the air, they usually don’t meet. Work and play, at the same time …

Jill DeWit:                               That’s true. It’s hard.

Jack Butala:                            … that’s just not the way it is.

Jill DeWit:                               It’s very hard.

Jack Butala:                            It isn’t for me anyway.

Jill DeWit:                               My other thing I was going to say about our group is, it’s like at sports teams, you play to the level of your opponents. I think people are showing up and playing up because of our group.

Jack Butala:                            Yeah. Well said.

Jill DeWit:                               They’re really thinking things through and it’s really good. I’m glad. Back to the question. Thanks.

Jack Butala:                            All right, Katrina.

Jill DeWit:                               Thank you, Katrina and everyone. “Should we be scrubbing against owner demographics like years of ownership, in-state/out-of-state, age? Which, by the way, in case you couldn’t tell, we have all that at our fingertips.”

Jack Butala:                            Yeah. Again, this just reiterates exactly what we were saying. This is a PhD level question and she’s a brand new member. She’s obviously come to us with some experience or some frustration.

Jill DeWit:                               Right. Or, she’s smart.

Jack Butala:                            Which is good. Yeah.

Jill DeWit:                               All of the above.

Jack Butala:                            What Katrina’s asking, listener, is we send out a lot of letters. We send offers to owners to see if they want to sell their property. One of the things that makes us incredibly successful over a lot of other groups that try to do the same thing, is that we scrub data well.

We take the Assessor’s database, right from our sources and we scrub out the people we don’t want to get an offer because we’re spending 50 cents an offer. We don’t want to send offers if we just know they’re never going to get to the right … There’s no chance of it.

She’s asking, in a very incredibly intelligent way, is there more that I can scrub out to make this even more efficient? Like ownership, in-state/out-of-state. What ends up happening is that people come to us from all places. A lot of it’s house-flipping and if you’ve ever sent a mailer out to flip houses, out-of-state is a big issue. Vacant houses, maybe there’s more likelihood that they’re going to take your offer.

For us, I’ve found that that’s not the case. Out-of-state ownership for land, because it’s not the primary residence anyway, doesn’t matter. Age certainly does not matter. The age of the deal or the age of the person, I don’t know how she’s getting that data.

Jill DeWit:                               Right.

Jack Butala:                            Then, years of ownership and all that stuff now. In the program, if you follow the program Katrina, the cash flow from Land program, which you have, you’re going to do fantastically well. A couple of hundred people before you are seeing some serious results.

Jill DeWit:                               Good question but not necessary.

Jack Butala:                            Keep them coming because …

Jill DeWit:                               Yeah.

Jack Butala:                            … at some point, you will. I can tell with this personality. She’s going to ask a question and I’m going to say, “I never did that. Man, I’m going to try it.”

Jill DeWit:                               Right.

Jack Butala:                            You know?

Jill DeWit:                               Yeah. Perfect.

Jack Butala:                            If you have a question or you want to be on the show, reach out to either one of us on LandAcademy.com. Today’s topic: How to gauge a successful offer campaign. I came up with this topic because I, again, had a Wednesday consulting call with a long time member and he had a lot of questions about this exact topic. Like, “Once I get it out of the mail and the whole thing’s happening, how do I know it worked?” That’s a great question. He’s been in the business for quite some time.

Jill DeWit:                               Yep.

Jack Butala:                            Man, that’s a good question, so we decided to turn it into a show and Jill came up with a bunch of cool stuff right before we started.

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            Go ahead, Jill. What do you think?

Jill DeWit:                               How to gauge, there’s a couple of things. Results. Really, when I say results, it’s not just the number of responses but the type of responses. That’s how I see it be gauged. When you have enough people come back with signed offers, not too many, but they’re coming back with signed … If every single one of your offers comes back signed, you probably offered too much.

Jack Butala:                            Oh. You priced it too high.

Jill DeWit:                               Exactly. If you get nothing but bad, bad stuff, it’s not necessarily a bad thing. I don’t know. Do you know what’s funny? I know, Jack’s going to share some experience where it wasn’t good.

Jack Butala:                            In the universe of … Here’s her topic. Ever first time, you send it out the first time, here’s the reality grassroots of it. Let’s get right down to it. The stuff goes out in the mail, the mailing company that we use right now, which is the best one I’ve ever experienced gets it out the same day or the next day.

