Tim Heyl Hangout October How Austin Realtor Tim Heyl Built a $2 Million Business by Age 26 with Prospecting and His Database

Transcription

1 Tim Heyl Hangout October 2015 How Austin Realtor Tim Heyl Built a $2 Million Business by Age 26 with Prospecting and His Database Tim Heyl built a $2 million real estate business by the time he turned 26, and in this hangout we re going to be discussing how he was able to accomplish such a feat. Prospecting and grinding on the phones were Tim s major strengths in the beginning, but at a certain point he had too many clients to continue to spend his time prospecting. We re going to examine that tipping point in his business and analyze what Tim did to transform his company into a major force in the Texas real estate world. Transcript: Frank: Hello, it s Frank Klesitz, CEO of Vyral Marketing. Thanks for joining us on this LIVE Google Hangout. I m very excited for the guest we have today. He s a good friend of mine, Tim Heyl. Let me tell you about this guy. By the age of 26, he built a $2 million real estate business. We re talking total commissions, not gross volume. He built this business in a very unique way, and that s what we re going to talk about today. He did a lot of prospecting on the phone, and he realized that when he gained enough clients he wasn t able to prospect anymore. He knew he had to give something up, whether it was working with clients, prospecting, or going to presentations. Eventually he gave up the prospecting and he hired a team to prospect for him. He s basically built human opt in forms of his target audience to bring them into his database. By the way, if you re interested in Vyral Marketing, I encourage you to read my ebook, The Database Reset. It s only 20 pages, and it can show you exactly what we do here at Vyral Marketing to help people connect with their databases. Check it out on our website or request a free consultation. But that s all the selling you re going to hear today. Let s get down to the content. For the first 10 minutes or so, let s get down to the point where you hired dedicated people to make calls for you. Tim: The challenge I had was that I wasn t thinking like a businessperson for the first couple of years. I was thinking like a producer, so a lot of agents go through coaching programs where we learn how to build ourselves and be really good at what we do for ourselves. So, for four hours everyday I was hitting the phones and then going about my regular business and appointments or whatnot. That s when my team started to cave beneath me because I wasn t paying attention. I was just so busy generating leads and doing other things that I had no idea that I was doing this. I finally realized that if I wanted to break through the ceiling that I was at and build a sustainable business that attracted talented people, I needed to spend part of my day focusing on the business, not in the business. It came to a point where I spoke with my MAPS coach and he told me I either had to give up being an agent or I had to give up making the calls. At first, I

2 thought I couldn t give up lead generation, because that s the most important thing. Then what I realized was that even though it s the most important thing, it wasn t the most challenging thing and it wasn t the highest paying activity. That s when I realized I need to outsource and leverage my lead generation portion. This would allow me to break through the ceiling. So that s when I went out to find people to generate leads. I didn t really know what to do I didn t really know what an ISA was or anything like that. What I ended up doing was going to an agent that was in my downline at KW. He was a struggling agent in the market center who was struggling with his own lead generation. I told him I d pay him in the short term if he d help me out. It was a really short term project, but when I got off the phones I realized I had more time to think. I started thinking about the business instead of inside the business. When that agent made enough money to go back selling on their own, that s when I hired my first full time ISA. The results this person got in 8 hours were equal to what I got in 4, but I didn t mind because I didn t have to do anything and we were still getting results. Then I hired a second ISA, and a third, and a fourth, and now we have a call center of about 75 people called Phone Animal. So yeah, it s been going quite well. Frank: Kudos to you, Tim. I want to dive a little bit deeper into a few key things that you just spoke about. The first one was that you did no marketing up to this point. It was purely you on the phone leading the charge. Tim: Yeah, let me tell you a little story about that. Agents come to me today and ask me what they should do with their marketing plans. I use a lot of technology today because my marketing is a lot more robust, but back then I only spent money on envelopes, notecards, stationery, stamps, magnets, and that was about it. I d use the magnets for my business card, and nine months later these leads would have my business card hanging on their refrigerator. It worked really well, but then I d seen you give a talk about two years into my career at a Mastermind event in Las Vegas. I thought your idea was really cool, but I didn t want to pay for it. I was going to do it myself, but about 6 months went by and I hadn t done anything. So then I called you and told you I wanted a short term contract because I wanted you to start it for me and then I could do it on my own. Then a couple years into it I actually said I m quitting and hiring someone in house to do this. We quit for a while but it actually ended up being too expensive to do for ourselves, so we came back to Vyral. But your company is actually how we communicate with our database today. Frank: So the key there was that he just said, what s the quote? I d rather be dumb and persistent than smart and thinking about it. But let s clarify your goal. It wasn t to set five appointments, it was to find five people that wanted to sell their homes. You were measuring nurtures, not appointments, so why don t you tell us about that. Tim: Well, I read The Millionaire Real Estate Agent, and Gary Keller said your business is your database and your database is your business. I didn t quite believe it because I thought a database was friends and family. I just thought I could cold call, and I didn t realize that I was

