An example of why personal coaching is necessary. Post 172

 

Coach Mitch’s REFLECTIONS™

 

I recently got a call from someone who wanted to speak about one of my products, Coach Mitch’s “famous $1 Option.”™.

This person had gotten some other guru’s materials, had done what the guru said to do, but had not gotten good results. He was hoping that by using Coach Mitch’s “famous $1 Option.”™, he would be able to make lemonade out of lemons. It’s a good thought, but that’s all.

I asked, “What did you do?”

The wanna-be investor described that he had sent out 1000 postcards to out-of-state tax delinquents, had gotten back 50 responses, had spoken to all 50, and did not get a single deal.

I’m not surprised

I understood long ago that simply speaking to a motivated person is not a surety that a transaction will transpire.

Everyone, including those facing the gallows (euphemism for those facing a tax auction) will say, “NO” if they feel that they are being taken advantage of, or feel that they are being mistreated in some way.

Understand that I said, they FEEL that they are being taken advantage of, or they FEEL that they are being mistreated in some way.

I DID NOT say they “THOUGHT” they were not being dealt with well. Feelings are based on emotion, thoughts are intellectually based. Sales negotiations are emotional events.

Wasted monies

This person had sent out 1000 communications. That was a very bad number and I told him so. I counsel sending out small batches of 25 and no more than 100 communications, and for very good reason.

The caller said he had gotten 50 responses; a 5% response rate is a good number by any marketer’s estimation. A few weeks ago a student of mine reported back that he had gotten a 12% return sending out my communication to 100 prospects; that’s 25% of the responses that the other method received but at 1/10th the cost, $400 vs $40 for postcards, and $600 vs $60 for letters.

BTW, one of the 12 properly culled tax delinquent leads (12% returned of 100 marketed) accepted a deal. This student said he flipped the property wholesale and made, “$60000 profit in 3 days.”  WoW!

Wasted leads

I asked if the list had been qualified seeking certain criteria? The caller had NOT properly culled the tax delinquent list, something that the guru should have taught but didn’t.

As a result, too many of the wrong type of leads were communicated with. Only disaster could result.

Marketing to a large number gets a high number of responses but it does not allow the time necessary to investigate each situation thoroughly. How are you going to work your 40 hour J.O.B. (Just Over Broke) and still have time to speak to 50 leads? Unless you deal with a prospect quickly, their excitement fades and so does your credibility.

I counsel that marketing’s should be done in small batches. I know that the marketing will be successful, a 12%-20% return is great. I know that people are waiting for you to call. I know that significant conversations are necessary to pierce the defenses of a tax delinquent and gain a level of comfort and trust. Meetings (on the phone) can often take several hours.

Less is more

It is a misnomer to think that you can manage time effectively when having a large number of leads that must be responded to quickly. You feel that you must get onto the next call, especially if there is no easy and obvious sale in the offing; and that feeling of abruptness is felt by the prospect. You can’t help it. You are human. You have too much of a good thing, you feel power, you abuse it, resulting in another, opposite human reaction.

Only negatives abound

Upon receiving your letter, a prospect visualizes that you will fall in love with their property, just like they did.  They visualize that they have made a sale, and they see themselves spending the monies. Any good feelings thus gained are lost because of the lack of timeliness of your call and because of your abruptness. It is a wasted call. Your time is wasted, your marketing monies are wasted, and the prospect feels cheated, having lost his dream.

What if the worst happens – someone accepts your offer!!

OMG – someone say’s “Yes!” They agree to your offer and want to move quickly. Make believe that it is the first call you made. That leaves you with 49 more leads that are left begging for your time, your attention, and your money. Since you have no more time, attention, nor money to spare – these leads are left dangling, lost to you; wasted.

A good lead is a terrible thing to waste

This is certainly correct, but in this case, the question must be asked, “Were these good leads?”

• Are there hierarchies to tax delinquents?
• Are some prospects liable to be more motivated than others?
• Are some prospects more WILLING to deal than others?
• Are some prospects more ABLE to deal than others?

Prospects must be Willing AND Able

In this case, out of state tax delinquents were solicited; sometimes a good lead. No other qualifying criterion was used. The typical response was that the seller wanted too much money, and no deal was made, with anyone. You see, these were all vacation homes, and each of the tax delinquents had high mortgages that needed to be paid off, necessitating a high price.

The investor called me thinking that Coach Mitch’s “famous $1 Option.”™ would be a solution – which it would be, normally.

I suggested he think hard about calling these leads back and offering to option their property for $1 at their price. He would be responsible to market the property and today, everything costs money, and takes your time, and attention.

Think before doing

The wrong lead set had been used. I encourage students to do a bit of checking prior to sending out marketing. At the least, check if there are mortgages and/or other liens against property before marketing to that property.

If you are only sending out 25 communications, then looking up records on 25 properties does not take much time, perhaps 1 hour online. Once reaching the proper database, all you do is put in the property address and see if a mortgage exists and the date of the mortgage.

If there is no mortgage then you know that a prospect is ABLE to sell cheap – if they choose to. Someone with no mortgage is a good prospect. A tax delinquent with an 80% mortgage is not a very good prospect. They may be WILLING to sell cheap, but they are not ABEL to sell cheap. Why waste your time, energy, and money on that kind of prospect? Why depress the seller any more than they already are?

You must buy right to sell well™

A sales axiom: You create your profit in the negotiation. You bank your profit when you sell.

Your negotiation is easier if the seller is ABLE to sell cheap because their expenses are low, as in no mortgage. Then the only thing you have to do is convince the seller that you are the person that can give them what they want – over everyone else that they have spoken too. Think you don’t have a chance? Well, they haven’t sold to anyone else yet, so the seller is looking for something that is not being offered. Find out what “it” is (the hot button) and give it to them. That’s it. It’s not rocket science – it’s much harder, it’s dealing successfully with human emotion.

Coach Mitch’s “Ridiculously Simple System…”™ and Coaching Program teaches you how to market, how to negotiate, and so much more.

See Coach Mitch’s “Ridiculously Simple System…” ™ for details.

Well – what are you waiting for?