In about a week or less, for you’re sitting there, there’s silence. “Oh my gosh. This didn’t work? I must have screwed something up. I don’t know if any mail got out.” The mailing company that we use, provides a tremendous amount of feedback with your username on the website. You can see when the mail got delivered and all that. This is a first time for us, actually and it’s only a few weeks old and it’s nothing but positive responses.

You’re sitting there, twiddling your thumbs, wondering if you made a mistake, then all of a sudden it hits. In the universe of possibilities, here’s the things that can happen: You can get a lot of people calling you back that are angry as Hell because you sent them way below … That’s going to happen. Some number of people always call you back. We call it the haight, like H-A-I-G-H-T, like they haight Ashberry.

Jill DeWit:                               That’s Jack’s way of softening it. It’s like, “Whatever.” It’s good, I get it.

Jack Butala:                            I was going to say that’s Jill’s way of softening it.

Jill DeWit:                               I know. My way of softening it is …

Jack Butala:                            Don’t talk about it.

Jill DeWit:                               … they’re less than thrilled.

Jack Butala:                            You get that. You also get some signed offers back. There’s a signature block right in there. Some signed offers back and then you get a bunch of phone calls and some emails. Those four things. If you get a huge disproportionate amount of one, all right. There’s a ton of hate and no signed offers. There’s a ton of signed offers and no hate. There’s absolute silence, which I’ve never heard of. If there’s absolute silence, there’s a mailer problem and I’ve never heard of that.

What you want is a balance between those four things. Hate. What are they, Jill? Hate, signatures.

Jill DeWit:                               Signed. Signatures.

Jack Butala:                            Phone calls.

Jill DeWit:                               Phone ca- Then, email.

Jack Butala:                            Emails. A perfect mailer has got a relative balance of all those. Is it ever perfect? No. In the millions and millions of offers that we’ve sent out literally, there’s never a perfect balance. What you do want and how you gauge this, that’s the title of this thing, is to buy some property.

You might do it by talking to somebody. You might do it by signed offers coming back or emailed offers. Sometimes we even have a fax. We’re old-school because we’ve been doing this for a while. We do have a fax and some of the older owners fax back.

Jill DeWit:                               That’s funny.

Jack Butala:                            We’re going to keep it at four.

Jill DeWit:                               Yeah.

Jack Butala:                            You should be buying, right from the beginning of your career, 1%, between half and 5% but let’s say 1% of what you send out. You should be buying it at the price that you sent it out …

Jill DeWit:                               Right.

Jack Butala:                            … which is rock bottom. If you listen to this show, that’s how we price it. We price it way undervalue. That’s, in my opinion, how to gauge a successful offer campaign. I know Jill’s got a lot of other points, I hope, or this could just be the end of the show.

Jill DeWit:                               That’s so funny. I just thought of another one though. Another way to gauge a successful offer campaign is the longevity of the campaign.

Jack Butala:                            Oh my gosh. I didn’t think of that.

Jill DeWit:                               Because, this is something that I’ve talked to a lot of our members about.

Jack Butala:                            What a great point.

Jill DeWit:                               I’m like, “You know what? Sometimes you don’t know how well it was received because that person,” because this happens so often with us, “They open it up, they read it, they think about it, they sleep on it, it gets put in their file and it’s saved. It’s someday, they know it’s there. They might be thinking about it for a year, who knows?” I seriously still get calls and messages from people from years ago …

Jack Butala:                            From 2004.

Jill DeWit:                               … that call up and go, “Hey, I know this was the offer then. A, I’m happy I found you and B, are you still buying property?” “Heck yeah. What do you have?” That’s another nice little thing that happens. We send out such good respectable offers. It’s not just a postcard like a pizza special that’s going to expire. Seriously, that drives me crazy.

Jack Butala:                            Pizza special?

Jill DeWit:                               Yeah. It’s not like a door flyer that you’re just going to throw away. You don’t even look at those.

Jack Butala:                            I look at the pizza specials.

Jill DeWit:                               Oh. Do you?

Jack Butala:                            Yeah.

Jill DeWit:                               Oh. I don’t.

Jack Butala:                            I keep those.

