So I've been seeing a lot of
comments on my Facebook page and different facebook posts from real estate agents saying that Facebook ads just
Don't work for their business
So I want to kind of bring out the whiteboard right here break down some of the numbers and at the end this video
You can decide if Facebook ads are gonna actually work for your business
If it's something you should go with or if you should just focus on referrals door-knocking : all these other prospecting methods
Right. So let's get a few things straight
first of all
So let's get some kind of national averages down on the whiteboard and then we can work backwards do some mathematics
Right and then see if it's actually worth to invest our time and our money into Facebook Ads
So the first thing that we need to know is that the national average the national cost per lead
Average is about six dollars per lead. Okay, so write it up here
six dollars per lead
So if you go look at that compared to like a Trulia Zillow realtor.com
Usually those sites you're paying about twenty five to thirty five to fifty two even more
Dollars per lead and the other thing is like these leads are not even
Exclusive to you, whereas with Facebook. These leads are a hundred percent exclusive to you. And this is the national average guys
So what that means is that there's a lot of areas where?
The lead costs are even much lower than six dollars per lead
Now the areas where the lead costs are higher than six dollars per lead, you know, they're gonna be areas like, San Francisco
LA New York City where obviously the purchase price is a lot higher so your commissions are a lot higher
so at the end of day
It makes it totally worth it still to actually go through and pay for those leads
now the
Second thing that I want to get down on the board before we work
Backwards and kind of like take a look at all this math as far as Facebook ads and lead generation
Go for the real estate space is that the average close rate is about two to three percent
For online leads. Okay. Now that is across all like all online leads doesn't matter if it's from Facebook Google your website
Whatever it is. So let's put that down
We got about two to three percent
Okay now
thing I always hear is when people hear this or like well Jason I closed about
75% of referrals and that's awesome. And I'm not saying that you shouldn't focus on referrals as well
The only thing about referrals is there's going to come to a point where you run out of your existing
Network, right? You only have so many friends. You only have so many family members. So at some point you're not gonna have that
Consistent flow of deals coming through because you only have so many friends and so many family members
All right. So let's break down the math here. Let's just say that you are generating about three to four leads per day
Okay, so let's write this down. So
If you get three
to four leads
per day
That is about a hundred leads per month, okay, so you're riding around 90 to
120 so let's just say 100. So hopefully this is big enough a
100 leads per month
All right, so three to four leads per day honestly guys
If you go through and you watch all these other videos on my youtube channel
I break down step-by-step how to actually go through and generate these leads. So to get three to four leads per day
Really isn't that difficult? Alright, so now we're at a hundred leads per month and our national average will separate this right here
Okay, two to three percent
Of the leads are actually gonna turn into closed deals
Right and a lot of times you can see a little bit higher than that
It really all depends on your follow-up, but let's break this down. So we got two to three deals
So 100 if we have 100 leads per month, we're getting and we close two to three percent
We're closing two to three deals now
I was just on a phone call over earlier today and someone had generated
46 leads and it already closed two deals from those 46 leaves. They had generated this month
Okay, so then the last one was like 26 27 days. They generated 43 leads two deals
So that's more around like the four or five percent conversion rate right there, okay
So if you have two three percent, you're gonna have two
to three deals
Go through right now
let's just say and obviously every every area is a little bit different based on the home sale price and you
commissioned your split with the broker and all that stuff's a little bit different but let's just say on average you're making
$5,000 per close transaction, right? Which I know you're probably making a whole lot more than that
but let's just say $5,000 to keep this basic and simple so $5,000 here you'd be making
10
to
15,000 dollars in gross Commission income there, right? So now
You're making 10 to
$15,000 from these 100 leads and this is typically within the first 30 to 60 days
That's not even having the continual ongoing
followup with all these leads coming through because now you closings 2 to 3 deals right here we've got
97 to 98 other leads that you can continually follow up with and nurture and these are people within your
Specific area right now, like let's even say half of those, you know, turn out to be bogus phone numbers
Which usually it's not that that's not the case
but half of those you still have 47 to 48 other real people in your area that you can nurture and
Follow up with to eventually close down the road. Okay
So now we're at ten to fifteen thousand dollars right here and gross commissionable income
Well, let's break it down by the National League coughs right up here. So six dollars is their average cost per lead
Okay, so we're getting three to four leads per day
100 leads per month. So let's say a hundred will just even go up here
So if we got four leads per day, right and there's 30 days in the month. Let's say that's a hundred and twenty leads so
120 okay, we'll say weeds right there
times the
six dollars
Okay. What is that math? I don't even know what that is
That's like so let's see six hundred dollars times that so that's gonna be seven hundred twenty dollars
In ad spend right to make
Ten to fifteen thousand dollars in
Commission I
mean
Here's the numbers guys right here. Now. I know a lot of you guys are probably looking this insane
Well, Jason
Like I'm only gonna close two three deals for 100 leads
Like that's just like who has time to call and follow up with all these leads. Well, guess what?
This is the exact same thing
I use in my business
But guess what?
My goal is I want to close 1.5 to 2 percent of the leads that I'm generating. All right
Now the way that I'm able to do that with basically a one-man show. Obviously, we have some support members on our team
They're able to go through
And fulfill on on everything that we're selling
But we use leverage we use technology. We use email marketing. We use text message marking. We use facebook Messenger, right?
