On this podcast episode, I interview Jason Nickel who is the founder of Lead Sherpa. You can listen to the podcast by clicking on the white triangle in the black bar at the bottom of this page. If you want to try text marketing using Lead Sherpa click here
Lead Sherpa is a text marketing platform for real estate investors that lets you send text messages directly to motivated sellers. If you are an experienced investor, who is already doing a few deals, then you should consider adding this tool to your motivated seller marketing.
The first step to sending text messages to sellers is to purchase a motivated seller list (for example an absentee owner, tax delinquent or foreclosure list). Once you have a list, the next step is to skip trace this list in order to get mobile phone numbers. You can run the skip trace with any skip tracing service, or you can run a skip trace directly inside your Lead Sherpa account (which I prefer and is way easier).
Once you have your list skip traced, you add this list to a “campaign” inside your account. You can separate these campaigns by type of lists, by area code, or any other sort criteria that you want to use. Once you have a campaign set up, you can start marketing to potential sellers by sending text message to their cell phones.
Keep in mind that if you are going to start sending text messages, not everyone will be thrilled to get a text message from you. However if you have a good list, you will get a reasonably good response rate. Response rates as high as 15% to 20% are not unusual and while most of those people texting back are not interested in selling their house, SOME OF THEM ARE! We get approximately one seller lead for every 200 text messages that we send out (which is great).
This is a very unique and cost effective way of reaching motivated sellers. It’s a lot cheaper than every other motivated seller marketing method out there, and it is a very effective way to reach a lot of potential sellers without spending thousands of dollars.
There is a lot of buzz in the real estate investing world around new marketing platforms like text marketing right now and I can see why.
On this podcast Jason discusses text marketing in general and particularly using Lead Sherpa. We also discuss the legality of text marketing to sellers and why this form of text marketing is legal and compliant.
We also discuss lead acquisition costs, cost per lead and cost per deal and compare it to other marketing platforms such as direct mail, pay per click and Facebook Ads.
What we have found in our business is that the cost per lead with text marketing is substantially lower. For example, our average cost per lead in text marketing is about $20. We count a lead as someone that is interested in selling their house or would like an offer on their house. That cost per lead of $20, compared to other motivated seller marketing methods is very low. For example it costs us $50 to generate a motivated seller lead on Facebook, $100 to generate a motivated seller lead with direct mail, $300 to generate a motivated seller lead on Google.
Listen to this podcast interview with Jason and learn how to add this text marketing tool to your budget. If you are a real estate investor that has completed a few deals, and you have some investing experience, then you should consider adding text marketing to your motivated seller marketing budget. If you are a student of mine (who is already doing deals) and you need an introduction to Lead Sherpa from me send a support ticket to the Support Desk.
Disclaimer: The above commentary and anything mentioned during this podcast interview by either myself or Jason should NOT be construed as a legal opinion or legal advice. We are NOT attorney’s, and we cannot give you legal advice, nor are we attempting to give you legal advice. This should not be construed as legal advice. Please consult with your TCPA Attorney if you are going to employ text marketing in your real estate business. You should do your own research and due diligence, and consult with an attorney that specializes in this area of marketing since telecommunications regulations and laws change all of the time and these laws vary from State to State.
Click on the white triangle in the black bar below to listen to this podcast. If you want to try out text marketing using Lead Sherpa click here
WARNING: If you are texting or cold calling motivated sellers in Florida please read this important update by clicking here