Jill DeWit:                               Okay. They’re good respectable offers that these people hang onto. Don’t do anything phony. I know this is a different topic but don’t try to be silly and put dollars or dumb things in there. Anyway, they’re good, they hang onto them, they call back later, so longevity. I’m trying to think if there’s any other way to gauge … Jack?

Jack Butala:                            What ends up happening, and again, back to the grassroots of it, you’re sitting there twiddling your thumbs for about, let’s say a week, maybe four or five days now with this new mailing company, LetterStream. Then, it starts to hit. First you get the hate. You get those people out of the way. That’s funny. You’ve got to laugh about that stuff.

Then, you start to get some signed offers back and you go through the options and then it just starts to tail off. What do you do then? You send another offer out and make it a machine. Level the whole thing out. That’s a successful campaign. It’s all about averages here. Some offer campaigns, we hit as high as 20%, literally 20% of the properties that we send out offers on, we actually buy. It’s sometimes as low as half a percent.

It averages out, for us it’s 5% because we’ve been doing this for a while but that’s what you can expect. A ton of activity about four or five days later. Most of it up front, is negative, so then you’re going, if it’s your first time, “Oh my gosh.” Then, the silent people who want to sell their properties, start mailing it back. There’s no tricks to this. This is very, very predictable.

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            People are real surprised about that, even seasoned people in real-estate.

Jill DeWit:                               Yeah.

Jack Butala:                            They’re very used to ups and downs and peaks and values and this is a very predictable, bank on it, way to buy property.

Jill DeWit:                               It is. You want to up your numbers? Send more mail. You want to slow it down? Hold off a month. I watch our members do that too. What did Luke say the other day? He-

Jack Butala:                            He’s only ever sent four or 5,000 letters out.

Jill DeWit:                               Right. Now he’s on hold because he’s still catching up.

Jack Butala:                            He’s selling 50 properties a month, on average.

Jill DeWit:                               Exactly.

Jack Butala:                            Is there some magic dust that he sprinkled on the letters? No. He just did exactly what we talked about.

Jill DeWit:                               Exactly.

Jack Butala:                            What I love about Lucas, he laughs at … The hate doesn’t faze him.

Jill DeWit:                               No.

Jack Butala:                            If you send a bunch of letters out and three people call you back on that first, I don’t know, fifth or sixth day and they call you all kinds of names and they say terrible stuff, this doesn’t happen all the times but it happens sometimes, if that bothers you, in your soul, this is not for you. That’s the only way I can say it, Jill.

Jill DeWit:                               I know. It’s so funny. It’s like some people are cut out to be certain jobs and … Yeah. That’s one of the things I think about our people too, that makes them successful, is you and I set them up properly. I’m here to tell you exactly. That’s what we’re doing right now on this show. We’re here to tell you exactly how it goes, exactly what to expect to make sure this is right for you. If it’s not right for you, well, thanks for listening.

Jack Butala:                            Jill and I were talking the other day and it’s really funny because when we started Land Academy, first of all, I didn’t think it was going to work at all. I’m like, “Who the heck? No one’s going to understand what this is.”

Jill DeWit:                               Right.

Jack Butala:                            She was the one in the beginning saying, “No. This is a good thing. People need to share this.” It just cracks me up but we met and now I realize, whatever, we’re a year-and-a-half into this, I realized we met an unfulfilled need.

Jill DeWit:                               Totally.

Jack Butala:                            It can be summed up like this: We just tell the truth.

Jill DeWit:                               Yes.

Jack Butala:                            There’s a lot of BS …

Jill DeWit:                               Yes.

Jack Butala:                            … in this real-estate education space that we’re in. It makes me mad to think about it.

Jill DeWit:                               Totally.

Jack Butala:                            There’s over-charging and under-experience and all this stuff but-

Jill DeWit:                               Exactly.

Jack Butala:                            We have a very large, very intelligent constituency now and it’s because, I’m convinced, one sentence.

Jill DeWit:                               Right.

Jack Butala:                            We tell the truth.

Jill DeWit:                               Exactly. Thank you, Jack.

Jack Butala:                            We just told you the truth about the hate.

Jill DeWit:                               There you go.

Jack Butala:                            If you don’t like the hate, you should go be a masseuse then.