3 growing my database in doing so. I would later realize that I was growing the most precious asset in my entire business. In order for someone to be put into my pipeline, they had to meet 5 criteria. They had to have the correct contact info such as their . Second, they needed real motivation to move like a job or a downsize. Third, the timeline needed to be inside of 12 months. Fourth, there had to be an opportunity for me, so I needed to know that they were willing to meet with me when the time came. Fifth, a seller directed follow up was necessary. I wanted them to tell me an appropriate time to contact them. I let them direct me on the follow up date. Guessing and assuming caused me to miss out on a lot of opportunities. Frank: That s golden. Let me repeat those criteria: You need the correct contact info, they need real motivation, they have to be willing to do it in 12 months, you need an opportunity to get the business, and they have to tell you when to follow up. And that s the 5 criteria that you pass into your database so you re not putting a bunch of crap leads in there. Tim: Yeah, so what happened was we talked a lot about going from E to P. From Entrepreneurial to Purposeful. When we start as entrepreneurs in our business we do a lot of things really well just naturally. We are professional wingers. As you start to build a business, the only way to replicate what you do at a high level and succeed through other people is to become very purposeful about what you do and why you do it and how you do it. I didn t come up with these 5 criteria until I hired outbound calling assistants. Here they were, uploading people to my database and I would go back and listen to some of the calls and realize we were not on the same page on what we wanted to put in the database for future follow up. I had to go back and ask myself What is specifically causing me to give the thumbs up or the thumb down? I had to really jog my own mind and say Where am I drawing the line? I gotta come up with a system here so I can succeed through other people. Now, I have 75 guys in a call center following that system. Frank: 75? Tim : At Phone Animal, yes. Frank: That s incredible. Tim started in real estate, then started a company for other agents that provides prospecting for you, and that s Phone Animal. The fact that you have 75 people making those calls is pretty cool. Tim: What s really cool is that maybe a year ago, I realized I was missing out on a massive opportunity. We had a conversation with you about our goal being getting as many addresses as you can. Not spam lists, but people who want to keep in touch with us. My goal for the last 5 years have been go meet with people who meet those 5 criteria I mentioned before. It started jogging my mind as I m sitting at a mastermind event with Gary Keller and he is saying that our goal should be to get as many people out there as possible using our website as their site of choice for finding properties, education, and real estate news and information. So then I thought, Maybe in addition to finding my 5 nurtures for the day, I need to find 5 names of

