My Plan Of Action

If you don’t plan where you’re going then how’re you going to get there?

Right then, here it is, my ‘Plan of Action’. It’s nothing special or clever but it’s a plan which I intend to follow and hopefully reap rewards from. Remember you’ve got to have a plan and act on it if you want to get anywhere, procrastination is the opposite of decision and is the ‘killer of all dreams’ (which I have to admit I’m guilty of at times)

As I’m not currently in a position to buy property I’m looking to trade instead, ie; get an option agreement on a property, use finance from a JV partner to fund the deal and take a finders fee, or an assisted sale- I’ve completed on an assisted sale previously – read about it here:  http://singlemumtopropertyinvestor.com/2010/09/19/how-i-made-more-than-12k-in-7-weeks-using-none-of-my-own-money/

I have a couple of investor friends who’ve agreed to JV with me this way. Or, if an opportunity arises to do a Lease Option that cash flows well then I’ll do this as well.

I’ve spent a lot of money in the past on leafleting, PPC, newspaper and online ads but never measured the results or compared the different strategies to calculate the cost of each lead I obtain or, more importantly the cost of conversion per lead. ie: I may get 16 leads from a distribution of 10,000 leaflets but if only one of those converts to a deal then the cost of that deal is going to be considerably higher. It all boils down to what you want to be paying per deal and is it worth your time, money and effort?   It can be ‘swings and roundabouts’ and its difficult to measure it exactly as there are lots of other factors to consider like:

  • The time of year (Christmas and summer holidays are not good times to advertise)
  • Your availability. Will you be available to answer telephone calls or will you use a call centre? If you don’t answer the caller will immediately call one of your competitors!
  • People skills. Are you comfortable talking with people and making them feel at ease?
  • Negotiation skills. The longer you’ve been doing it the better you will get.
  • Marketing material – What your leaflet or advert says is vital. Is it going to make people want to call you? There’s a lot of competition out there!
  • Your distribution method. Are your leaflets being delivered correctly by your team? (or being dumped?)
  • Your ‘Team of professionals’ ; The people you choose to work with to complete the deals, brokers, solicitors etc, if they’re not doing their job efficiently you can easily lose the deal

I’m intending to use three forms of advertising and compare costs and leads obtained/converted for each method to see which performs best. The three I’m using are:

  • 10,000 Leaflets
  • 30 Postcards (in shop windows)
  • 4 Local Newspaper Ads

I’ve already designed and ordered my flyers, the cost so far for that is £112.00 (for 10,000, they should be with me around 21stMarch.  I put an advert on my local ‘Gumtree’ site yesterday (15/03/12) saying:

‘Owner Drivers Wanted For Leaflet Distribution For Local Property Company. £30.00 per 1000 paid plus bonus of £200.00 (paid on completion) if a lead turns into a deal’

So far I’ve had 19 applicants, well it was 20 but one of them lived inRomania, so I’m not counting him – he sent me his CV, gotta give him credit for trying though lol. I’ve replied to them all saying I’ll be in touch when the flyers are ready for delivery.

In my experience it’s much better to have lots of distributors delivering small amounts (ie; 1000 each) rather than a couple delivering thousands. Why? Because they might be keen to do a few but get bored after a while (it is a tedious job) and therefore be more inclined to dump them!  I don’t use the mail companies, they’re expensive and tend to deliver your leaflet with 10 others! (which subsequently get dumped in the bin)   Also, make sure the distributors all live near to the areas you want covered as you’ll have to drive out to pay them for their work (after checking to make sure they’ve delivered correctly) and you don’t want to be driving for miles (time is money!)

I’m currently writing the Post Cards and will be taking them out to local shops in the area, there are not many places that let you advertise nowadays but I’ll just have to drive around and find them. The cards will say something similar to my flyers…’Houses Wanted, Guaranteed Quick Sale’ etc

The Newspaper Ads will say something similar, but these ads will be a bit shorter as they’re expensive – around £120.00 for 3 insertions for a 5cm ad – and will be shown for two weeks on three consecutive days each week, ie; Thurs, Fri, Sat.

I’ve designed a Vendor Contact Form which I’ll refer to when dealing with enquiries which also has a field asking where the vendor saw my advert so that I can log which method they are responding to and therefore see which advert has been most cost effective overall.   As I want to start each strategy around the same time I’m currently looking at starting around Thursday 29th March (which incidentally is my birthday!) as by then I will have my flyers back and have all the necessary paperwork etc in place.

I think I’ll give the campaign about a month to 8 weeks then draw up a graph to show comparables for cost/conversion for each strategy etc, as that will be interesting, although I’m rubbish at maths!

Well that’s it for now, I’ll post more as I start the campaigns and keep you up to date. Feel free to ask any questions – or make suggestions!   


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