If you know me well, you’ve probably heard me say this about thousand times by now. The question is… do you follow it?
Do you run your business by this mantra? Do you LIVE by it?? Well if you don’t, you should!
There is a core difference between VERY successful Wholesalers and those who just kind of, ya know, get by. That core differential is, you guessed it, the database!
That’s the difference between people who are what I like to call “Rollercoaster Wholesalers” and those who operate successful Wholesaling businesses.
First off, what is a Rollercoaster Wholesaler?
A Rollercoaster Wholesaler is someone who does a mailing, then they do a deal, then they spend money on marketing, then there’s no money, then they try to do a mailing and they don’t do a deal, and then they do a mailing and their income goes straight in the toilet!
The sad part is that about 90% of Wholesalers operate their business this way! That is a nightmare way to run a business. In fact that is NOT a business!
There’s a key distinction between Wholesalers who are on this constant Roller-coaster ride and successful Wholesalers. The distinction relates to a question that I’m asked often and it is this: “Tom, why do you mail during the holidays, or what some people refer to as an “off-season”?
So what does the off-season have to do with your database? Read on…
First off, it’s crazy to even think there’s such a thing as an off-season. If anything, motivation REALLY comes out around the holidays! Imo everything that you’ve heard about the off-season is pure non-sense. Throw it out the window and don’t listen to anyone that tells you there is such a thing.
If there IS an off-season, well, we recently finished one of the STRONGEST (supposed) off-seasons since I started Wholesaling!
The off season is a myth, don’t believe it.
For the people that DO believe this myth, then the obvious question would be: Why would you mail during the holidays when there’s an off-season?
Here’s why: The reason that we do this is the core difference between running a successful Wholesaling business and Wholesaling as a hobby.
What do I mean?
As I said earlier, the money is in the database. I can’t stress this point enough!! It is CRITICAL that you understand this sooner rather than later. Get out a sheet of paper and write it down and hang it close to your work station!
“THE MONEY IS IN THE DATABASE!”
When you mail, you’ll probably do some deals, right? That’s great and I love it! But…that’s just the beginning of the process. Every single person who calls into your marketing line MUST go into your database immediately! You need to have pig-headed discipline about following up with those people all the time. No lead left behind!
Let me give you an example:
- If you are in my database as a motivated seller, every five months you’re going to get a phone call (which will go directly to your voice mail). For anyone interested, we use the service called Voice Logic.
That call is going to sound like this: “Hi, this is Tom. We spoke a few months ago about me possibly buying your home. If you’re still interested in selling, please call me back at this number. If you’re not interested in selling, there’s no reason to call me back.”
That’s it – every 5 months. I’ve never done a voicemail blast to my database without getting a deal! Let me say that again: I’ve never done a voicemail blast to my database without getting a deal. Also, you (or your house buyers) should be working the “dead lead” list or the people who said they’re not interested. Remember, when you do a mailing, most people are not interested right at that moment…they are just getting there.
So yes, you will get some low-hanging fruit and go out to meetings with some people who aren’t ready yet. And those are the low-hanging fruit in the closed deals. But the majority of people are not going to do a deal with you right at that moment.
That is why the database is key. That’s why as you get to 500 people, 2,000, 10,000, 20,000 prospects in your database, you’ll start to see where the money is coming from.
The money in the wholesaling business is ALL in the database. Do you have to mail? Of course you have to mail to make money. Marketing is the life blood of your business. Btw, imo direct mail is still the best marketing channel – there’s no doubt about it. But there is absolutely NO WAY I’m going to slow down during the holidays and I encourage you to do the same.
I don’t believe in competition but let me say this: Most wholesalers are not mailing during the holidays. That is when you should be pounding the mail…at the EXACT time when nobody else is doing it!
So at the end of the day, remember that in order to have a successful Wholesaling business, the money is in the database. Put this on your wall somewhere so you never (ever) forget it. We live and die by the database. That is the key differential between a Wholesaling hobbyist and a Wholesaling business owner.
Be more consistent, live by the database and get off the Wholesaling Rollercoaster!