Anyone here using billboard advertising? What is the cost ranges per month on something like that? I only ask because I seem to be getting buyers interested in houses in one particular area more than others and this area has a major interstate going through it with billboards on both sides all the way down. I have never seen a We Buy Houses ad on any of them so I would be the first. I would be able to get my name out to literally thousands of commuters a day plus anyone that lives near the highway. I’m figuring at least $500-1000 per month, how far off am I? Is it money well spent? Would this brand my name quickly and get my name out there fast? My message would be along the lines of a bandit sign but WAY LARGER, short sweet and to the point. Stop forclosure, we buy houses, any condition, phone number, URL. The target area is a town that is up and coming, being revitalized and property values are coming up. Its slowly getting a creep in of NYC people that are moving a little farther out to avoid some of the prices that plague the towns closer to the city. Town has had problems in the past (impoverished areas) so there are plenty of good rentals that are in need of a lot of work, with the right rehab they would be profitable and show good appreciation of the next 4-5 years. Better properties could be used for young professionals commuting into the city, lower end could be section 8 (there is a large population on public assistance down there). Am I stupid for thinking big and spending an assload on a billboard? I am thinking start big and brand the name then follow up by using bandits all over town in areas that look like they would have plenty of burned out landlords or forclosures.
Not only do I use billboards to advertise my company, but I own 4, 2 I rent out. Of course prices vary depending on the location, size, daily traffic, lights vs. no lights, etc. For a full sized 14x48, lighted billboard next to a major highway, expect to spend in the range of 3-4-5k a quarter. It will also cost several thousand for a graphic designer and printer to create your work of art. The stupid “We Buy Houses” crap that’s been played a million times won’t help build a brand identity since there is no unique selling perspective.
With the ones I own, I lease the land from farmers and built the structures myself (Yes, I hoisted up the steel beams myself). I would not recommend going this route or any other professional advertising unless you have a substantial marketing budget. Even if a few deals come rolling in immediately, it’ll take a couple months to materialize and you might be out 20k, money you could use for your properties. Don’t go crazy spending an “assload” of money on advertising until you have the money to burn, because it might be a huge failure. I’d go for more of a smaller 5x11 foot billboard made out of 4x4’s and OSB if I were you.
Also understand, you’d be choosing mass media. 1 out of 10,000 might be interested in your ad. Make your ads appeal to the masses in this respect so they are more effective. Instead of “We Buy Houses” make it “Report a _______ House for $1,000!” They complete the same objective of finding properties, the latter makes a better ratio of the audience interested.
Link of interest:
Maybe I’ll hold off on that for a while…guess I better get plenty of bandit signs for that area. I’m also looking into classified ad space, hoping I can buy a long run and get the space cheap. The per weekend fee is too much for the return I think.
In the beginning, you can’t beat the good ol’ boots on the ground method for finding deals. Saves you money and you get to intimately learn the area. All it costs is time and fuel.
Business owners make the mistake in thinking every expenditure for their company is an investment, therefore justifiable. Focus on your core competencies! For me, the profit from my first deal was the only capital I had to start my business. Some go out and buy a new truck with 2 thousand dollars worth of graphics on it, new power tools, spend an absurd amount of money on stupid promotional crap like clothes with their logo, pens, umbrellas, logoed golf balls, tote bags, and coffee mugs. When I started I couldn’t even afford business cards. Luckily, REI does have to be a marketing intensive business like retail or restaurants. You can do your first couple deals and survive without much marketing.
I have 3 Billboards up on Interstate 10 in Florida… I negotiated very good rates for them… $250 per month!!
Sometimes I get 5 calls a week, sometimes I get none in 2 months… Very hit and miss! One great thing it is for is when I am taking a client around to look at property… If at all possible, I take them by the billboards and say “See, we market in a BUNCH of different places”…
One or two sales a year will pay for them! I say go for it if you can get the price I got…
Doesn’t look like it’s a very busy freeway…
It’s dangerous territory to consider your marketing an investment, thus it’s okay when a deal (sale) or 2 a YEAR will pay for it. You can’t judge your marketing material based on the money from a deal it brings in. This would give you a lot of wrong information as it doesn’t account for several variables. Marketing should be judged on the number of inquiries and deals it brings in, not the quality. The quality of a deal is contingent on the price you can negotiate, nothing else. It’s not the location of the billboard that should be attributed to the first call bringing in a deal worth $250,000, because the next 8 months you might not get a single call from it. In this example, 1 deal every 8 months, the billboard is ineffective!
Hey Rich…you could think outside the box…if you have a specific market / part of town in mind, you could scout out a location, (side of a building-corner location ) Approach the owner and see if he would be interested in letting you hang your sign / banner for a percentage for every deal that you get.($500/$1000 bird dog / finders fee ) Start with the banner…test…if you get deals, maybe go with a bigger sign,lights , other locations etc… This will minimize your start up costs,only the costs of the banner,production, hanging etc…( no monthly fees ) upside for owner…potentially much more $$$
Pete
Here’s another way to test the waters without breaking the bank. You know all those mobile signs businesses use usually to advertise promotions of some sort? I think they’re about 4’x6’ and around here they’re black with neon pink or yellow lettering.
Anyway, go around to businesses that don’t use them but own/lease a building on a nice spot, preferrably without many of thes types of signs around to compete for attention. Rent the space to place your sign, probably somewhere around $50-$100/month. Rent the sign (unless you can make a nice looking one) for another $150-$250/month.
I saw a quick lube type place do this last summer to attract customers from a competitor that was closing. They rented at least 15-20 spots within a few blocks of their business. It really stood out and I thought it was a great idea.
well, for what it’s worth, I"ve spent 17 years as an ad agency copywriter. If you’re doing brand awareness, outdoor (billboard) is one place you can really stand out. It’s one of the best guaranteed frequency vehicles (i.e. high percent of people drive by it everyday).
Here’s the rub:
I saw an 'Avoid foreclosure" billboard here in Nashville a couple of weeks ago, It must have had 40 words on it. You should never have more than 7-8 words on a billboard. Phone numbers? When’s the last time anyone wrote down a tel number off a billboard? Maybe a memorable website domain. Billboards can be tricky. keep it simple…
“Avoid Forelclosure”…www.catchy-web-address-here.com
But then I’m just doing those pesky little bandit signs… : )
A vanity number can be remembered, probably just as easy or easier than a domain. I’d try to have both. Mine is www.PaulPaysCash.com and 888-PAUL-PAYS.
Love the website Paul. Is it a D. Zehala pre-fab you bought? I been thinking of getting one.
I just bought a toll free for a new website we’re building for flips. 877-***-PAYS. Pretty cool. I use tollfreenumbers.com. I have a few toll free vanity numbers.
I wonder what those missing 3 letters are…LOL