Jack Thursday - My Concept of Revenue Justification (LA 1796)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Hello.

Steven Jack Butala:

Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

Jill K DeWit:

And I'm Jill DeWitt, broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today's Jack Thursday. And I'm going to talk about my concept of revenue justification.

Jill K DeWit:

Huh?

Steven Jack Butala:

Exactly.

Jill K DeWit:

I have my own concept of revenue justification.

Steven Jack Butala:

If you make a billion dollars top line revenue and your profit margin's 3%, would you rather have a billion dollar company that makes 3% or a $10 million company that throws off 40%? That's what this show about.

Jill K DeWit:

I know what I'd like.

Steven Jack Butala:

And there's different... Me too.

Jill K DeWit:

Yeah.

Steven Jack Butala:

And there's different reasons why one might be better for you. And one might be better for us.

Jill K DeWit:

Sounds like an airline versus us.

Steven Jack Butala:

You said it.

Jill K DeWit:

Thank you.

Steven Jack Butala:

There's a huge pros and cons of both, but really this, you know what the show's about? Running your personal life with revenue justification.

Jill K DeWit:

Okay.

Steven Jack Butala:

Some people don't grasp it. Some people that I'm sitting with don't really fully understand in their personal life revenue justification.

Jill K DeWit:

Oh, I understand it. Maybe I abuse it in my personal life.

Steven Jack Butala:

Yes.

Jill K DeWit:

That's the real topic. Jill gets it. She just doesn't do it. You know?

Steven Jack Butala:

It's pound wise and penny foolish. That's what revenue justification is.

Before we get into it, let's take a question posted by one of our land investors on our online community at landinvestors.com. It's free. Please don't forget to subscribe on the Land Academy YouTube channel. Comment on the shows you like.

Jill K DeWit:

Evan B wrote, "Okay. I've sent out 10,000 units. And I think my mailer's a dud." This is hilarious. So Erin wrote back already. "Hey, at Evan B, I'll tell you that I also sent out 5,000 units all at once. And I thought I would at least have $200,000 in my bank of mine now. The first two weeks are just people wasting their time saying don't mail me. I got my first deal under contract in like six weeks after the mailer. Then like two weeks after that, I got assigned off in the mail and now and then I still get a call."

So from all the interviews I've watched so far, many listen in the car or the gym ,before bed, etcetera. Seems like there comes a point of terminal velocity from sending out five to 10,000 offers per month for six months or more.

At that point, you'll have something like 50, 60, maybe soon to be a 100,000 offers out there, out on the street, as I say, and that at some point, all the random calls that come eight weeks after your mail drops start to come in waves. And they're big enough and frequent enough that you can really get great deals instead of trying to make a lot of okay-ish deals work.

This is so sweet. So Evan B wrote back. "Yeah, I understand. I think I'm goofing up somewhere. This is my fourth mailer and I've struck out each time." So Erin said, this is a whole conversation. "Well, start doing a diagnostic check of everything then. Number one, did you make sure that your properties passed the red, yellow, green test."

Steven Jack Butala:

Ding, ding.

Jill K DeWit:

Yeah.

Steven Jack Butala:

That's what Jill said earlier this week.

Jill K DeWit:

Exactly. Number two, did you offer two over percentage based on the hotness of the market? Three, are your phone number and email on your mailer correct? That has happened too, by the way. And then I'm going to add number four. Are you flipping answering the phone and building a relationship with these people in 30 seconds, finding out whether or not they want to sell and what their number is?