Brandon Bateman of Bateman Collective has overseen more than $100 million in digital ad spend for the real estate investing community, and he comes on to hand investors the exact numbers they should track to know if their marketing is actually working. As David puts it, Brandon helps people make money while Simple CFO helps them keep it, the yin to the yang.

This is an action-packed, notes-out episode. Brandon breaks down why underfunding a marketing channel is the worst mistake you can make, what percentage of revenue different exit strategies should spend on marketing, and the four KPIs that matter far more than the ROI number everyone fixates on. If you want your marketing to produce leads and profit, grab a pen for this one.

Timeline Summary

[2:13] – The most common financial mistake: overextending on marketing you can't sustain

[3:00] – Why PPC needs six months of funding set aside and SEO needs 12 to 18

[4:04] – The worst outcome: spending three months on SEO and quitting before any return

[4:43] – PPC as a mid-term channel where leads come fast but the return takes time to dial in

[5:59] – How pay-per-lead differs: zero ramp-up, but no optimization once you buy

[8:10] – The credit-card-and-crossed-fingers client and why that's luck, not a strategy

[9:31] – What percentage of revenue to spend on marketing, and why it depends on exit strategy

[11:20] – Why flippers make money on the buy and the value add, and should run a wholesale company inside the flip

[12:47] – The survey numbers: flippers around 20%, wholesalers 30 to 40% of revenue on marketing

[14:06] – How to think about marketing spend on buy-and-hold rentals

[16:00] – The two extremes: over-concentrated in one channel versus afraid to spend

[17:38] – The client who spent the same and got the same, then realized he had to double spend to double revenue

[19:58] – The four KPIs that matter when comparing marketing channels

[20:36] – KPI one, ROI, and why it's overplayed as the only metric

[21:22] – KPI two, lead quality measured as leads per contract, and how it drives your whole overhead

[23:01] – KPI three, the scale and total volume a channel can produce

[23:39] – KPI four, cash conversion cycle, and the hard-money-lending analogy that explains it

[28:25] – The simplest first step for an investor who's never run paid ads

[30:33] – Why you should get bad at sales on cheap leads before spending on $400 PPC leads

5 Key Takeaways

1. Don't Underfund A Channel — The most common mistake is starting a channel you can't sustain. PPC needs about six months of budget set aside and SEO needs 12 to 18, or you'll quit before the return ever shows up.
2. Marketing Spend Depends On Exit Strategy — Flippers averaged around 20% of revenue on marketing, wholesalers 30 to 40%. Flippers make money on both the buy and the value add, so a good flip should contain a profitable wholesale business inside it.
3. Look Past ROI To Four KPIs — ROI matters but isn't the whole story. Compare channels on ROI, lead quality (leads per contract), total volume and scale, and cash conversion cycle to see which actually builds the better business.
4. Lead Quality Sets Your Overhead — Fewer leads per contract means fewer salespeople, managers, and support staff. One client runs seven figures solo on PPC purely because the lead quality supports it.
5. To Double Revenue, Double Spend — If you spend the same and do the same, don't expect growth. Scaling usually means lowering ROI a bit while increasing volume, which grows profit if the rest of the business can support it.

Links & Resources

• Bateman Collective — https://www.batemancollective.com
• Profit First for Real Estate Investing Free Workbooks — https://pfreiworkbook.com
• Simple CFO — https://simplecfo.com
• Profit First for Real Estate Investing by David Richter — https://profitfirstrei.com

Enjoyed This Episode?

If Brandon's four KPIs made you realize you've been judging your marketing on ROI alone, that's the upgrade worth acting on this week. Share this episode with an investor who's either blowing their budget or too scared to spend, and follow the show and leave a rating and review so more real estate investors can market smarter and keep more of what they make.