Does Size Matter? Google My Business, Profit Margin To Aim For

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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:

• Does Size Matter?

• Google My Business

• Profit Margin To Aim For

Special Invite Tony Robbins’ Unshakeable Business!

Tony Robbins’ team reached out and asked if we could help share information about Tony’s live virtual event called Unshakeable Business on May 10th.

So here’s why you should click the link below and reserve your Zoom seat.

Do you want to create more revenue, work less, and spend more time with your friends and family?

If so, that’s the whole theme of this event.

Tony will be going over his newest material like “The 8 Triggers of Crisis”, rewriting the rules of business today. (These triggers will shut down some businesses and make others very wealthy.)

You get to spend 3 hours with the man himself and it’s free. What more could you ask for?

Does Size Matter?

It used to be cool to build a big team to get the hustle and bustle environment of a Wolf of Wall Street boiler room. 

But most of the time, that’s only what it is. A busy looking environment. 

When you dig into the numbers of the operations of some of these wholesalers, you’ll find that they’re barely taking anything home because of the overhead.

On top of that, they’re stressed out of their minds. 

So that brings us to the new metric that we think most wholesalers should aim for. Unless you want constant high blood pressure and lack of sleep.

PPE aka Profit Per Employee.

Have you ever heard of a company called Air Lease?

They’re a publicly traded company that purchases commercial aircraft to lease to airline customers around the world.

But that’s not what’s cool about Air Lease. They have the highest recorded PPE in the world. It’s almost 3X higher than second place.

With only 120 employees, Air Lease brings in $516.3M in profits per year. Meaning, their PPE is around $4.3M per employee. 

That’s pretty insane, right?

It’s a different way of thinking.

Instead of having a team of 15 and doing a million dollars… how cool would it be to 3 employees while doing a million dollars. 

The difference in PPE is $66.6K to $333.3K.

Of course, this means your deal size has to either increase in volume or increase in amount. The latter being the ideal scenario. 

And of course, you need to have A-players on your team.

But think of the possibilities with just a good lead manager and a good VA.

Google My Business

We are often told that to generate more business we have to spend more money.

More ad spend, more cold callers, endless mailers - the list goes on.

But is this the only way? Do we have to continue spending crazy amounts on marketing?

Well, the truth is that while spending money on marketing is often unavoidable, but it’s not the only way.

There’s a powerful, completely free tool you might be overlooking.

This tool not only attracts motivated sellers and qualified investors but also doesn’t cost you a dime out of your pocket.

So what’s this tool? It’s Google My Business.

Think about it. You’ve probably come across Google My Business before.

After all, when you are looking for a new place to eat, somewhere to visit, or even hire someone for a job, what’s one of the first things you do?

You Google it.

There, you look through a long list of recommendations, consider the reviews and even check out the pictures or videos if available.

But why do we do this?

It’s simple. We crave trust and validation.

Strong ratings mean good quality, a large number of reviews show credibility and visually appealing content creates familiarity.

Now let’s bridge the gap between how people search and how you can be found.

First, create a Google My Business page and be precise with your primary and secondary categories. Select all attributes relevant to your services.

Next, write a compelling description that showcases your expertise and the benefits you provide. Don't forget to add photos and videos that further illustrate your services.

Regularly post content to establish yourself as a local thought leader.

Leverage the messaging feature on your profile so clients can easily connect with you and inquire about your services.

Lastly, don't forget to constantly gather reviews. Reach out to past clients to leave you a review. They build trust and significantly influence consumer decisions.

I recently got an email about a 5-star review I left for a packing company that helped me out in California. Apparently, it’s gotten over 1000 views.

If we’re talking social media stats, that’s not a big deal. But if those are people searching for packing companies… I think I need to reach back out to collect my commission.

Profit Margin To Aim For

This is mainly for the newer wholesaler subscribers. Better to start thinking about this now than later.

When you get your first deal, it’s cool to see that money transferred into your account. And it’s easy to forget that you’ve had costs associated with getting that deal.

Eventually, once you start getting consistent deals, you need to keep reinvesting back into your business. It could start as little as $1,000-$2,000 a month.

What you put in, you get out. Most of the time… anyway. 

But the point is, make sure to be aware of your profit margins from the start. 

A good benchmark is 35% MINIMUM. Anything below that will not be sustainable in the long run.

Ideally, you want to be operating at 50%+. When you’re in that zone, you know you have a healthy wholesaling business.

If you stay disciplined with these numbers in the beginning, it’s easier to pass on bad deals.

But we know it’s typical in the beginning to get in the habit of chasing any dollar or deal. 

Good experience for sure. But again, not sustainable for the long term. 

It’s all about what you keep, not what you make.

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