4 people to stay engaged with, so I am on top of mind for this group. Here I am, calling neighborhoods, where it s taking me 20 calls on average to find that qualified buyer. Now, I have 19 conversations where I m not doing anything with the conversation or the time spent on it. So I thought, What would happen if we continued our script, and once we found out they weren't thinking about selling, we continued the script about how we want to stay engaged with them if that s what they want to do. We tested it out and found that almost half of the people, you can effectively explain the Vyral Marketing process, and they will come back and say yes. Without doing any additional work, we have been able to collect exponentially more addresses, making our Vyral Marketing process that much more effective. Frank : The three steps to the Vyral Marketing plan talk about rounding up the s of people you want to communicate with, but also adding your database every day. We recommend adding three people per day, but you are doing a lot more than that. So let s get back to some of these conversion numbers. You were saying that you were making 100 attempts to get 5 nurtures? Tim : No, when I was doing it personally, it would take me about 100 attempts to get about 20 conversations, which would get me about 1 nurture when I m cold calling. There was all this time that went by, and we wanted to start benefiting from those other 19 conversations we were having. Frank : So, you decided to start getting more addresses. Of those 19 on average that said no, how many of those people were you getting addresses from them? Tim: When I was at the very top of my game, I was getting about half. I would get 8, 9,10 addresses a day. What I found when I was farming a geographic area, what I was offering was very valuable. I would say Frank, here s the deal. I really appreciate your time today. No problem if you re not interested in selling. But just out of curiosity, we send a once a month market update video to a lot of your neighbors here. We take all the information you can t find online, like sold data, avg days on market. A lot of your neighbors are kind of wanting to know about it. Is that something you would also like to receive? 50% of the time those people would say yes. I was actually, for a while, getting 30, 40, 50 addresses in a day s work. This was me at the top of my game. Every month, we were getting hundreds of addresses. When I leveraged this out, the percentage of addresses decreased, but we also changed our strategy. We weren t going to farm one geographic area anymore, we started calling zip codes all over our market. We decided we weren t going to send all these neighborhood market updates every month, so we just decided to send a seller update and a buyer update, educational videos. When we offer the educational videos, it s a much smaller percentage than 50%, but we are still getting a ton of s every day. If you re going to offer something specific for their market, a huge portion will say yes. If you offer to educate them, you are still going to get a big portion. It will be a smaller portion, but it will be easier for you to scale.

5 Frank : Let s talk about you alone, when you were doing this, and a lightbulb went off in your head, saying you should ask for addresses, and you started adding documented homeowners in your market every day. When you started scaling up, how many prospectors do you have on your team right now? Tim : We ve got about 12 prospectors. Frank : Ok. So you have 12 people making calls outbound in Austin, trying to find seller nurtures. How many s are those 12 people adding to your database every day? Tim : We are in four markets here in Texas. San Antonio, Austin, Houston and Dallas. I gotta be honest, I haven t checked the numbers in a while, but it s a big number. We are adding a ton of s every day. With the whole database reset process, we are following it every month and dumping it in the system. We are sending them educational videos, and they can unsubscribe if they want. Before we even offer to add someone to our list, we say Who s the real estate professional you go to when you have questions? When they don t give me a specific name, that s when I go into the script about getting their . If they ve got a best friend, me staying in their twice a month isn t going to be that helpful. But if they say they don t really have anybody, those are the people I wanna see over and over again. They are going to constantly be reminded and think of us, or using our website as their website of choice. We used to ask, Do you have a go to? and a lot of people said yes, but couldn t answer a specific person. So that s when I started asking, Who is your go to person? Frank : Let s jump to the following up with the people that watch the videos. You are adding hundreds of nurtures a day, these s go out. Do you have anyone following up with the people clicking the links in your s? Those names that we give you. Tim : Yeah. We have an inbound lead coordinator, and every month we get our click report from Vyral Marketing. They review the list, and start with the people that actually inquired on something, then the people who clicked a CTA, and then people who generally watched the video. A lot of times they will stick with those people who click the call to actions. I don t know the percentages, but I know that every month we get a good list. Honestly, a lot of the times it's a past client who isn t quite ready. We are finding nurtures, people who are already in our database who all of a sudden say they are thinking about selling, so we can put them on a follow up sequence. We aren t taking this click report overnight and making deals, but it is highlighting nurture opportunities from a list of people we already have, but didn t know they were looking. Frank : I want to go a little bit deeper on that. Obviously, you are making good money, things are going well, and you have the funds to put the lead generation off. You are so upstream that you can handle the many months that it will take to guide that nurture from a listing to a closing. It s so far ahead, but you didn t start there. You started with where you needed the deal right now.

