Podcast Summary: The Science of Flipping Episode: Why 90% of Your Marketing Budget Feels Wasted (And Why That’s Okay) Host: Justin Colby, Bleav Release Date: May 9, 2025

Introduction

In this insightful solo episode of The Science of Flipping, host Justin Colby delves deep into the often misunderstood realm of marketing within real estate investing. Drawing from 18 years of personal experience and millions invested in various marketing strategies, Justin aims to shift the perception of marketing from a mere cost to a pivotal investment that can significantly influence a real estate investor’s success.

Marketing: Cost vs. Investment

Justin begins by addressing a common misconception in the real estate investing community: viewing marketing as an expense rather than an investment. He emphasizes the importance of understanding marketing’s role in generating revenue and building a sustainable business.

Notable Quote:

“[...] most people in our space of real estate investing, they think of marketing as a cost and not an investment.”
(00:58)

Exploring Marketing Verticals

The discussion transitions into the myriad of marketing channels available to real estate investors, such as cold calling, TV ads, direct mail, PPC (Pay-Per-Click), PPL (Pay-Per-Lead), email marketing, and more. Justin asserts that no single method is inherently bad; rather, the effectiveness depends on proper execution and aligning the strategy with business goals.

He highlights that each vertical serves different purposes, whether it’s lead generation or brand building, and underscores the importance of setting realistic expectations for each channel.

Key Points:

• Cold Calling & Door Knocking: Effective for direct lead generation but offer minimal branding benefits.
• TV Ads & PPC: Dual-purpose channels that can both generate leads and enhance brand recognition.
• Direct Mail & PPL: Primarily focused on lead acquisition without a significant impact on brand awareness.

Branding vs. Lead Generation

A significant portion of the episode is dedicated to distinguishing between branding and direct lead generation. Justin explains that while some marketing efforts are aimed solely at acquiring leads, others also contribute to building a recognizable brand that can attract clients over the long term.

Notable Quote:

“Marketing is really imperative. It is different than branding though.”
(14:19)

He uses his own company, US National Home Buyers, as an example of straightforward branding that clearly communicates the business’s purpose, enhancing recognition and trust among potential clients.

Return on Ad Spend (ROAS) and Realistic Expectations

Justin introduces the concept of Return on Ad Spend (ROAS), advocating for a minimum target of 3x ROAS to deem a marketing campaign successful. He candidly discusses the reality that a significant portion of marketing budgets—up to 90%—might not directly result in immediate deals. However, this “wasted” spend is a natural part of the marketing process, providing necessary exposure and opportunities for future deals.

Notable Quote:

“If I spend $100,000 and my cost to get the deal is $5,000, my hope is I can get 20 deals. [...] 95% of that hundred grand at that moment is wasted.”
(14:19)

Justin stresses the importance of having the patience and financial runway to sustain marketing efforts over at least six months to accurately gauge their effectiveness and achieve desired ROAS.

Consistency and Marketing Stamina

Consistency emerges as a critical theme. Justin advises against abandoning marketing efforts prematurely, even when immediate results are not evident. He likens marketing to a marathon rather than a sprint, where sustained effort over time builds brand recognition and leads to profitability.

Notable Quote:

“You have to have marketing stamina. [...] do not give up before you give yourself enough Runway to measure your results.”
(32:49)

Practical Advice for Marketers

Justin offers actionable strategies tailored to different budget sizes:

• Minimal Budget:

  • Cold Calling & Agent Outreach: Cost-effective methods to build relationships and generate leads without significant financial investment.
  • Facebook Ads: Provide a blend of branding and lead generation, suitable for reaching a broader audience.

• Larger Budget:

  • TV Ads & PPC: Invest in channels that not only acquire leads but also enhance brand visibility and recognition.

He shares personal anecdotes, such as his experience with TV ads in Alabama, where a substantial marketing investment led to a profitable deal despite the majority of the spend not resulting in immediate leads.

Notable Quote:

“I was doing TV ads in Alabama [...] we spent 30 grand to make 40 grand.”
(21:41)

Leveraging Branding for Long-Term Success

Justin underscores the long-term benefits of branding. A well-established brand increases credibility, authority, and the likelihood that clients will seek out your services even without direct interaction. He highlights how consistent branding efforts, such as engaging podcasts, can enhance visibility and attract more business over time.

Notable Quote:

“The bigger my brand gets, the more money I make.”
(21:41)

Conclusion: Strategic Allocation and Patience

In wrapping up, Justin reiterates the necessity of strategic budget allocation based on marketing goals—whether it’s immediate lead generation or long-term brand building. He encourages real estate investors to maintain realistic expectations, remain patient, and provide sufficient runway for their marketing strategies to mature and yield results.

Final Thoughts:

• Assess Your Goals: Determine whether your primary objective is lead generation, brand building, or a combination of both.
• Allocate Budget Accordingly: Invest in marketing channels that align with your goals and budget.
• Maintain Consistency: Commit to your marketing strategy for a minimum of six months to accurately assess its effectiveness.
• Adapt and Optimize: Continuously evaluate your strategies, optimize based on performance, and remain flexible to adjust as needed.

Closing Quote:

“Understand what you're looking to achieve. Figure out how much marketing budget you have and attack it. And lastly, give yourself enough Runway to measure the results.”
(32:49)

Justin urges listeners to share the episode with peers who could benefit from a more strategic approach to marketing in real estate investing, emphasizing the value of informed and patient investment in marketing efforts.

This episode serves as a comprehensive guide for real estate investors aiming to optimize their marketing strategies, highlighting the balance between immediate lead generation and long-term brand building, all while setting realistic expectations for ROI and maintaining persistence in their marketing endeavors.