Do you generate leads for your real estate or mortgage business?
If so, this might be one of the most important posts for you to study. The reason why is because you’re going to learn how turn one of your largest expenses (advertising) into a very profitable part of your business.
The basic strategy many businesses use to recover their investment into advertising is to offer the new leads one or more upsells. In other words, they offer every new lead a great product at an attractive price. The income generated from this initial sale to the new lead helps the business offset their cost to buy the lead. Upsells allow businesses to offset their advertising costs and they can also be transformed into very profitable investments, too.
You can create many different kinds of upsells to promote to new leads you generate. Some of these might include books, how to courses, how to classes, seminars, and different services. One of the best upsells, in my humble opinion, is a monthly membership where members pay you monthly to receive the benefits of your membership.
Let’s say you create a membership and charge members $29.95 per month. Your membership fee is charged automatically each month so this income shows up in your bank account without having to chase anyone for payment. Each new member in your membership is worth around $360.00 annually ($29.95 * 12 months).
This membership now gives you the ability to make lead generation extremely profitable. Even better, it provides recurring monthly income not dependent upon any home sales.
You invest $1,000 to run lead generation advertisements. These lead generation advertisements attract 50 new targeted leads to your business. Your average cost per lead for this campaign would be $20 per lead (1,000/50 leads).
You would obviously offer your membership to every new lead you generate. Each new member you enroll offsets your advertising expense as follows:
1 new member = $360 of annual income
2 new members = $720 of annual income
3 new members = $1,080 of annual income
4 new members =$1,440 of annual income
5 new members = $1,800 of annual income
In this example, you would only need 3 of the 50 leads to become members in your membership to completely offset your entire $1,000 advertising investment. Every member you enroll beyond the 3rd member is profit for your business. In fact, the 4th member generates a $440 profit, which is a 44% return on your $1,000 investment. The 5th member generates a $800 profit, which is a 80% return on your $1,000 investment.
Where else can you find an annual return on investment of 44% or 80%?
Plus, you still have the opportunity to sell homes and mortgages to all of these 50 leads. This membership profit flows into your business before you do any deals.
Not too bad, right?
More importantly, you can use your membership income to buy more leads for your business. This will allow you to increase your home sales and create a new monthly income stream at the same time.
Well, if this sounds like something that would be helpful for you, you might want to check out my new Done-For-You Membership where I provide everything you need to start your own membership including newsletters, sales letters, and lead generation advertisements. You can actually have your membership up and running this week.
To learn more about how you can have your own membership this week, download the PDF here:
P.S. For more information about how to generate free leads, read this article I wrote here: