This past week I had a great opportunity to meet with, and listen to some of the big brains of internet lead generation. 

 Let's paint a profile of the internet consumer.  Joey Cyberspace uses the internet for most of his purchases.  Joey decides Monday night is going to be Pizza night at the Cyberspace family home.  How does he buy his pizza?  He goes to his lap top or smart phone and places his order on-line.  Thirty to forty five minutes later the door bell rings and the Cyberspace Family is enjoying a piping hot pizza with topping so fresh it seems like the peppers were picked while the pie was being delivered.

 That night while doing the laundry Joey notices the tighty whiteys aren't aging very well, and figures it's time to give boxers a shot.  So Joey logs on to the trusty lap top and starts looking for Boxers.  He thinks to himself Awesome good ole JC Penny is having a sale.  He promptly orders the familiar 3 pack, and before check out a pop up comes up and says, do you want to be notified of sales and other company news?  Joey says sure and files out the form.  Three days later Joey's mother would be proud, if he gets in a wreck the EMT's will know he is wearing brand new clean underwear.

 Now you are thinking, what the heck does Pizza & Underwear have to do with buying a home?  Pay attention to the two transactions.  Both simple in nature, both at some time during the transaction required some sort of registration, the Pizza Shop needed to know where to send the pizza, and JCP asked him to sign up to receive additional information.  Both transactions where accomplished with no intrusive phone calls.  No contact with the merchant.  Joey accomplished his goals, first having Pizza Night, and second making his mother proud that he is wearing clean undies.

 Can anything be learned about the internet consumer from the two examples mentioned above?  Maybe.  Internet consumers make a consciences decision not to call a real estate office or agent, that is an unarguable fact.  However most agents and a lot of office policies, would jump on the phone and give Joey a call.  Joey has indirectly said "Don't Call Me Turbo!  I will let you know when I want to speak with you."  Internet lead generation is no longer cutting edge.   Years of data now exists and we now better understand the internet consumer.  Internet consumers will give us clues as to how they want to communicate with you. 

 Observation is the key to understanding the internet buyer.  Drip campaigns, the let me show you homes call within 15 minutes of the registration, and emailing more properties unsolicited are turn offs and only add to the image problem associated with the industry.  As we prepare for opening day we need to take a hitters approach to the internet consumer.  Observe, get comfortable in the box, be patient, the right pitch will come, and when it does, that is when we swing. 

 Until then Relax Turbo!

The story book romance, climaxes in a fairy tale wedding.  The happy couple purchases their dream to begin their life together.  Slowly at first the realities of life begin to tarnish the blissful future Sally & Joey Newlywed envisioned.  What once looked like happily ever after has become the war of the Roses.

 A slowing economy, a job loss, and a toxic home life have led to the nuclear option…The Divorce.  Attorneys on both sides of the table begin the process.  Marital assets are total and values assigned.  The debate continues.  The biggest asset Sally & Joey’s dream house is the most fiercely debate assets.  Did I say asset?  Is it an asset?

 As a realtor what advice do you give your clients?  The American Bar Association, The California Association of Realtors, The Oregon Association of Realtors, and The Tennessee Association of Realtors have all recognized that “in Divorce too late comes way too early”.

 Divorce this House and the Real Estate Collaborative Specialist – Divorce designation are divorce problem prevention experts.  To learn more about the RCS-D designation and Divorce this House, join us tomorrow for a course preview via webinar.  Capacity is limited so register now at https://www2.gotomeeting.com/register/165201642.

 Kelly Lise Murray and Wendy Waselle of Divorce this House will join Tami Bonnell, President of Exit Realty and Carol Johnson, President of the Recruiting Networking on Monday April 12, 2010 at 3:00 PM Central Time to discuss how the RCS-D Designation can supplement your recruiting efforts.  To join us on Monday April 12, 2010 please click here.

What are ideas worth?

Some argue that ideas are the key ingredient to success, ideas change the world as we know it, ideas change the status quo, and ideas inspire success.  I would argue that ideas in and of them self inspire great conversation but the conversation is only theoretical.  Ideas without action are the "we could of", "we should of" and "if only" conversations we have with our "Lizard Brain".

The 99 Percent is the think tank of Behance. Behance is a company that organizes the creative world to make ideas happen.  Check it out; I think you will be glad you did.

One of the goals of any professional should be to achieve a state of unconscious competence, meaning that they no longer need to think about their actions to achieve the desired results.  Much as a professional quarterback can simply find the open receiver without thinking about it, or the professional basketball player can sink the jump shot with no thought.

That same level of competence can be reached in any profession.  The carpenter knows where to put the nail without thought, the keyboard player knows where the keys on the piano are without thought, and the great cop knows who to talk to get to the bottom of an investigation. 

