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Increase Revenue By 210% With One Simple Change
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Are you actively marketing for motivated seller leads?
You're probably leave $100k+ in revenue on the table by doing this one thing.
Trying to force all leads into deep discount deals.
That's like trying to fit a square peg in a round hole.
Of 100 homeowners interested in selling, how many accept offers 25% or more below market value?
Less than 5%, right?
Let's just say it is 5% and your average wholesale fee is $10,000.
5 deals x $10,000 = $50,000 in wholesale fees
But can you close 100% of them? Probably not.
Now, what about the other 95 homeowners? Are they dead leads?
No - they're someone else's opportunity!
Consider a different approach. Have a conversation with homeowners to see how you can help them.
Those willing to sell their homes off-market at a discount for cash do not want to list their home.
Those are deals you can buy or wholesale.
The other 95%? They'll list for retail offers. Don't ignore them!
Here's the math:
95 listings x $250,000 average value = $23.75M in sales volume.
With a 3% commission, that's $712,500 gross commission.
Can you close 100% of the 95? Unlikely.
But securing 30% of them as listing agreements isn't far-fetched, is it? That's about 28 listings.
At $250,000 each, it totals to $7M in sales volume.
With a 3% commission, it amounts to $210,000 gross commission.
But wait...that's a LOT of extra work though, right? Besides, you're an investor not a traditional Realtor.
Ok, fine!
Hire a listing agent on your team to handle your listing referrals for a 50% referral fee.
$210,000 commission x 50% referral = $105,000 gross referral fees.
Now you have $50,000 in wholesale fees plus $105,000 in gross referral fees...
A 210% increase in revenue without much extra work all with one simple change:
Helping homeowners instead of forcing them into one solution.
PS: This Buy It or List It approach has helped investor-agents on our Legacy team close more deals in a shifting market.
Originally Posted on InvestedX.
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