Real estate wholesaling has undergone considerable changes in the past year when it comes to marketing to motivated sellers.
New rules and regulations, most recently A2P 10DLC and the long-standing TCPA, while designed to protect consumers, have reshaped how you can initially connect with homeowners.
If you’ve been using the powerful 5X Omnichannel Marketing Playbook, a strategy pioneered by REI/kit, or any marketing methods that relied on direct consumer outreach, you’ve surely felt the impact of those regulations.
In particular, the 5X Omnichannel Marketing Playbook combines text messages, ringless voicemail, phone calls, email, and direct mail in calculated automation campaigns to maximize outreach.
This approach delivers impactful results for wholesalers looking to find potential sellers.
However, the new rules mean that a pivot in your telecommunications-based marketing is unavoidable.
While this presents challenges, with the right techniques, tools, and a new focus on consent, you can achieve success – and even gain a competitive edge.
In this article, we’ll walk you through:
- The core elements of the 5X Playbook
- How 5X marketing is threatened by A2P 10DLC
- The most effective methods to market to prospects today
- How to get to 5X marketing success despite 10DLC
Before going deeper into the regulations, let’s talk about the core elements of the 5X Omnichannel Playbook, and why it’s the gold standard in prospecting for seller leads.
The Core of the Omnichannel Playbook
Understanding the 5X Omnichannel approach begins with recognizing the daily dynamics of your potential clients.
Consider a typical day in the life of your prospects:
Your prospects are constantly switching between different activities throughout their day.
They might be at home sorting through their snail mail, at work scanning through emails, or using their mobile devices to send texts, make calls, or check voicemails.
This constant multitasking has led to a sizable decrease in attention spans—from 12 seconds in 2000 to just 8 seconds today.
Interestingly, that’s even less than the 9-second attention span of a goldfish.
This dramatic drop in attention span highlights a major challenge: you only have a few seconds to catch a prospect’s attention among a flood of other messages.
This makes it very important to know where your prospects spend their time and how you can effectively reach them to make sure your message stands out.
Choosing the right marketing channels is key
Each channel, whether it’s email, SMS, ringless voicemail (RVM), direct mail, or cold calling, has its own strengths:
Email is cost-effective and can reach large audiences, but it’s hard to break through the inbox
SMS and RVM get quick responses, but deliverability is not guaranteed due to telecom rules
Direct Mail is reliable in reaching its destination, but at a commensurate cost
Cold Calling can push deals forward faster, but take the greatest amount of time
You can read more about the strengths and weaknesses of each channel in-depth here:
Best Marketing Channel for Real Estate Wholesalers (Hint: There Isn’t Just One)
The main point here is that no one channel is perfect at everything, and sticking to a single channel will be limiting.
Using just one marketing channel can limit your success
Marketers are often told to stick to one popular channel and use it repeatedly, regardless of whether it’s still working well with their audience.
This approach fails to consider different aspects of marketing like:
-How many people you can effectively reach with that channel
-How well your messages are received
-How much it costs to send marketing through that channel
Not everyone on your prospect list may use your favorite marketing channel
For example, if you only use email to send marketing and half of your contacts don’t have email addresses, you miss the chance to reach half of your potential customers.
Especially now, focusing only on SMS might mean your messages never get delivered due to strict telecom rules.
Prospects also have their preferred ways of communicating
If your prospects keep seeing the same message in the same way, especially if it comes to them via a method they do not like, or one that is not as persuasive, they are likely to ignore it.
This means the effectiveness of that channel depends on your prospect’s perception of the marketing that comes in through that channel.
Considering the costs is important
Generally, a prospect needs to see your message about five times before they decide to act. The first few times they see your message, they’re just getting to know your brand.
This makes those early touches less valuable, and if they’re expensive, they’re not cost-effective.
Using a cheaper way like email to introduce your brand and save the more expensive tactics for later can help you manage your budget better and reach more valuable prospects who are closer to making a decision.
In short, today’s marketing requires a mix of channels to reach and engage your audience effectively.