A novice may be unconsciously incompetent.  They are unaware of what they don't know maybe even to the point of not even knowing what questions to ask to find the knowledge.  Eventually they will begin to understand what they don't know, or become conscious of their lack of ability.  If you follow the theory most professionals will become skilled enough in their given trade to become a Conscious Competent and the truly great will achieve the status of Unconscious Competence.

This leads me to my point, even the unconscious incompetent knows that the point of listing homes,, and in fact the business of Residential Real Estate Brokerage is to sell houses.  This morning I had the pleasure of meeting a new client with the purpose of showing her some condos in Chicago's Streeterville Neighborhood.  On Monday of this week I called the listing agents or their designee and scheduled visits to 4 units, 3 in one building and 1 across the street.  My client informed me she would be taking the train to the city and would like to meet me at the building.  The first 2 appointments went off without a hitch.  Both units beautifully decorated with stunning views of the Chicago Skyline. 

Visit 3 was 10 floors down in the same building.  On Monday the listing agent told me to meet her at the unit.  Knock, Knock, no answer.  Knock, Knock no answer.  There must have been a mix up, maybe I was supposed to meet her in the lobby, no biggie, and a quick elevator ride and back to the lobby.  No agent.  Thanks to modern technology, I have mystery agent's number in my calendar.  A quick call and no answer, again no biggie I leave a message and suggest to my client the agent should call back in a few minutes.  No call, no agent, and no more time to wait.  The disgust on my client's face was hard to disguise.

A few words of apology and we head across the street.  The bright sunshine of the crisp Chicago morning helped ease the disappointment.  This agent indicated that I could gain access to this unit by way of a lock box.  Not my preferred method of trying to sell a client's property but it is a well accepted industry practice.  The door man quickly gives me access to the "lock box room" and I go to my notes and enter the combination on the appropriate lock box.  Bingo the front door springs open, and much to my surprise, no key.  Must be a mistake, I ask the doorman if there are any additional notes or showing instructions for the unit.  In something that sounded similar to English he said no.  I do what seems reasonable and place a call to the agent.  This agent is also unavailable, however someone from his office indicates that they have been aware of the missing key since Monday.  SINCE Monday I ask?  Yes since Monday I am told.  I asked the lady if she knew what day it was today, she said it is Wednesday.  I then asked if she had me on the showing calendar and she said yes from 10:45 - 11:00.  I then asked if she had ever heard of Alexander Graham Bell, she responds no.  I explain his invention and how it has greatly increased communication.

What is it with Realtors?  Four appointments, effectively 2 no shows, for the Love of God and everything Holy this isn't rocket science!  Like Woody Allen once said 90% of life is showing up.  You would think a slow market would lead people to gain some form of competence.  Like a wise man once told me" you just can't fix stupid!

Two business days into the New Year, all the reflections of the past are now fading, all the opportunity of the future is glowing, and the Prima Donna is only warming up, now what?

The experience of history is the greatest education one can have.  Recent history has provided Real Estate Brokerages with enough education that many might have earned a Master's Degree.  The lesson began with an understanding the numbers without understanding mean nothing.  As real estate markets across the country began to boom, Brokerages experienced GCI increases of in unheard of percentages.  These GCI increases continued even as the under lying fundamental driver of real estate began to slow.  The number of transactions was slowing even as gross commission dollars was increasing.  The smart owners saw this trend and began adjusting.  The average and below average companies only looked at the top line.  History lesson number 1 Transactions as well as price matter.  It is easier to control the number of transactions than it is to control the price per transaction.

Before the melt down, companies experienced record profit levels.  Brokerages spent money on the latest and greatest gadgets; the latest must have technology, and began paying sale associates commissions that made little sense for the long term health of the company.  Brokerages expanded beyond any reasonable measure.  Agents with little experience opened offices faster than a dragster racing down the track.  Sellers viewed their property as an ATM, with no respect to business cycles.  Lenders encouraged the practice with easy credit.  However the fundamentals were unchanged.  Business is a cycle with peaks and valleys.  History lesson number 2 Business is and always will be a cyclical environment with highs and lows.  A business needs to be managed in the present while preparing for the future.

When the market began to declining as fast or faster than the growth, many though it only a hiccup.  Certainly this would downturn would quickly turn around, transactions would pick up as there was pent up demand.  Simple laws of supply and demand tell us this isn't the cause.  Decreasing demand and slowing a transaction number influences price.  The GCI increases evaporated, transactions in a number of markets disappeared and brokerages were left holding the bag of excess expenses, high labor costs, and empty offices as agent left the business in droves.  History lesson number 3, if it seems too good to be true it usually is too good to be true.