6 So, why don t you talk about the spending of money on marketing, on hiring a prospector, or Vyral, to somebody that doesn t have much. How did you deal with those challenges of reinvesting your money into marketing that was farther into the deal than right now? Tim : So Frank, when we get into the business, when we start selling as a real estate agent, or when you jump into a career as an entrepreneur, there s two resources that all business people have: time and money, right? And when we first get into the business, most of us have very little money, and a lot of time. So we want to use the resources that we have, and what happens is if you use your time effectively, you re going to generate a lot of deals. Eventually those deals close, but you have to spend your time working those deals so your money comes up. You ve obviously got money but now your time has gone down and you have to use a mix of time and money. Then you reach the point where I m at today where time is the most precious resource I have because I have very little of it open and available, but we have a lot of money coming in because the business is going. You start out like this, you get to here, and then you go to that. This is a very difficult time, because you want to be investing in the future, and yet it s very difficult. It s very challenging to mentally go there. There s a couple things I ll say about that. One is whenever you invest in anything marketing or prospecting or anything in our business, the nature of the business is that it s going to take time. It could take six months to pay off, it could take nine or twelve months to actually pay off. So what you have to be doing while you're investing in prospecting or marketing or any of those things, what you have to be doing on the side is you re always going to be spending your time on now business. Now business would be doing open houses, door knocking, networking with your sphere, going out there and actually spending the time that you have going and finding ways. Maybe it s doing phone duty in your local market center. It s doing things that can get you business today while you re investing in business for the future. That was the hard part. Like, for me in my first year, Frank, I did I spent four hours a day every day on the phones my first year. Four hours a day every day. So 250 days times four hours means about 1,000 hours on the phone. I closed 18 deals that whole year, and nine of those deals came from prospecting efforts, and nine of those deals came from my sphere, came from friends, family. Just kind of deals that fell into my lap or open houses that I was doing. It came from the now business that I was working on. I only got nine deals out of those 18 from the thousand hours I put in. So what happened was though I generated five leads a day, that was 25 leads a week, 100 leads a month, 1,200 leads a year. So at the end of the year, I only closed nine deals, but I had 1,200 leads in my pipeline that I qualified and put in there. So the next year, the second year, I closed 65 deals and 55 of them came from my outbound prospecting efforts. Frank : From the previous year? Tim : Yeah! So it went from 9 to 55. So the challenge that we have as new agents in the business is that we spend money or time and we expect the results now, but what everybody needs to realize is it s the follow up game. It s the database marketing game. It s get the

7 information, get it in your database, follow up with it, and just know that it will pay off over time, but you have to figure out a second way to make money now. There s no magic pill. There s no lead source out there that s just going to guarantee you tomorrow you re going to wake up and have all the deals you need in your pipeline. It is a time on task over time, right? And whether that s a lead source or a marketing company or prospecting, hiring an outbound prospector, it s going to take time, so you ve got to figure out how to take care of the now business and that really, they re two separate things. Frank : Yes. Well, you have the business you re in now and the business you re becoming. You have to work both. So you were very fortunate to be coached by Gary Keller, who started Keller Williams and is one of the most brilliant people I ve met. He gave you a model for budgeting, and I think we should talk about this a little bit. When you re building a business, and your check comes in, your revenue, that s not all yours. It could be in the beginning if you re playing all hats, but not if you want to grow your business in some way. Certain percentages of that money should be set aside for salaries and staff, for commission rates and marketing, or whatever, and then you re left over with the net. Could you explain the budget model? How you think about your money, and what percentages go where, and at the end of the day, how much is leftover for you? Which is a little bit different for somebody who s used to keeping all of their money all the time. Tim : Sure. Yeah, so I ll give the most simplified version I can give over this since we don t have the numbers in front of us, but if you open up The Millionaire Real Estate Agent book, it will give a detailed budget model. The basic model that I followed my first few years in the business was essentially you want to pay out 30% as a cost of sale. So 30% you would pay out as commissions to agents on your team to leverage yourself out of being the one who needs to do the deal. if you re a brand new agent and you do everything by yourself, you will have zero cost of sale. Frank : So basically what you re saying is, you pay the buyer agent 30%, you pay your listing agent 30%? Tim : You could. What happens is it s an average number. So what Gary always said is, pay your buyer agents 50, your listing agent only about 10. The reason you can get away with that is when you re doing hundreds of deals, and that listing specialist, all they do is go out on the appointment. They re making 10% to do a tiny part of the deal. Another way you could do it is some teams just say, We re going to pay you 30% across the board. So for us, what we ve done on our team is paid 40% for buyer deals and 20% for listing deals. So it still hits home at that 30% number. Frank : Another way to look at it is as a three time mark up on the services of the professionals working in your office. Tim : There you go. That s a great way to look at it.