By combining the unique benefits of each channel, you can ensure that your marketing messages not only reach your prospects but also resonate with them, increasing your chances of making a sale.
5X Omnichannel Automation as the Gold Standard for Real Estate Wholesaling Marketing
The 5X playbook is an effective omnichannel marketing approach that combines text messaging, ringless voicemail, cold calling, direct mail and email to reach potential motivated sellers.
An integrated campaign across these five channels multiplies your opportunities to connect with prospects, leading to more successful deals.
Specifically, the true genius of REI/kit’s 5X solution lies in built-in automation that takes the guesswork out of multi-channel follow-up.
The software not only provides all of these channels but also comes with pre-written campaign templates combining all of the channels.
These templates are expertly designed with AIDA (Attention, Interest, Desire, Action) marketing principles in mind, starting with a gentle nudge and ending with urgency.
Most importantly, thinking back to what you just read about the way that people engage, with these campaign sequences you maximize engagement and response rates by:
- Reaching out to prospects in the way they respond to best
- Switching up the delivery method to break through the noise
- Being consistent with your messaging.
Consistency is key, because as you learned earlier, multiple touch points will cut through a prospect’s average eight second attention span, which is already under assault by any number of other daily distractions.
Ultimately, 5-8 consistent contact points is the sweet spot for getting responses – that is, for B2B (business to business) brands.
The typical homeowner might require even more contact for such an emotional purchase or sale, but 5 is a good starting point.
The Full 5X Campaign
Going back to the AIDA model of Attention, Interest, Desire and Action, as you can see, in this omni-channel campaign that is already done for you in REI/kit and ready to activate, all communication methods – whether text messages, emails, direct mail, or ringless voicemails – have been stacked according to those marketing principles.
For days 1 through 5, capture the prospect’s attention with a blitz, asking them if they are interested in selling their property.
Then in days 6 through 10, capture their interest and pique their curiosity by talking about their neighbors, and asking them what they would do with the money.
Days 10 through 14 up the pressure and increase desire, by enticing them to get their offer.
Finally, days 15 to 17 ramp it up, applying both pressure and urgency with a time limited statement, to take action now.
Within each AIDA section, we vary the message to correspond with the appropriate psychological triggers.
We also vary the channels, using SMS and RVM to elicit immediate responses, and email and direct mail to reinforce previous messaging that the prospect received.
This calculated channel targeting, combined with the 5X system’s automation, offers a formidable advantage.
However, the 5X system is now up against a significant challenge.
The Threat to 5X: New Regulations
Recent rules and regulations regarding direct outreach with telecommunications completely upended the businesses of real estate wholesalers, particularly those using SMS.
Here’s a brief breakdown of the key restrictions and their impact on the 5X Playbook.
New A2P 10DLC Restrictions
A2P 10DLC regulations require stricter processes for sending SMS messages from specific phone number types.
These new regulations require marketers through telecommunications to do two things:
- Register their phone numbers
- Get explicit consent from their prospect before marketing to them
That is, if you plan to send texts through automated software and want them to reach the recipients rather than getting blocked, you need to register your business with an organization called The Campaign Registry.
While this may seem straightforward, the implications are serious.
Failing to register could lead to hefty fines—$10,000 per unauthorized text.
Moreover, sending the same message to multiple recipients who haven’t opted into your marketing can lead to your phone number being blacklisted.
The Campaign Registry enforces these rules strictly.
(For more details on these requirements, view our article: What is 10DLC and What Does It Mean for Real Estate Wholesalers?)
As of August 31st, 2023, with The Campaign Registry’s oversight in full effect, sending introductory texts to pre-qualify hundreds or even thousands of people at once became impossible.
In addition, the Telephone Consumer Protection Act (TCPA) had long prohibited unsolicited cold calls to residential phone lines. Recently questions have also been raised in the courts about the legality of using ringless voicemail, complicating this outreach method further.
How does A2P 10DLC and TCPA affect the 5X system?
In the 5X Omnichannel system, one of the initial campaign steps is a text message designed to identify the homeowner and gauge their interest; in essence the pre-qualification we just mentioned.
Most importantly, this introductory step:
- Reduced the number of uninterested or incorrect prospects at a fairly low cost, and
- Increased the number of interested prospects worth continuing with
Even if they didn’t respond to that first text, other methods such as the ringless voicemail on Day 5 might get a response.
Finally, a tried-and-true cold call via the CRM would reinforce everything you had already sent.
However, with these new regulations, a shocking three out of your five initial outreach channels have been profoundly restricted.
What does this mean for millions of real estate wholesaling businesses that use text messaging, ringless voicemail, and cold calls to talk to prospects?
It means that they now have cold and useless lists of contacts that they harvested or paid for, and can no longer market to.
Marketing to Prospects Post-10DLC
Naturally, this might make you feel backed into a corner, but there is really only one action to take: adapt.
What can you do when faced with a change this momentous?
First and above all, make sure that you keep marketing to sellers consistently using as many other marketing channels as possible.
This may seem obvious, but many wholesalers do not realize how hard it is to get the wheel turning again if they lay off the gas.
The reality is that if you stop marketing during this period of time, you’ll lose all of the momentum that you had with SMS and ringless voicemail.
Second, there is one strongly effective course of action within your reach that you can start implementing immediately to get your SMS marketing machine running again.
What is it? In a word, consent.
Getting Explicit Consent
Today, a prospect giving you their consent before using telecommunications to contact them is the only thing that matters.
“Consent” means that a prospect has agreed to be contacted—it’s as clear as them virtually raising their hand and saying, “Yes, contact me!”
Under 10DLC and TCPA regulations, however, it’s taken even further; consent must be “explicit.”
Explicit consent means there is no confusion about the details of the opt-in for the recipient regarding:
- What communications they are opting into from you
- What the name of your business is
- How you will market to them
- When you will market to them and how many times
- How to opt-out from your marketing at any time
For example, in a website the Contact Us form is required to have the following fields and an opt-in checkbox that they must physically check with their mouse or touchscreen.
The opt-in text clearly explains what they are opting into.
This level of clarity is necessary for building trust and exhibiting compliance.
That said, how do you get explicit consent to contact a prospect with telecommunications, without using telecommunications?
How do you actually obtain this explicit consent from potential sellers?
First, start looking into alternative marketing channels.
One Channel is Better Than None
As we just mentioned, not marketing is not an option.
Your first true option is Direct Mail.
Direct mail is the original and remains one of the most effective marketing methods that just work.
A bold and well-designed postcard with a clear call to action will always get delivered.
But, it’s expensive.
Here’s where it gets interesting.
By layering in the dynamic of email, you strengthen the return on your direct mail investment.
How?
Two Channels is Better Than One
Email’s cost-effectiveness and scalability make it an invaluable tool for lead nurturing.
With targeted messaging, compelling offers, and consistent follow-up, you can create an email pipeline that identifies the most motivated sellers.
Where before, you may have had to spend all of your marketing dollars on expensive direct mail, the potential additional touches from email marketing can significantly reduce the spend per touch, and ultimately the ROI of your campaigns.
The Final Piece: Integrated Website for Lead Capture
A website integrated with other software tools such as a CRM, plays a starring role in your new marketing approach.
An optimized website is key, not only to gather leads but to provide a clear path for them to opt-in to your communications.
This website should also provide a platform for building trust and establishing your expertise. Offer valuable content, testimonials from satisfied sellers, and clear calls to action that encourage visitors to opt-in for your email list or contact you directly.
Combining the two available channels with a tightly integrated website, you can imagine this:
A distressed homeowner receives your postcard and visits your website to learn more.
A few days later, they receive a personalized email with a compelling offer, further reinforcing your message.
This combination of a physical touchpoint, increased branding via the website, and thoughtful email nurturing highly increases the likelihood of a positive response.
Managing this New Approach
Of course, there are challenges associated with this new approach.
Without a unified system managing multiple channels and tracking consent, your marketing efforts can become fragmented and inefficient.
Juggling separate platforms for email, direct mail, and website management, not to mention making phone calls, SMS, and ringless voicemail can be time-consuming and lead to confusion for you and your team.
REI/kit as Your Solution
That’s where REI/kit steps in. It’s more than just software; it’s the all-in-one system that empowers you to recapture the power of omnichannel marketing in a compliant and effective way.
REI/kit offers a comprehensive suite of integrated tools designed to streamline your marketing efforts under one roof. These tools include: but
All the Channels You Need: Manage direct mail postcards, email, SMS (with consent), and ringless voicemail automation.
Integrated Opt-in Website: A custom-branded website with streamlined integrations into your overall marketing, providing prospects a clear path to opt-in to your communications.
Virtual Phone Numbers: Create dedicated virtual phone numbers to maintain your privacy, and to track calls generated from your various marketing campaigns.
Regulatory Compliance Hub: No need to go outside of the software to register your phone number for A2P 10DLC. Submit documentation and track the status of your application to The Campaign Registry, with white-glove assistance.
Consent Tracking: Manage consent in the CRM and with the website’s automatic consent capture.
All of these components are necessary to successfully restart your marketing via SMS, and with REI/kit, they are all managed in one system.
Obtaining Consent Made Simple
Remember earlier, reading about how to integrate the direct mail and email channels with an SEO-optimized website? REI/kit makes that incredibly simple, too, with the Consent Capture System.
Introducing the Consent Capture System (CCS)
The innovative Consent Capture System is a carefully designed automation sequence of three emails and three direct mail postcards aimed at securing a prospect’s consent to receive communications like text and ringless voicemail.
Within the postcards and emails are three immediate touchpoints for homeowners to contact you: a phone number to call, a website to visit, and a unique code to text.
This multi-pronged approach increases the likelihood of gaining consent, allowing you to unlock the true potential of all five of REI/kit’s suite of marketing channels.
By combining email’s flexibility and the appeal of postcards you can touch, you create multiple touchpoints designed to encourage homeowners to proactively opt-in to your communications.
Your Unique Advantage
You might think that effective solutions are common, especially with the new A2P 10DLC rules making it seem like there are quite a few automated options for obtaining consent.
However, that’s not quite accurate.
While many real estate wholesaling software providers offer some marketing tools, typically through just one channel, none match what REI/kit offers.
REI/kit stands out with its unique dedicated Consent Capture solution and its fully integrated software that manages five different automation channels.
This gives you a substantial edge in the market.
Is there anything good that came out of A2P 10DLC regulations?
The Silver Lining
Regulations like A2P 10DLC and TCPA are major hurdles, but there are silver linings. For one thing, the recent decline in spam texts and intrusive robocalls works in your favor, because the playing field is shrinking.
Many wholesalers, caught off-guard by the regulatory rules, cut back on their marketing efforts, leaving fewer competitors vying for the same leads.
This gives you a golden opportunity to dominate your market by utilizing an integrated platform like REI/kit.
Long-Term Wins: Building a Clean, Engaged List
Building a high-value prospect list should always be your goal, but in this new era of 10DLC oversight, it’s especially important.
Your list will become a compounding asset as it grows in size and engagement level.
Picture a database filled with potential sellers who have:
- Opted-in to your email list with an interest in your services.
- Provided consent for SMS, ringless voicemail, and phone call follow-ups.
- Interacted with your direct mail pieces, further indicating their motivation.
This level of engagement measurably increases the potential for more deal conversions.
You’re carefully cultivating a pool of leads who have demonstrated genuine interest in your services.
The more marketing for your business is constantly circling and echoing within your sellers’ communications, the bigger the likelihood that someone will reach out to you.
That’s why the 5X system is so vital for your business.
When they like you, they trust you, and they will sell to you. It’s just a matter of timing.
But you have to get in front of them to make that happen.