That leads us to the future.  The Prima Donna or fat lady has already sung for a lot of brokerage operations.  For a number of others she is certainly clearing her throat and warming up.  For the lucky that are still in business the future is yours.  What are you going to do about?  I have heard many say that 2010 is going to be the year.  This year is filled with a fragile optimism that is still shining bright.  Much has been said about the brokerage of the future and the agent of the future.  However 2010 is where the rubber meets the road.  Repeating the same behavior of the past and hoping this year is the year is not a strategy.  Real Estate Brokerage is at the breaking point it is hemorrhaging and under attack from multiple angles.  Traditional training methods are outdated, traditional marketing doesn't work, traditional brokerage must be re-invented. 

The past has created a very bright future for those that are prepared and have learned.  A friend of mine once told me that the best way to look at the mistakes we have made in the past is to consider these mistakes tuition.  Just as a college charges its student tuition history and its lessons charge a steep price.  Most of the surviving brokerages have paid for and earned an Ivy League education, now the only question that remains it what are you going to do with it.  Don't let the Prima Donna begin singing your Swan Song.

Yesterday, I was talking with a friend of mine about where to budget marketing dollars for 2010.  The topic of web sites came up, and the purpose of an agent web site was discussed. 

Andrea makes what I think is a very good argument that agent web site have become or are quickly becoming dinosaurs.  In her blog she states "the lines between the blog and web site have become blurry", I would argue that the lines have merged.  My thesis is that any document with a URL is a web site and can accomplish the desired result.

In my opinion an agent web site is to engage, capture, and eventually do business with a consumer.  This can be accomplished in a number of ways.  A blog, a twitter account, a facebook page can all accomplish this task.  The fact of the matter is a web presence is part of a sales funnel.  The key to any sales process is to identify and understand where the leaks or stress points are in the process.  I would argue that in the real estate sales process the leaks are in the engage and capture portion of the process.  The point between capture and close has too many outside influences, credit worthiness, appraisal issues, inspection issues, the list is endless.  So with this in mind it is that I originally began to think that traditional agent web site might in fact not be the best use of time and money.

While reading the latest NAR Survey of Home Buyers and Sellers I wasn't surprised when most surveyed indicated they began their home search on the internet.  However as I continued reading the survey, buried toward the end was a fact that is often over looked the vast majority of buyers and sellers choose their agent based on 2 things:

1)      Referral.  They choose an agent that is a friend, relative, or neighbor.

2)      They have done business with their agent before.

If you like me, think the survey is valid, then you must keep this in mind when developing your web strategy and spending your marketing dollars.  Social Media is a very good way to keep in touch with and market to your sphere of influence.  Email is another great way to do this.  Rezora, is an email marketing program that was designed by and for the real estate industry.  It gives agents and brokerages the ability to communicate with a sphere of influence, monitor the communication, and understand what consumer behavior is generated by the communication.  Check out the demo at www.rezora.com.  Once you see what Rezora can accomplish I am confident you will find it a great way to communicate with your clients.  Drop me an email if you would like more info and to discuss available pricing options.

2010 promises to be a year of continued change.  Seth Godin summed it up best in his blog today, "what will you have to show for what you're doing right now.  If the answer is not much perhaps you should consider a new plan".  You can't get to second base unless you leave the safety of first base; success involves risk, and trying new things.  Resolve to try something new, it is not too late to ReInvent your business, your web site, or marketing efforts.

Here's to the New Year!

The Battlefields of Flanders gave new meaning to the word war.  Thousands of German, French and British soldiers engaged in trench warfare.  Man's newest killing machine, the machine gun, turning the trenches into a slaughter house of human flesh.  Cold, wet, and, hungry both sides committed to their cause, fighting for what they saw was a justice.

Suddenly tiny lights began to flicker; the French and British troops struggled to figure out the source of the light.  Was it a new weapon, some unknown force about to be unleashed?  Was the living nightmare about to become a living hell?

From the short distance that separated the warring factions a melody could be heard.  What was that melody?  The flickering lights, a strange melody, and the guns lay silent.  Was it "O Tannenbaum"?  To the amazement of the French and British Troops "Fritz" was celebrating Christmas.  The tiny lights proved to be candles decorating little Christmas Trees just outside the trenches.   Soon the melody was replaced with "Merry Christmas Tommy" in a heavy German accent. 

Not to be outdone by the Germans the Brits start singing "The First Noel".  When the Brits broke into "O Come All Ye Faithful" the Germans responded in-kind with "Adeste Fideles", the same hymn in Latin.

Soon both sides began meeting in the no man's land that separated the heavily fortified trenches.  Exchanging well wishes, food, and tobacco, foes celebrated Christmas together.  Playing cards, toasting the truce, and even playing soccer both sides took a step back to acknowledge the holy night. 

Two mortal enemies committed to each other's destruction, lay down their weapons, if only briefly to celebrate the Joy that is Christmas.  It was the Eve of Christmas 1914, on the Western Front in Northern France and Belgium.

