At the end of every year, Dan and I scour through every little detail of our business to see where we can make improvements. We open up our Zoho CRM account and start analyzing the crap out of everything.  Our marketing campaigns, the transactions that we closed,  our cash buyers list, the people we dealt with, and the processes that we used to make it all happen.

 

We usually end up make the same realizations over and over…and over and over again.

 

Here’s just a few of the things that we see EVERY YEAR:

#1 , #2, and # 3 are pretty self explanatory. Let me explain what I mean by #4 a little further so you know what I REALLY mean by that.

We added Derek to our team in January of 2015. He’s responsible for building a buyers list, marketing our properties to them, and maintaining everything related to the “back end” when it comes to getting houses sold (photos, lockboxes, signs, etc).

We added Derek to our team in January of 2015. He’s responsible for building a buyers list, marketing our properties to them, and maintaining everything related to the “back end” when it comes to getting houses sold (photos, lockboxes, signs, etc).

Every time we got a new property under contract (GOOD DEALS, mind you), each one of these 400 people would get several notifications about the property.  He sent voice mail broadcasts, text messages, emails, and promoted posts on Facebook to these people.  He’d do this multiple times during a contract period trying to sell them a house.

This started to get frustrating, and even had us wondering what the hell we were doing wrong. how could we get such a good deal and not a single person was interested.

That’s when we decided to take a closer look at our “buyers” list and see what was really going on.

What we discovered was that the 36 houses that we sold in 2015 were bought by just 11 buyers.  Which means that on average, each buyer bought 3 houses from us.  That;t not exactly how the numbers played out (some buyers bought 5 houses, some bought only 1 house) but you know what I mean.  We still only had 11 buyers that made it to the closing table.

How this translates for us is that those 11 people are HIGHLY Valuable to us and our business.

Look, if you’ve never met me before or this is the first time you’re reading my blog, you must know that I HATE wasting my time.  Any amount of time that is wasted just pisses me off.  So I’m constantly looking for ways to maximize my time and be the most efficient person that I can.  Same goes for my team.

So I deleted every buyer on our list except those 11 people.   Yes, you heard me right. I deleted them.

If they haven’t bought a house from us in the last 12 months, then they probably never will. They’ve seen every deal that we’ve had for the last year come across their desk, and they’ve not stepped up to the plate. I don’t want to waste my time with them. Goodbye forever!  I won’t miss them. Not even for a minute.  They don’t deserve to be on my list. Only the people that actually BUY houses.

What will happen to any new buyer leads that we generate from now on? They’ll get added to our list just like before. They’ll get our text messages, emails and phone calls just like everyone has. They get a fresh chance to buy one of our houses in 2016.  We’ll reanalyze the list of buyers again in December 2016 and see who was lucky enough to stay on our list.  Then we’ll delete the rest.

I think this was a progressive approach to relying on a giant list of shitty buyers to make offers on our properties, and our team agreed.

Now that we’re down to 11 REAL cash buyers who are actively purchasing properties in Freakville, we can spend more time learning more about them, what they buy, how they like to operate, their exit strategy, and make very specific calls to them when we have the house that we know they want to buy,

I’m pretty excited about this!  My 2500 CallFire Credits are going to last alot longer now.

On our daily marketing checklist for today, we sent out an email broadcast to the 3 buyers that have made it onto our 2016 list.   They officially have 11 months to prove themselves as being REAL buyers, or they can kick stones right off of our list.

The lesson here:  Don’t be overly excited when you have a “cash buyer list” of 1,000, 2,000 or 3,000 people. Chances are they won’t ever buy shit.  When you can really get excited is when you have a handful of people that know you, like you, and trust you enough to do business with you and have a bank account full of money.