8 Frank : So 30% to the agent. Tim : Now you ve got your overhead. A lot of agents, especially newer agents and single agents, like to brag about how low their overhead is. They say they don t have any expenses. At first glimpse, that s amazing. Then you take a step back and look at what they re actually saying. What they re actually saying is I m taking all the money I make and putting it in my personal bank account. I m not actually reinvesting in my business. If you re going to start treating this like a business instead of a job which you don t have to do, a lot of real estate agents love their careers and are good at their jobs. But if you want to start a business, you ve got to reinvest and you ve got to reinvest in the future growth. Reinvesting, what Gary suggests, is reinvesting about 30% of your revenue back into your business, and he says that you want to average about 10% for salaries, about 10% for marketing and lead generation, and about 10% for everything else. Everything else would be rent, technology, supplies, equipment, things like that. Insurance. Frank : So basically 40% of what you earn is going to people, a percent to support staff and 30% go to people who do the deals. 10% goes to overhead, and then 10% to marketing. So it s interesting to look at this. If you re spending 10% of your gross on marketing, or lead generation, that s really a 10x return. Tim : Right. That s the goal. So what Gary says is your goal should be a 10x return. You should spend 10% of your entire budget on marketing, which means if you re going to spend money, you should expect to average a 10x return. The good news is a 10x return is really good. Some people say that s impossible, but what you have to remember is some of the deals that you close, you won t have any cost associated with them. When your grandmother buys a home, you didn t actually have to pay money to market to get that deal. That deal just kind of fell in your lap. So if you only get a 5% on your next deal, that actually averages out. Frank : Okay. So the way I like to look at it I want to share something with the audience here. At some point your business gets so good, a lot of leads come from different areas and whatnot, and you can t really track it, that s kind of the constant battle is finding where your leads came from, is that basically you re saying you take 10% of whatever that GCI is, and maybe since in real estate it s up and down all the time and you look at the average of the last three months. So let s say you re doing $20,000 a month in gross commissions on average. You would reinvest $2,000 a month into the marketing every month to be in front of your target audience, a blend of people you know and also the people that you don t know that your prospectors what you pay your prospectors, hourly base or small commission I assume. If you want to learn more about Tim s prospecting business, go over to his Phone Animal channel. We did the same Hang Outs with him on that where we talked all about the numbers and how his prospectors work. So your prospectors, that s lead generation coming out of the lead gen budget, is that correct? Not the 10% of the admin budget.