Here's hoping the Christmas Miracle fills you and yours with Peace and Joy.  Merry Christmas to all and to all a Good Night!

While watching my favorite Christmas Show, "The Grinch", I was reflecting on 2009.  The year that was, or soon to be was, was indeed one in which we all came face to face with economic terms that we all thought were a thing of the past.

Continued deflation in the housing market, double digit unemployment, a credit crunch, and bank failures all quickly come to mind. 

After the hustle and bustle of the Holiday's pass and the New Year's resolution are made we will be faced with all the opportunity that every New Year promises.  Like the Grinch who's heart grew to the size of 10 Grinch's I was reminded of modern day parable of the big and small rocks.  Click here for the best video of the parable that I have seen.

As we prepare to toast the New Year and make plans to make 2010 a banner year remembering the Big Rocks will help us all put things in prospective.  A couple of years ago I was speaking with a Consultant/Trainer who relayed the following story:

While meeting with a Group of Automotive Dealer's the following question was posed, "What are the most important things in your life?"  The answers were typical, with faith and family topping the list.  He then posed a second question, "Do your senior managers and leadership team know the answers to the first question?"  Silence fell upon the participants.  Lastly Mike asked, "Does your organizational culture reflect your highest priority, the answer to question 1.  As the real estate industry struggles to be profitable, thinking about these questions and the answers may go a long way to making sure we are putting the big rocks in first. 

Understanding is the key to success.  Understanding what we want to accomplish, understanding what those around us want to accomplish, and understanding what our customers and/or clients want to accomplish.  Our industry is suffering from an extreme lack of understanding.  Broker/Owners don't understand why managers aren't recruiting more agents, agents don't understand why buyer won't buy or why seller's have ridiculous expectations of a home's value, and clients don't understand why an agent can't get the pennies on the dollar that the late night infomercials promise are right in front of everybody.

To understand is to lead.  And leadership is what is going to make 2010 a different year than the previous, or if you are one of the lucky few, leadership is what is going to continue to make your company successful.  There has been much talk about the brokerage of the future.  The brokerage of the future is going to be made up of leaders who understand.  Leaders who understand that given the proper tools and training managers will attract the top talent.  Leaders that understand agents and sales associates need more than a handful scripts to negotiate the best deals for their clients, and leaders who understand that an educated client or consumer will have realistic expectations.

Knowing what we know, and don't know is the first step.  The second step is making the choice to do something to change what we don't know.   What worked in the past isn't what is going to work in the future. 

2010 needs to be the year you reinvent your brokerage.  "It's never too late to be what you might have been." George Eliot

As we begin the process of reinventing ourselves to face the new economic realities of life we must change the way we conduct our day to day businesses.  Focus on the Big Rocks and we can build a high trust business with loyal followers, and motivated and productive, employees and agents.

Another buyer backs out of a deal.

The deal seemed like a dream, 20 competitive bids in a 10 day span, a posh address, and a who's who of neighbors.  In a story right out of the front pages of today's economic reality the seller needed the money to pay the mortgage, not quite a short sale but maybe a distressed property.

I'm not sure of all the particulars but the winning bidder simply canceled with a simple written statement "I am awfully sorry but I need to cancel this because of the paying problem".

Even the dead are victims of the economy.  When the ebay auction ended the occupied crypt above Marilyn Monroe had apparently sold for a whopping $4,602,100.  At roughly 8 feet deep and 3 feet high that is some price/square foot.

I guess Richard will have to stay put for now while the other bidders are given the chance to make good on their bids.

Saturday night I went to summer school, not your typical summer school, but summer school as in Jimmy Buffett's 2009 summer concert SummerZcool.

Never in my wildest imagination did I think I would leave that event with a better understanding of marketing.  That assumption couldn't be further from the truth.  Buffett has an amazing ability to connect with his audience.  Most of 30 or 40 thousand parrot heads have as much in common with Jimmy and his Coral Reefers as I do with the man on the moon.  However Buffett connected with everybody.  How did he do this....He Kept it Local.

Every imaginable reference to Chicago was made.  He talked and sang about Bars on Belmont Street, Hamburgers at the Billygoat, Surfing Lake Michigan, Tourists from Iowa, Hookers from South Cicero and had people on the Southside of Chicago singing Go Cubs Go.

Much has been said about being the local expert.  Buffett has been the king of local for his entire career.  I have seen him in numerous places at various points in his career and each time he made me think the city and venue he is playing is special.  It is this ability to connect that keeps this 62 year old, who has only had a handful of radio hits one of the highest grossing concerts year in and out. 

Local appeal and local information is the key to keeping and attracting loyal parrot heads.  Weather its real estate, or entertainment, people also want to feel the connection.