Heat Of The Moment, The Invisible Hand, There’s Enough For Everyone

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Welcome To The Business Of Wholesaling Newsletter!

Every week, we’ll be sending you strategies, tactics, and tools used by successful wholesalers and we’ll cover any important market insights and news in the industry.

Here’s what we got for you today:

• Heat Of The Moment

• The Invisible Hand

• There’s Enough For Everyone

Free Class On Virtual Wholesaling Next Thursday (2/8)

Next Thursday, our friend Tyson Smith is hosting free class where he goes over his virtual wholesaling system he uses to generate up to six figures a month.

It is live. So you can ask Tyson questions in real-time.

Some students that attended this free class were able to use that information to do their first deal.

That’s pretty cool, right?

Here’s a preview of what Tyson will share with you when you attend the class:

• All of Tyson’s contracts

• Sales scripts

• How Tyson finds buyers and sellers

• How Tyson does deals in all 50 states

• And more!

Tyson will even make your job 50% easier.

If you use the info from the class and find a deal, Tyson will help you sell that deal to his buyer network so you don’t have to build a buyer’s list from scratch.

Heat Of The Moment

There’s a concept in sales/marketing called “buyers in heat”. 

Basically, it means that once someone makes a purchase, the likelihood of them buying again is multiplied in magnitude compared to their pre-purchase state.

The only problem is that your window of opportunity is a short one. 

But it’s also the reason why upsells work so well.

That’s why McDonald’s used to ask hungry customers if they wanted to supersize their orders. 

Or the sales guy at the suit store will try to sell you ties, socks, and other accessories after you’ve committed to buying a suit. 

The same concept can be applied to sellers.

Have you ever had a “serious” seller tell you they’re going to move forward, but after sending them the purchase agreement…

They’re like Casper and just disappear?

A lot of times, that tiny bit of slack is enough for a seller to renege their commitment to you on the phone. 

So what’s the solution here?

Don’t let them off the hook.

We’ve talked about this cognitive bias before, but once someone makes a commitment, they want to be seen as consistent.

So the easiest thing you can do is have them sign the purchase agreement with you or a sales rep while they’re still on the phone. 

That’s assuming you’re using digitally executed contracts like Docusign (and not operating in the Stone Age with stacks of paper). 

If you get them to say out loud that they’re ready to move forward, send the agreement over while they’re on the phone.

Tell them that you want to take a few minutes of their time to go over the agreement in case they have any questions.

And at the end, have them sign. Done deal. Shoot it over to the title company. 

Because let’s be honest. You’re not the only one who’s trying to get this seller’s business.

If you let them off the hook, they might take your agreement and start shopping it around to realtors or other investors. 

But when you’ve opened that small window… that heat of the moment… you know what they say – strike while the iron’s hot.

The Invisible Hand

There’s a universal law that makes life predictable. Especially when you look at the long-term numbers. 

It’s called the Law of Averages. 

Dictionary definition - The principle that supposes most future events are likely to balance any past deviation from a presumed average.

In terms of sales/marketing, it’s scarily accurate. For example, the team at Leadzolo knows on average, how much it costs to generate a seller lead spending X amount of money.

And they know their numbers down to the specific counties. 

When it comes to sales…

Sales Rep #1 can send 4 offers out of every 100 dials.

Sales Rep #2 can send out 8 offers out of every 100 dials.

And so on. 

That brings me to the point of this section, do you know your numbers to a tee?

Based on the Law of Averages, do you know how many seller leads you’re generating per X dials?

Or how many contracts are generated from X number of conversations?

If you have multiple cold-callers and sales reps, do you know each of their individual numbers?

Let’s talk about why this is important if you have a team. Sometimes businesses look at their numbers from an overall perspective. 

Today our team made X number of dials, generated X number of conversations, and sent X number of agreements. 

But based on the Law of Averages, there’s a high chance that each of your reps isn’t contributing to that pool equally.

There’s another law you probably heard of called the 80/20 rule. Maybe we’ll discuss that more in detail in the future, but based on the 80/20 rule, there’s probably 1 or 2 reps carrying the results. 

But if you know each individual rep’s results, you can increase your Law of Averages. 

How?

Let’s say Sales Rep #2 is doubling the results of Sales Rep #1. 

“Sales Rep #2, what are you doing during your calls?”

Then take whatever Sales Rep #2 is doing and have Sales #1 apply it. 

Now it might not scale linearly. Revisiting the previous example, Sales Rep #2 is getting 8 offers out of 100 dials and Sales Rep #1 is getting 4. 

Armed with the new knowledge, Sales Rep #1 could bump up their results to 6 offers per 100 dials. Or maybe even higher. 

That’s why they say small hinges swing big doors. A collection of tiny improvements can lead to a magnitude of difference.

There’s Enough For Everyone

Most of everyone’s first impressions of this industry are from a cutthroat perspective.

You’re swimming with sharks and it’s survival of the fittest.

And you’ll find evidence of that. A lot of us have had people go behind our backs or try some loser moves.

If that’s how you view this industry, that’s what you’ll continue to find. A population of folks operating with a scarcity mindset.

But on the other side, the biggest players in the space are always doing deals together.

They understand there’s enough pie for everyone. And it’s better to have a smaller piece of a bigger pie than the biggest piece of mini pie… or nothing at all.

Not everyone is trying to steal your deal.

Not everyone is your competition.

It’s super easy to get jealous when you see another wholesaler get a fat wire or check from a deal.

And it’s easy to get annoyed because you believe you’re working harder than that person.

That may or may not be true. But you have zero control over that. That person could’ve been at the right place at the right time.

If you haven’t already, try looking at things from a different lens. A lens of abundance.

Not to get woo-woo, but from my experience, if you look and act from scarcity, you’ll find scarcity.

When you look and act from a place of abundance, you’ll find exactly that.

It’s like the old Tony Robbins exercise of trying to look for everything red in your room and closing your eyes, trying to picture what was red.

Nothing tactical here.

But if you’re having a hard week and finding yourself suffering because you’re comparing yourself to others…

Try viewing the world from a different lens and see what discover.

Today’s Sales Objection

Last week’s sales objection:

“I Need to Make Repairs Before Selling.”

Best Answer: Tell them you have buyers ready to buy homes in any condition. If they’re trying to move as soon as possible, why go through the hassle? It might not get them the price they’re looking for anyway. You have the solution to help them to get out of their home faster.

Today’s Sales Objection:

"Zillow Says My House is Worth More"

Reply with your answers! The best answer will be featured in next week’s issue.

Thanks for reading this week’s issue of the Business of Wholesaling. 

We’ll be back next week with more marketing & sales strategies, market insights, and other advice you can use to grow your wholesaling business. 

See you next week.

Team Business of Wholesaling