9 Tim : No, it s directly lead gen. Even though it s a person, it s specifically going towards generating leads. So we put that in our lead generation portion. Frank : Great. So that s a good little framework for the money. So basically at the end of the day, you re netting 40% of the bottom line, is that correct? Tim : So that s the model. What happens is as you become more and more removed from business, and if you look at the 7 levels of the Millionaire Real Estate Agent, the challenge with that model, and it is the ideal model for our industry, the challenge is you re only one person away, one person who gets sick or one person who goes out of town away from getting a job back, right? In that model. If you want to grow your business, I took a step to grow my business to become as many layers removed from getting any specific job back that I didn t want as I possibly could. Frank : So you have two of everybody, at least. Tim : Have two of everybody, and yeah. Essentially continue creating opportunity for your top people to be able to go out and grow something bigger. So the whole expansion model is actually one of the main reasons for going out and expanding is it s actually an opportunity for your top people to go out and build their own team under your team. So they don t have the need to leave and start their own team from scratch. They wouldn t want to do that anyway, because it s a pain to start from level one, so you might as well let them start with a business that s already at the six or seven level, use all those resources, and get their own business going within that. And so that s the value of expansion, and the greater value is now you have these really talented people that are staying with you long term, and you become more and more removed from getting a job back. As you do that, you give up a little piece, and a little piece, and a little piece, and you continue to give up a little more and more. So today, my business will net about 28% to 30%, not 40%. So I ve given up more pieces to become more removed. I haven t had to be part of a transaction, though, in two years. Frank : So that s really the full transition from getting paid for what you do to getting paid for what you own, and you ve really completed that journey, which is incredible. Because a lot of people watch this and then go wow, you built that, but it s the mental models with the money got you up to that point to reinvest correctly without getting to go overspent on one category, I would think. Great, Tim. This is some great information for everybody, so thanks for sharing this. Let s go a little deeper. I told the audience we d get back to this, is we talked about building your database and how you levered that up, we talked about how you called the open and click reports, but we didn t really talk about actually creating the content and the videos. So what tips could you give us to actually create videos that people actually want to watch that actually get the most engages? What have you learned over the period of time working with us and creating content that s good.

10 Tim : Yeah. So sometimes I ve created really good content, and sometimes I ve created really crappy content, honestly. I ll just be completely honest with you. When I create crappy content, our engagements are poor. The clicks that we get are honestly a little bit disappointing, so it s actually caused me over the years to spend a little bit of time. So the first thing I do is actually block out time to prepare because I didn t used to do that. I used to just block out thirty minutes to make my calls to make my videos, and I d show up for the thirty minutes and we d scrounge together whatever content we could. And that s how it starts, and that s how we started getting stuff out there. But then I realized if I blocked out time to actually find real content, that would be helpful. So there are a couple of things. The point of these videos are not sales, right. The point of these videos is to educate the consumer. If you educate the consumer, that s what they want. If they want to reach out to you or connect and engage with you, they will. Because we re just trying to educate the consumer, what we ve started doing is going to our agents ahead of time. We go to our agents. I m not there producing every day. I m not at listing appointments. I m not at inspections. I m not at closings or negotiations, so I go to them and I say, What are you seeing going on in the market right now? First of all, are you seeing anything going on at a macro level? Are you seeing changes in the market? Are you seeing a slowdown in showings? Are you seeing a slowdown in inventory? What are you seeing happen? If I can find a story there, then I am definitely capturing that. If I don t find anything there, than I m saying, Then what s going on crazy at one of your last negotiations or one of your last inspections? Has there been anything out of the norm that you wish you could go to all of your future clients and tell them to be prepared for this or make sure you do that before you get ready to go on the market? Is there anything that you wish you could tell to their face about what s been happening lately? When you go and ask a bunch of different agents those same questions, you re going to get back enough responses that you re going to actually have two really good videos. The best thing to have is a story. People can engage with a story, they can relate with a story. I ll often bring on one of my agents onto the video with me. I ll ask them to tell our audience today about an inspection they just went on where X, Y, and Z happened. I ll then ask them to walk us through it. He ll actually go back and tell the story of what happened, how it affected his client, and how his client would have prepared differently before getting into the market. He ll just give an engaging story that makes the likelihood that someone who was listening will click and watch the video next time significantly higher. Stories and going directly to our agents who are on the ground day in and day out asking them for the content has been one of the best things for us. Frank : And that s going to be even more important for you as you leverage yourself out of the day to day interaction with the consumer because you re scaling yourself. This is a great transition to this, how are you handling the branding of the Heyl Group? If you re in all of these videos in all of these markets, explain to me how you re making this work when you re in so many different markets. How are you making Vyral Marketing work with your agent expansion? Tim : A couple of things: First of all, I am in almost all the videos. Sometimes I ll have an agent with me, but at the end of the day, we are marketing the brand and services of our company. It s the individual agent who can make phone calls to past clients, write a personal note, or pop by. We realize that as we re growing, we have to have streamlined marketing for our company that

