Ep. 2 - Scale a Property Management Business Through PPC & Pay-per-Lead

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• published: 18 Apr 2016
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How to Scale a Property Management Business Through Pay Per Click and Pay Per Lead The Property Management Show, Alex Osenenko. My day job is serving as the CEO of Fourandhalf, a marketing company working exclusively with fee-based property management companies. I have spent the last seven years of my life helping property management companies become more successful by improving sales, marketing and operational efficiencies. The topic today is how to scale a property management business through Pay-per-click or Pay-per-lead methods. Our guest is a resident expert on anything to do with sales, and he is specifically experienced in the Pay-per-lead world. He runs a company called ManageMyProperty.com. Today we are talking to Jordan Muela, the CEO of LeadSimple.com. Q: Please walk us through the ManageMyProperty.com. What does it do and what is it all about? I started in the industry working for a venture-backed Homeowners Association company back in 2007. From there, we decided to start a business that sold leads. It’s a Pay-per-lead model and it’s called ManageMyProperty. Then, we started a second company that provides lead software, and that’s called LeadSimple. Q: So ManageMyProperty is exclusively for management companies. Is it exclusively for residential property managers, or does it deal with other sorts of leads? About 90 percent of our business is with the residential market. There’s a small portion of homeowners associations that we work with, but the vast majority of the work we do is for single family homes. Q: I see some consistencies with companies being very successful with Pay-per-lead and Pay-per-click and then some companies are more reserved about buying leads. So what is the first reason that people are successful with Pay-per-lead campaigns? Q: So the Pay-per-click works in a similar way except that it doesn’t go to other competitors. So property managers would bid on a position on a certain page for Google search. For example, the search might be “Memphis property management.” You can bid a top spot for $5 per click. You get that click,Some companies have been around since the 70s and they’ve never advertised once. They manage 1,000 units. There are also companies that can achieve 1,000 units in four years. It depends on how aggressive you want to get or how much growth you’re looking for. That’s why we’re talking about scaling the business. This isn’t a sustainability strategy; you use Pay-per-click and Pay-per-lead to grow and execute your marketing plans. What is your next reason to explain why customers succeed? If you ask people whether they think responding is important – you’ll get an unqualified yes. Most property managers think they respond within an hour. We were very happy to accept that assumption until we actually started running a business selling leads, and we realized that this is not the case. We did some research and tracked leads and we found that in aggregate, it was taking 39 hours on average for a property manager to respond to an inbound lead and they were making 1.6 call attempts. As a lead provider, that was not a pleasant statistic to uncover. Q: I’m not sure I agree with that. We record hundreds and thousands of calls in our Pay-per-click campaigns because we want to monitor quality and make sure we can help our customers get real when it comes to selling. We hear time and time again is if the answering service or someone less competent gets to the lead first, it’s usually not a pleasant conversation. Get in the mind of a person who is calling for a property manager; there’s a big need and there are specific questions. They need answers. A lot of times, they get deep into struggles with bad tenants or inspections. I feel like someone less experienced reaching out could be a bad idea, do you not agree with that? Q: I understand that. I think the customer picks up on experience and merit and how well the person is able to answer questions. Even if the phone call is scheduled, I feel like the opportunity to connect is lost and someone else can connect. Or vice versa and having your property manager field sales calls. Property managers are excellent at managing properties, and they are so emotionally invested in their accounts. But if someone new comes in, they are like strangers. They love their portfolios so much but if someone unknown approaches them about managing property. Q: So what is point number three? Why will people be successful using Pay-per-lead services in property management? Offers related to risk include tenant guarantees and eviction guarantees. Be careful and do not call it insurance. You cannot provide tenant insurance or eviction insurance unless you have jumped through legal hoops and can provide insurance. Q: These companies that are successful have a marketing plan and a dedicated budget for portfolio expansion.