And so all these different paths where you don't have to go through and kill yourself calling every single one of these leads now
obviously if you have an is a an
Independent sales associate and going through and calling every single one of those leads and figuring out
Okay, is this lead like ready to go or not? Then obviously that's gonna help out
Dramatically, right but if you have all of this automation in place of email marketing sending automated emails out dripping on
That person consistently sending out text messages sending out automated Facebook messages
then you're able to trigger and start conversations with every single one of these leads and
then you're only spending time with the leads who actually
Respond back. So let me just really quick. I'm just gonna erase this so we can get this all nailed down
So we can make a decision an educated decision on whether or not Facebook Ads actually work for our business
So let's say we're at fifteen dollars per lead. Okay. Well, let's even say twenty dollars per lead
okay, and then we're gonna do three to four leads per day a
per day, which is going to be about
100
leads per month
Today so now we're at 20 dollars per lead 100 leads per month. And so that's gonna be about let's say
$2,000 in advertising
Right. Well as we talked about before to get those hundred leads we're gonna have to pay two thousand dollars and if we close two,
To three percent of those 100 leads. Well, let's do this. Let's even cut that in half
Let's say we're only closing one deal from those 100 leads. All right, so one deal and you're making on average
Five thousand dollars per commission. Okay. Well look at this
You made
$5,000 in GCI
From spending just two thousand dollars on advertising. So you are more than doubling your money right here
Right now guys over the last couple of days
I've been listening to a book by Tony Robbins called money master the game another one's called unbreakable or unshakable
I can't really remember the name but they're talking about getting investments where you can make a consistent 7 to 8 percent
return on an annualized basis
Right where you are literally doubling almost tripling your money
Even with these terrible lead costs and the terrible 1% close ratio
Within 30 to 60 days
all right, so when you're going through and looking at Facebook Ads
it's really the mental mindset and really just thinking about of like going through and
Doubling your money and having your money work for you. Okay, this is more an investment
It's like investing the stock but you have full control over it because you know how much money you're gonna put in, you know
exactly how many leads it's gonna kick back out and
You know how many deals you can actually close from those leads that are being generated and once again?
Because of technology it's a beautiful thing. We have our email marketing. We have our text marketing
We have our facebook messenger marketing all on complete autopilot
And then once you start to scale this up, okay, usually at first you've got all the time in the world
But you don't have money right and then it kind of starts to transition and you start having a ton of money
But you don't really have any time
So what you do? Is you go hire an ISA you hire an assistant you hire somebody?
To go through and call every single of those leads as soon as they come in and maybe that adds an extra
$5 per lead to your overall lead costs, but as we showed you guys by the numbers right here
Even if you hire an ISA, even you're paying through the nose for some software that's automating your email text marketing facebook Messenger marketing
Which is you guys? No, Arsenal is a very like a very affordable solution to be able to handle all that for you
You're still extremely profitable right here. All right
so basically
I just wanted to shoot this video really quick and break down Facebook Ads by the numbers and how they can actually
Work for you and guys, this is exactly how I've grown my entire business
I am the only sales person. The only sales rep. I do all my marketing
I do all my sales and this is the exact process. I invest money into Facebook Ads
There's no way I could handle all of the sales calls, right?
And so what I do is I leverage email marketing. I leverage text message marketing and then
Based on those people that respond and show interest
Then I'm able to sell them on whatever I'm selling and the same thing goes with you in real estate
I mean the benefit for you in real estate is the things you're selling are
Extremely high sales prices. So the Commission is
insanely high which obviously
The higher the sales price the higher Commission the better overall return that you're getting on your money
so anyway guys
I just want to kind of debunk this whole myth that I see all the time on my facebook page on my facebook post
Facebook Ads everything of Realtors saying Ah Facebook Ads don't work
They don't work because they're not willing to go through and do this math work
Backwards from how much they're actually gonna make from the deal and then actually like commit enough to generate at least
50 to 100 leads a lot of people that I see a lot of real estate agents that I see that are not successful
with Facebook Ads
They'll commit to getting about 20 to 25 leads and then after the 20 to 25 leads if they haven't closed a deal yet
They're like Oh Facebook Ads don't work
right, whereas if you just push a little bit farther if you're committed to that 50 to 100 or even two hundred leads mark
It's really not that much money invested, and the return can be absolutely insane
so anyway guys
I hope you guys this this video helped you kind of debunk the myth if you're like one or now a new Facebook guys
really work
How can I actually make them work for me just do the math working backwards?
It's pretty simple and then leverage technology to be in your favor
And as soon as you start making that money hire an assistant hire an ISA so they can be doing the phone calls
So you can be doing what you do best, which is working with your clients one-on-one
Actually closing deals helping them sell and buy their home
So anyway guys with that said I hope you enjoyed this video
If you did go ahead give it a thumbs up. Also if you're a brand new here to the channel
My name is Jason Wardrop
I launched new videos every single week on how to generate more leads make more money and grow your business. So make sure you subscribe
hit that notification bell so you can be notified every time I launched a new video and with that said
Thank you so much for watching and I will see you in the next video