"Radio, by far, is my biggest source of advertising," says Mr. Taylor. "We have sold more homes and made more money since I started advertising on the radio than I have at any other time before then."
Mr. Taylor had been a very successful real estate agent prior to advertising on Las Vegas radio stations. He established O48 Realty in 2003 and quickly expanded to 116 agents.
"In 2008, I lost everything," says Mr. Taylor. "When the real estate crash happened, I wasn't prepared. The company's expenses were far greater than what little money was coming in."
"I needed a home run to turn the business around. A base hit would not do," says Mr. Taylor, who is very fond of sports analogies. "Advertising on Las Vegas radio was a home run."
In 2010, Mr. Taylor's business consisted primarily of short-sales This is when a home is sold for less than the remaining amount of a mortgage.
"Sellers mistakenly thought they needed an attorney for this type of transaction and were paying out thousands of dollars for fees," says Mr. Taylor. "So, I put a full-time attorney on my staff and started offering free legal representation with every short-sale. Nobody ever did that before."
To let people know about this offer of a free attorney, a friend advised Mr. Taylor to invest in radio advertising on two Las Vegas stations.
Mr. Taylor's first radio commercial included the first public references to his 'The Real Estate Guy' moniker and his now famous jingle.
The Real Estate Guy Commits To Advertising On Las Vegas Radio
After the first month of radio advertising, Mr. Taylor did not see any results. "I knew it would take time to work," he says. "So, I committed to myself to stick with it for a year."
During the second month, Mr. Taylor received his first phone call from his commercial. The third month a few more came in. "During the fourth month," he says, "we closed a sale. Then the radio advertising really gained momentum."
"When I saw how successful how our radio commercial was doing, I added a third station, then a fourth, then a fifth, and so on."
"After our first year on the radio," says Mr. Taylor, "we had gone from selling 50 homes a year to 300." By any measure, a home run."
Today, out of 16,000 agents in the Las Vegas area, The Real Estate guy ranks sixth with home sales exceeding $80,000,000 per year.
Radio Advertising Generates Strong ROI For The Real Estate Guy
Mr. Taylor continues to advertise on Las Vegas radio stations. "We are on 24 different radio stations, 52 weeks every year. "I know that every $1.00 I invest in radio advertising will pay back $5.00 in sales," he says.
Mr. Taylor's return-on-investment is typical of radio advertising campaigns.
Over the past few years, Nielsen has conducted more than 20 studies to determine how much ROI a business owner could expect when advertising on radio. In every case, radio’s ROI was, in the words of Advertising Age, “eye-popping.”
The most recent ROI study released by Nielsen is no exception. According to Westwood One, the company that commissioned this latest study, a radio campaign for a men’s personal-care brand produced $11.96 in sales-lift for every $1.00 invested in radio advertising.
Overall, according to Nielsen, among all of the studies conducted, radio ads produced a very impressive 10x ROI.
Radio Advertising Return On Investment By Product Category
Paid Programming On Las Vegas Radio Creates Sales
In addition to the thousands of radio commercials Mr. Taylor purchases every year, he also pays for and hosts a two-hour radio talk show every Saturday. "I generate almost 20% of my sales from this show," he says.
Mr. Taylor believes any Las Vegas small businesses and entrepreneurs can benefit from advertising on Las Vegas radio stations. He offers the following advice base on his success:
- Use the 30/30/30/10 rule. For every $100 you sell, set aside 30% for taxes. Pay yourself 30%. Invest 30% in advertising. The last 10% is for 'mamma'.
- Be patient. Radio won't work in 30, 60, or 90 days. You need to stick with it. People need to hear your message repeatedly before they will trust you enough to call. New customers tell me all the time that they've heard my commercials for years, and they feel like they know me.
- Be different. Make sure your commercials have a hook. Something that sets you apart from your competition
- Never stop advertising. If you do, a competitor will be happy to take. your place.