2 Alex Hormozi Lessons Critically Important for Real Estate Investors

Happy Thursday Everyone,

I went camping this past weekend and the drive to the site was just over 2 hours each way. I took the drive time to relisten to Hormozi's $100m leads and he had 2 marketing lessons in particular that stuck out to me as being very relevant for Real Estate Investors.

I'll reframe them slightly so they use our industry language and not his since his content tends to be difficult to relate directly to real estate.

1. Determining if Marketing or Sales is your problem:

He opened this section of the book by stating its important to make sure you dont mistake crappy sales for bad marketing.

Then he gave this easy to follow test:

1. If your Cost per Deal is LESS than 3x Industry Standard (Industry standard we have found to be about $3800, so 3x would be $11,400), then your marketing is solid and your biggest immediate improvements will come from focusing on getting your Sales and Analysis better

2. If your Cost per Deal is MORE than 3x Industry Standard, then you need to increase/improve your marketing

NOTE: This primarily applies to those of you doing deals regularly. For any of you who are yet to do any deals or have not done any deals, unless you have spent AT LEAST 3x Industry Standard, you should be heavily focusing on marketing before you can even have a realistic sample size to make decisions.

Once you have spent 3x+ Industry standard (we have found it to be a decent amount more to first deal) then you sales skills can START to become a priority, but you absolutely shouldn’t stop doing as much marketing as you can.

2. Deciding when to add more Marketing Channels
The whole first section of the book talks about the main forms of finding leads. They are:

1. Warm outreach - Talking to people you know. In our business thatd be hitting up wholesalers/realtors for deals

2. Posting Content - This would be making Posts about how youre investing and looking for deals

3. Cold Outreach - For us this would be Cold Calling sellers yourself or handwriting letters yourself

4. Running Paid Ads - Obviously what we preach alot here. Sending Mail, Hiring SimpliLeads, Running PPC Ect...

The first one is the cheapest hardest to scale because you are bound by your own network, the last one (Ads) is the easiest to scale but obviously the most expensive.

The GOLD from this section was is his explanation of to MAXIMIZE whichever method you are currently doing. He gave it a typical Hormozi on the nose name of MORE - BETTER - NEW.

In the realm of Paid Ads, the biggest mistake investors make is they shift to NEW platforms or marketing methods TOO EARLY and interfere with their own growth.

Instead, once you find a winner, you should be doing MORE until you start to see a continuous decline in your Customer Acquisition Cost (or for our case we will use Cost Per Lead).

Example if you are doing Direct Mail, and $5,000/month is working. Instead of also adding Cold Calling or PPC or something you should PROBABLY increase your Direct Mail since you already KNOW it works. 

You should continue this until you start to see a rising trend in your Cost Per Lead, then you should first focus on doing BETTER direct mail, repeat until Cost Per Lead trends up again, THEN try adding in something new.

Dan and I funnily enough did this on accident years ago.

We had maxed out Spokane at about $25,000/month and our cost per lead and deal started increasing rapidly, but our version of NEW was going to new markets which was how we scaled over the past couple of years.

Hope this gives you something to think about. Hit me up on Instagram.

-Mike