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Traffic, Schmaffic - You're Delusional

By
Services for Real Estate Pros with MyST Technology Partners

We live in a traffic-centric world populated by very intelligent people that blindly assume traffic is the answer to everything and traffic metrics are the only thing we should worry about when measuring our online marketing strategies. This is a delusional attitude and lots of business people suffer from it.

It's good to have traffic, but it's not an indicator of success in your core business objective - UNLESS of course, your core business objective is to create clicks on banner and AdSense ads. Most realtors are not trying to earn a living three pennies at a time with banner clicks. Traffic (in and of itself) is almost as irrelevant as the number of people that happen to glance at your sign while trying to see what suite number their dentist is in.

Like cholestrol, traffic comes in two forms - good traffic and bad traffic. Driving traffic to your weblog based on relevant conversations that occur through natural and common interests is good traffic. Traffic acquired though participation in a link farm only ads to your delusions. Spending a lot of time trying to squeeze more clicks through to your blog or website is (for the most part) a fabrication of traffic and it serves only to feed your sickness.

Most "bloggers" (i.e., people that blog all day) would have you believe that you must establish a large audience and high (and always growing) traffic numbers to be successful at business blogging. This is true if you want to be a "blogger". But I've learned that the vast majority of business people don't want to become bloggers - instead, they simply want to benefit from participation in the blogosphere. Traffic will naturally find your voice through long tail queries (search referrals on things you write about) and through participation in the blogosphere. But it's possible to leverage blogs successfully without spending a fortune in time doing it. The traffic you earn naturally is the traffic you [really] want - these are the people that are looking for exactly what you know or what you sell.

I recommend a balanced diet of metrics because our websites and blogsites are used interchangeably to build brand, create awareness, promote products, sell stuff, and oh yea - my favorite - provide a high tech place where someone can grab the phone number to your circa 1968 technology known as the FAX machine. ;-) The variety and types of complex interactions that come from blogsites and websites are too diverse to lump into one measure that incompletely and inadequately describes business performance. Your traffic-centric sickness has convinced you that a click to your contact page about buying a home is of equal importance as a click to download a Rolling Stones ring-tone. Please... [sigh]

You can escape the traffic affliction by looking at three basic business metrics for the last 12 months. As an exercise, try this:

  1. Divide your gross sales commissions by the number of page hits in each month - put the values in a column chart.
  2. In a separate comparison column, plot your page hits by month.
  3. In a third column, plot your gross sales commissions.

These three data elements will tell you many things about traffic - you're all bright people - I don't need to explain what sales-to-hits tells you. Some of you will quickly conclude that traffic is meaningless when measured against sales. In fact, some might discover that traffic is rising rapidly while sales remain the same. And some of you might find a positive correlation - good for you! You might not be delusional! Don't get too excited -- correlations are often not causal, so investigate deeper.

My advice -- take a chill pill on traffic and focus on measuring things that actually tell you something. Here are some examples that are blog-centric:

  • Ratio of comments to total blog posts
  • Ratio of comments to total blog page hits
  • Ratio of contact me page hits to total page hits
  • Ratio of total page hits to sales
  • Ratio of pages indexed to sales
  • Ratio of blog page hits to property search requests
  • The number of new names in your email archive month over month

When tracked month over month, these metrics will tell you new things about your blogging effort and its relationship to specific business activity. I suspect you could create some new and creative measures for your web site as well.

Get well. ;-)

Comments (18)

Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO
Thank you Bill, this is a refreshing post! I am a neophyte about it all. The only thing I know is not very scientific. I have a consumer blog with less than 10 comments on it. But every time I email my latest posting, I get emails or calls back. I got three lunch invitations on the last one. (One is a past client, two have yet to buy) which may be bad for my waist line but good for keeping in touch with people...which is my goal on that blog. I will bookmark your post so I can begin to be a bit more scientific about it all. 
Nov 02, 2006 08:09 AM
Jim Lee, REALTOR, CRS, ABR
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

Good call Bill; traffic is not something you can take to the bank and make your house payment with, commissions checks are.

My success measuring device

Nov 02, 2006 08:21 AM
Linda Davis
RE/MAX Home Team - Gales Ferry, CT

There is so much good stuff here it is sometimes hard to keep up.  Thanks for the post.

