You're about to discover why attending those free real estate investing seminars that you see advertised are for Suckers. I'll prove why free real estate seminars are a waste of your time and because of the "noisy" information they share, can even be counter-productive to your quest for learning how to be a successful real estate investor. The goal of this message is NOT to bash all those companies out there that advertise and administer free real estate seminars. This lesson has nothing to do with any particular company. Instead, it shows why the seminar model itself is old and antiquated. Ultimately, my hope in sharing this message is to teach new investors and especially those who are curious about investing, how best to choose what information to consume as well as how to consume it.
Why Free Real Estate Seminars are for Suckers
Why are free real estate seminars for suckers? Not only am I going to break down the anatomy to prove to you why it's a waste of your time and potentially destructive to your career but also, I'm hopefully going to empower you to be able to make better decisions on how you consume information so you can become a more successful real estate investor much more efficiently.
Look, I'm not trying to bash my competition if you think that is what this is, because frankly, they're not my competition. I'm a real estate mentor but I don't have much capacity, it's just me and a small team. These organizations are enormous. They put hundreds of thousands of people into their funnel in a year. . You can absolutely be more efficient with your time. It starts by not attending these free seminars.
These seminars must put out advertisements in order for people to show up otherwise no one would even know they exist. Typically, their advertisements have a big personality. They get somebody from a reality television show or that thing, big personality in the advertisements. Here's an important statistic for you. On average, depending on the size of the market, they will spend somewhere between $100,000 and $300,000 in advertising for you to come to a free seminar. True story. That's not per a year, that per a perspective market, per New York city, per Miami, per Los Angeles. These advertisements are trying to get people to come to these free seminars. Each seminar has a different name and angle, but I am not going to get into all of that because they all follow the same free seminar model.
How They Make Their Money
If the seminar is free, then how are they making money? They make money by selling you something. Whether it is a course or an additional seminar, they are going to try to get you to buy something to make sure that they are not losing money. To break even on $200,00 or $300,000 in advertising, let alone the cost of the hotel, they need to sell whatever it is they are offering. That means that everything that they say is going to be toward selling, not necessarily educating.
If you are looking to purely learn from the seminars with no intention of buying, free seminars are still a waste of time. They're not necessarily going to teach you anything, because the majority of what they're going to share is what I call noise. Noise is not truth. It's maybe a little bit of truth but stretched in a biased way to sell, sell, sell. They're not going to tell you the most negative things about the business because that may not help you to buy or if they do say something negative, it was all calculated.
This is a masterfold machine they've put together for many of these companies. Everything that they say and do is completely scripted in order to sell whatever they are intending to sell you. The speakers are in fact, some of the greatest sales people you will ever meet.
They are not Real Estate Investors
These speakers are not real investors. Some of them may say they are, but spending 5-6 days a week in a hotel or on the road speaking, means they are not busy real estate investing. I am not in the seminar business at all because it is not efficient. I wouldn't be able to balance my time because I invest locally and mentor others. If I was out traveling. living out of a suitcase, then I would not have time to invest in real estate. Plus, that is not true freedom, that is prison. I want to spend time with family and enjoying my hobbies.
If the speakers are not real estate investors, they're sales people, and in some cases they're not even good sales people. I remember I was reading an article where this particular organization had a speaker who worked at Buffalo Wild Wings when he wasn't on the road speaking. He wasn't necessarily a real estate investor.If the free seminar is geared towards sell, sell, sell, the speakers are fine-tuned sales people. What that means is you're getting noisy information or you're getting information that could be completely wrong but it's helpful for them to sell. Everything about the model, even the temperature in the room, the way the seats are designed, is geared around you buying. If you show up, that's a big step. They have all these psychological things they're doing to you so that you will buy, buy, buy.
Why They Do It
First of all, they do it because people ask for it. People ask me all the time, "Phil, when are you coming to New York or Texas or California or Ohio, Michigan? When are you coming next, Phil? I want to come to your seminar." My answer is , "I don't do seminars. I'm not coming. I'll probably be surfing or fishing or investing in my own deals or mentoring one of my students. I'm not traveling up there.
They're doing it because people want it and they're also doing it because it's profitable. This business model has made a lot of money for a lot of companies over a long period of time. One particular company in the news a little while ago, 2002 to 2012, earned $500 million gross revenue with just one of those seminar companies. This is all public record that I'm sharing with you. If you dug deep enough, you can confirm this information.
What should you do instead?
You can learn a lot from the internet. I understand that there's a lot of noise in the internet as well but you can get to the signal. Signal would be something like certain videos on Youtube. I am a bit biased, but my videos have been proven to be the best in this industry.
A 30 year real estate investing veteran, who was actually a competitor of mine back in Nashville, sent me an email recently, that he recommended his son watch every one of my videos. He said, "You can always teach an old dog new tricks. " I thought that was such a great compliment.
Whether it's Youtube videos where you can look at the views, thumbs up, and the comments or Amazon books, where you can get Kindle books, and you look at the reviews. You have the ability now to choose what information you want to consume and when. Think about the free seminar model, you have to get in your car, drive over to a hotel, then they tell you what you need to hear, when you need to hear it, so you have no control over the consumption of the information. It's like watching the evening news as opposed to reading a newspaper. The great thing about a newspaper is that you can skim the pages and pick out the headlines of the articles you actually want to read. Whereas in the evening news, they give you all the negative murder stories first and at the very end, they tell the story about the dog that was saved from the breaking ice or whatever heartwarming story is at the end.
You can choose what information to absorb in your own time, while you're in bed watching your iPhone. That's why I do what I do when I deliver my information. It's because the model is so much better than this old, antiquated free seminar model.
This could be a game-changer for you if you've been a "seminar junkie", that goes from seminar to seminar. You can do your friends and family a favor if they're interested in going just say, "Hey, as opposed to going to some seminars for free, how about you go online and read the right free books, watch the right free videos, and consume the right information. So many times people have told me that watching my Youtube videos, taught them so much more than when they went to a seminar that they actually paid for.
The big personalities used to promote these free real estate seminars are usually not even involved in the program. They just do what's called a licensing agreement. They license their name. They may go attend a free seminar but they literally just put their name up to receive a small percentage of the over-all earnings.
If we're talking about a local attorney who is putting on a little workshop on how to do a 10-31 exchange and they're going to charge you $20 or something, that's completely different. That's fantastic. I'm talking about these free real estate seminars that you see coming in town. You know which ones I'm talking about.