Jill DeWit:                               Oh, gosh.

Jack Butala:                            You have a Hell of a long career of sales history, right?

Jill DeWit:                               Yeah.

Jack Butala:                            You must.

Jill DeWit:                               Oh. You have to get used to it.

Jack Butala:                            How do you digest rejection? Because on the face of it, you would be somebody I would say, if I didn’t know you at all-

Jill DeWit:                               Oh. That I would be crushed?

Jack Butala:                            Yeah. I would be like, “Oh my God, she’s not going to survive.”

Jill DeWit:                               You know what? I walk around and here’s what I tell myself, I’m like, “Boy, it sucks to be them.” Seriously, that’s what I do. It’s even if someone cuts me off in traffic and they’re all just having a pissed off day …

Jack Butala:                            I think that’s the funniest stuff.

Jill DeWit:                               … I’m like, “Whatever.” I sit back and let them go.

Jack Butala:                            Oh. I wave.

Jill DeWit:                               I’m like, “Okay. I’m not going to get in your way. You’re in a hurry. I don’t really care. Have a nice day.”

Jack Butala:                            If it’s really bad, I blow them a kiss.

Jill DeWit:                               Oh, God. I can’t do that, I’m a girl.

Jack Butala:                            Oh. That’s right.

Jill DeWit:                               Okay.

Jack Butala:                            We should have a whole talk … No, we shouldn’t.

Jill DeWit:                               Okay.

Jack Butala:                            Join us in another episode where Jack and Jill discuss how to use information, that’s me …

Jill DeWit:                               And patients and inspiration, that’s me.

Jack Butala:                            … to get just about anything you want.

Jill DeWit:                               We use it every day to buy property for half of what it’s worth and sell it immediately.

Jack Butala:                            You are not alone in your real-estate ambition.

Jill DeWit:                               That’s funny.

Jack Butala:                            Yeah. You can’t blow kisses, huh?

Jill DeWit:                               No.

Jack Butala:                            There’s no way. Then, they’d be like-

Jill DeWit:                               No. That would be taken the wrong way.

Jack Butala:                            Yeah. It sure would.

Jill DeWit:                               Yeah. Stalkers. No.

Jack Butala:                            Maybe I shouldn’t do it.

Jill DeWit:                               Yeah. By the way, you have great hair and-

Jack Butala:                            I don’t ever do it to women.

Jill DeWit:                               Oh.

Jack Butala:                            I just do it to enraged men.

Jill DeWit:                               I know, still. It’s probably not a good I … Because, you know what? We have a person on our staff who doesn’t think that it … I see potential problems, like they have no trouble, in the comfort of their car, doing gestures and stuff to people and yelling at people. I’m like, “This is not cool. You can’t do that.”

Jack Butala:                            Yeah.

Jill DeWit:                               Nowadays, because you never know what’s going on in that person’s head and-

Jack Butala:                            Yeah. You’re right.

Jill DeWit:                               Thank you.

Jack Butala:                            It’s dangerous.

Jill DeWit:                               It is. It’s that kind of hate we don’t want. This kind of hate’s okay.

Jack Butala:                            This topic, I’m glad we talked about this because I’m trying to think of the first time I ever sent a mailer. I think I handled it like I handle everything, like, “There’s just no way this is going to work.”

Jill DeWit:                               Right.

Jack Butala:                            I expect nothing. Then, we were buying properties. The first time I sent a mailer campaign out, in Northern Arizona, we just got floods of mail back.

Jill DeWit:                               That’s so funny.

Jack Butala:                            I mean, floods.

Jill DeWit:                               Right, because they’d never had anything like that before.

Jack Butala:                            Yeah.

Jill DeWit:                               Yep.

Jack Butala:                            This was right when the internet was … The only choice that they had to sell their property at all, was to call an agent.

Jill DeWit:                               Right.

Jack Butala:                            The agent didn’t want to deal with it because they couldn’t put a sign on it. It’s too far out.

Jill DeWit:                               Right, or put it in the paper.

Jack Butala:                            Any of that.

Jill DeWit:                               Exactly.

Jack Butala:                            I get that jitter, that first time jitter.

Jill DeWit:                               Mm-hmm (affirmative). Cool.

Jack Butala:                            You are not alone in your real-estate ambition.

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