11 one person can control. When you rely on each individual agent, you know, we don t have 50 agents or 100 agents yet, but we will, and when we get to that point we cannot rely on each agent to send out their own video to their own database and make sure that will happen. So we decided to just keep it centralized and keep it about the brand. Honestly, it s a way for me to stay engaged, with only blocking out about 30 minutes a month, with my company. You do it too Frank you send all of your clients a newsletter every month that you handwrite and it s an opportunity for you to stay engaged with all of us. Frank : I write you guys a weekly message, and Tim, I m now taking all my weekly messages and turning it into a monthly newsletter with every single thing I write, and it s going to be mailed to you. It s still me, even though we re very leveraged, I still view myself and Gary Keller said this, I m still marketing, and you ve allowed me to leverage myself, but I m the ultimate person responsible. Alright, so you re in many different markets, using the brand of the company, so you re still in the videos even though it s all over the place and you re expanding. Let s talk about how you re using this for recruiting. So, you have 75 people making prospecting calls, you re looking for agents in all these markets, you have to teach them the mission and values and it has to come from you, the visionary. How in the world are you recruiting people using video? Tim : You ve been super helpful with that for us, actually. Our San Antonio team lead came from a Vyral Marketing that we sent. Basically, what we did was, I put a two minute selfie video together that basically just say, Hey guys, this is Tim Heyl with the Heyl Group here in Austin, Texas. We re a real estate team of people and we re expanding into San Antonio. Here s the deal with that, here s the story of our team, it was a quick, two minute video. I explained that the reason for the video was to find one really special candidate and this person needs X, Y, and Z criteria. If this is something that you might be interested in, submit your information on the box below and we ll reach out to you. We would love to connect. We put this together in our standard Vyral s and we went to the Texas Real Estate Commission website where we found a list of all the s of all the people who had registered to take the test to become a real estate agent. It was hundreds, if not over a thousand, s. Some of these people didn t even have their license yet, others had them and joined a broker. We didn t really care. These were all people in the very beginning stages, and we just sent it out. It was pretty amazing, we got a ton of responses. We actually had all of the leads go into our CRM, we were able to schedule consultations with them, and we ended up finding a really, really good candidate. And then we sent it out again six months later and we found our second candidate in San Antonio that way. We just did it in Austin and we found our first candidate in Austin using that same method. After having some conversations with you is that ing marketing is great and Facebook targeting can be even better for this kind of thing. We re working now on using that same method, but instead of just blasting out an , taking that video and marketing it on social media like you do so well. Frank : Good, and that s the next step. So we discussed how you have to build your own database, leverage it up with a prospecting team, make two videos a month for that database,

12 call the people that are watching the videos, then we moved into the budgeting, how that s working with agent expansion and recruiting. We ll spend a little bit of time right now on the ultimate, which is what everyone wants to jump to, but it s the absolute last piece, is starting to spend money to get your videos in front of your target audience. That s where the advertising comes in. If you re watching this video, it might say sponsored above it on Facebook or popping up in front of you before watching a video. You can define your target audience on Facebook and YouTube very precisely. We ll tell you how much it costs to get in front of that market, depending upon people bidding on it. Usually, if it s video, and it s on Facebook and YouTube, it s actually the cheapest of all because no one is doing it. So, you can get in front of that audience for $10 20 a day, whatever it is, and that s one of the new things we re doing here at Vyral. We have about people in our advertising program and we actually take those videos, so you re out there marketing to your database, but you re also getting those videos in front of target markets you can buy online. We do that for your Phone Animal and we will be doing that for your recruiting. Any results on advertising you can share? Tim : You ve done a really, really good job of coaching me through it Frank, in that you ve really taught me that people are smart, people are savvy they don t need a sales pitch when you re advertising online. By simply having a logo or a link to a website, if they see something that interests them, they ll see it, they ll do some reading, and they ll connect with you if they want. You ve helped us get some webinars, some videos out there where and we re able to educate people just like you do. We re able to come from contribution, come from education, and just have it out there. If you want to find more about Phone Animal, the link is out there. Frank: Right. You don t have to force them down some squeeze page and tell them to BUY NOW. I think every time you do that, it destroys your credibility. Tim : I have to be transparent about this: I think Redfin has done a very good job of that. What they ve done is said, The consumer is smart, the consumer wants more power, more autonomy to be able to get in there, learn the process, and do a little bit more on their own. People will still hire an agent, but they want to engage with an agent when they want to engage with an agent. Redfin doesn t force them to register to search for property, doesn t force them to register to get a buyer or seller guider they just kind of say, Hey, look, here s the information, we have experts here when you re ready. So, I ve been kind of thinking about changing the way we do things a little bit to help create more power and autonomy for the consumer, and just be here for them when they need us and want us. Frank : Let s talk about that because that s hard. When you come from a direct response marketing background, and you ve preached in the beginning of your career that branding is a dirty word and you want to track everything, right, and you want to drive everyone to a squeeze page they can t even enter your website without giving you their blood type! Tim : Think about it. For us, on my Boomtown site, for example, the conversation rate is somewhere around 5 out of 100, the other 95% of people are just bouncing because they don t

