The Hidden Costs of Cheap Lead Generation – with Mike Hambright

In real estate investing, many entrepreneurs focus on finding the best deals but often overlook the power of strategic marketing. A well-structured marketing plan doesn’t just generate leads; it brings in the right leads, those ready to take action. By utilizing data-driven marketing tools like Google Ads, Facebook Ads, and SEO, investors can identify areas and demographics that are most likely to convert.

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One of the biggest mistakes many investors make is delaying lead responses. Studies show that if you respond to a lead within the first 60 seconds, your chances of conversion increase dramatically. However, many businesses assume they can follow up later, only to lose the lead's interest.

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Additionally, many investors focus on metrics like cost per lead or cost per contract, but Return on Ad Spend (ROAS) offers a clearer picture. Tracking ROAS helps investors determine which marketing channels are delivering the most profitable results. For example, while cold calling and texting may be cheaper, they often result in lower profits, while channels like Google Ads and direct mail tend to offer higher costs but better returns.

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The most successful real estate investors follow a proven formula: set a clear marketing budget, track key metrics like cost per lead and ROAS, respond to leads quickly, use a variety of marketing channels, and constantly adjust based on performance. By spending smart money and optimizing strategies, investors can stay competitive and profitable in the real estate market.

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