Bad data costs real estate businesses millions of dollars annually. As a real estate wholesaler, you can’t afford to waste time chasing bad leads. Learn how to keep your database clean.
Did you know that 30% of the leads in your database go stale each year
and that it cost companies on average $100 per lead in their database?
Think of how much time you’re probably wasting or your VAs are wasting
trying to call wrong numbers, or how much money you’re spending on mailers
that go to the wrong people.
we’re going to look at the cost of bad data
and how you can make sure that yours is clean.
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First, let’s talk about incorrect data that’s in your system.
Hopefully you’re using something better than spreadsheets for lead management,
but let’s pretend that you are for the sake of math.
Let’s say that I have a thousand properties on the spreadsheet
and that I went through and skip traced all of these about a year ago.
If 30% of my lead list is stale, that’s 300 people.
So 300 people on this list have moved.
They’ve changed phone numbers or their names.
And since this is just a spreadsheet, it may contain duplicates.
If it costs $100 per bad lead in my database, that means I’m
wasting $30,000 a year on these folks.
Now, let’s break down the cost of time.
It could be your VAs time.
If 30% of our data is bad, that means that 30% of the VA’s
time is spent chasing bad leads.
Another study showed that 66% of a VA
or sales reps time is spent on administrative activities.
I’m talking data entry prospect research.
Basically, they’re sifting through all the spreadsheets,
looking for the right contact details.
When you add it all up, the cost of dirty data is astronomical.
First, make sure you’re updating your data every few months.
We recommend doing it every three to six months.
In BatchLeads, you can do this really easily, and I’ll show you how.
In the Properties tab, all you’re going to do is select all of the addresses
you want to skip, trace you go to actions and then skip trace.
It’s super easy to do that.
I mean, that took me seconds.
Plus, the system will automatically get rid
of your duplicates, so it’s like a win win.
Another thing to note, when you skip trace your properties,
make sure that you’re using a program that has accurate data.
There is nothing worse than spending hundreds of dollars
making your data dirtier than it was before.
And FYI BatchLeads data is 97% accurate.
Second, use a list management system.
If you’re not using one, it’s a game changer.
The thing I love about batch leads is that you can sort filter
and tag until your heart’s content, and I’ll show you what that looks like.
Under the Properties tab, you’re going to select all the properties
and I can put them into any type of lists I want.
I can tag them as specific things so that when I’m looking for specific
or maybe people that I’ve already called so I can sift those people out,
it’s really easy to manage that list and make sure
that you’re contacting the right people.
That way you and your VAs aren’t spending hours
sifting through spreadsheets looking for specific pieces of information.
Third, if you’re using a direct mail company,
you’re probably spending two to $3 per piece mailed.
If we go with the 30% dirty data rule,
that’s $3 times 300 bad leads, which is 900 bucks.
Your best bet is to go with an all in one software platform like BatchLeads,
which offers direct mail for as low as $0.40 apiece.
That way, if your data is dirty, you’re only wasting $120 versus $900.
I know we’ve done a ton of math today, but I have one more statistic for you.
The average cost to clean your data is $10 per
lead versus 100 that we talked about before.
Multiply that by the 300 dirty contacts in my database, and that’s $300.
If I spend $300 every few months cleaning up my list, I’m
going to save tens of thousands of dollars in wasted time and
If you’re not convinced, give it a try in BatchLeads for free.
See how much of your data needs to be updated
and see what kind of a difference it makes.
Click the link in the description below
and we’ll give you a seven day trial of BatchLeads for free.
Thanks, everybody. I’m Amy for BatchTV.
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