13 want to register. What if you could have all 100 of them still searching on your website, playing around with everything on your branded site. There is still a certain amount of users who are going to reach out, but you actually increase the number of viewers you have if you didn t force the registration and force the analytics and all that, which we re so prone to doing. Frank : Let s say someone goes to your website, Tim, for our advertising clients, there is a retargeting pixel and then, if they opt in, we also get their . We take those s and upload them to Facebook. Basically, if someone goes to your site, they re going to see you on Youtube and Facebook and everywhere else. The number one headline that is killing it with that, 30% conversion rates, is that Zillow s is 7% accurate. So, the ads essentially say, If you re on other buyer sites, they re not as accurate, come back to mine You re seeing more and more of this: someone goes to your site, they express interest, and now they re seeing you online and getting a lot of great content. Sometimes it s hard to get all that stuff out there without a bunch of paywall and opt in stuff. Even if they do opt in, they often just give a fake too. I ve been seeing that a lot more when people opt in for some of our stuff. I have one last question I want to ask. For the Vyral Marketing clients who aren t seeing results, and they want to see results and they watch this hangout and they want to be like you Tim what tips can you give to be successful on the Vyral Marketing plan? Tim : The first one I would say is you need to block time. You need to make it the same time, the same day, the same place, every month it s got to become a habit. You also need to block time to pick your content, not just shoot it. Both of those things are super important. You also need to actually use the click report. So, when the click report comes back, you need to have someone who s job it is to actually reach out to those people. Those would be the key things. Frank : That is true. First off, it s just showing up to the call to get your videos made. You need to be prepared and give something good. It all starts with a good headline. You want to figure that headline and the point to the video first that s the work. What s the story, what s the question you re going to answer that s relevant? That s the work. Once you have that it s all downhill. When you get the report back, if you re building a business, it s going to be hard to find time to make those calls. If you could hire someone dedicated part time it s an easy call, it s $10/hr work to make that call. We talk about those calls in the database reset if you re interested. Tim : The thing is, all you re doing on the call is finding out whether they have future plans to buy or sell. It s $10/hr work because you don t need an intensely skilled agent who is going to close them on an appointment. Usually they re just now thinking about getting evolved and what you need more than anything is their timeline. If you can figure out their timeline, all that person needs to do is find that out, schedule a follow up call, and have a professional call back at that time. It s not expensive, it s not hard you just need to do it or find someone to do it. Frank : I want to thank you all for coming to these hangouts, I hope you find them pretty enjoyable. If you want to learn more about Tim and his business, Google The Heyl Group and

14 you ll see all of his videos. Phone Animal is a company he started that, if you want to leverage up your prospecting, they will make the way up there prospecting calls. They will give you nurtures that want to sell a long time down the road. If you re having trouble growing your database and you re a Vyral client, go hire Phone Animal. They ll make the prospecting calls for you, have legit conversations, do it well, and they ll get the s. You can have the s put right into your Vertical Response account at Vyral. It s a beautiful consistent system to help you grow your business. Thanks for being here today Tim. Tim : My pleasure Frank, thanks for doing it. We ll talk soon.