Nov 02, 2006 08:32 AM
Eileen Landau
BAIRD & WARNER, NAPERVILLE - Naperville, IL
ABR, CRS, e-PRO

Yeah, I figured out that I don't need the world visiting my blog or website.

Only those who wanta buy a house. I also can track how many hits that come from my blog and AR. I suspect that some of them will result in business...and alot will not.

I'm going to do my numbers at the end of November as that will give me a full year's stats to play with.

Nov 02, 2006 09:06 AM
Lisa Dunn
Edina Realty - Minneapolis, MN
www.TwinCitySeller.com

Thought provoking.  You mention tracking these over a year.  Is it possible the first year is a warm up period?  If not, how much time does it take to get the traffic to a point where it's even worth tracking?

Nov 02, 2006 09:38 AM
JudyAnn Lorenz
Bar JD Communications - Mansfield, MO
Virtual Marketing Consultant

Thanks for bringing out a rounded side.  Real Estate people who are serious are in business to market property. 

There is a place on the web design software for keywords, of course and a place nearby for a page TITLE and DESCRIPTION.  That's the little story that is behind your name on Google when your site turns up on the Internet search.

Keywords might be the bait or the fishfinder -- but the Title and Description are the tools that will grab the searcher who is looking for real estate. 

The Goal is to get the real estate market to your site and keep them coming back with easy to use information and service.  The blogging experts have just told us in the past couple days that it might not be a really good idea to sit at your desk, waiting for the next big one to come in the door and just post, post, post.  Post useful, interesting, compelling, engaging information once a week and work on real estate the rest of the time will probably pay off.  If you want to post while waiting, think about getting a blog on a different topic.  If you're good, you could even link that one back to your real estate site.

Your website and all of its toys like blogs, surveys, blinking banners, maps, on and on are TOOLS to use wisely and to help you market property and earn commissions.  I tell clients this all the time. The people will come to YOU and it is okay to use the website to get their attention, but few buy property solely on a website.  They are still wanting to talk and work with the person.  The person who crawled from behind the monitor and convinced them he/she was REALLY glad the buyer/seller came in or called. 

Nov 02, 2006 09:50 AM
Bill French
MyST Technology Partners - Dillon, CO

Jim (Lee) - excellent post - better than mine.

"Have I earned any commission checks from my website lately???"

Indeed - this is the right question to ask, and unfortunately there are no clear and hardened processes that can track 100% of the cause for such activity. So, we try to create various metrics in the hopes that we can establish some sort of data worth monitoring. I'm pretty sure traffic is not ideal, but I'm not sure what *is* ideal. In any case, every business is a little different, so the owner is likely to know best.

Nov 02, 2006 10:18 AM
Bill French
MyST Technology Partners - Dillon, CO

Christian...

"... but the smart webmaster will be concentrating more on conversions."

I'm not really a smarty pants when it comes to tracking conversions, but most people I know that are experts in this field are troubled by one thing - any attempt to track conversions and pin them solely to a specific web action are likely to be influenced by a subset of the bigger picture. Indeed, we all suffer from an incomplete version of reality.

I'm not saying that a conversion-centric approach is a bad idea (because, really I don't know). But I have a hunch that any rigidity along this axis is likely to shape decisions that rule out performance outcomes that will escape the conversion-tracking process.

A good example - what if Forbes Magazine calls you for an interview because they noticed a blog post. They called their research department to track down a contact name which then used a completely different search process to come up with your name and phone number. You then had the interview and as a result landed three quick sales through your normal conversion-tracked process. The possibility is that you might assume the sales came from your normal online SEO strategy, not your blog. You might also jettison the blog because the conversion process indicates the ROI is poor on your blog.

BTW, this just happened - we picked up a few really good leads recently and we had no idea they were inspired by this Forbes article about our eBay Blogsite product line.

Nov 02, 2006 10:34 AM
Bill French
MyST Technology Partners - Dillon, CO

Judy -

"The person who crawled from behind the monitor ..."

Well stated and excellent advice.

Nov 02, 2006 10:36 AM
Bill French
MyST Technology Partners - Dillon, CO

Eileen -

"I also can track how many hits that come from my blog and AR. I suspect that some of them will result in business...and alot will not."

Yes, and I understand in real estate (I'm not an agent BTW), that your activities on AR may lead to referrals. This is another positive by-product of participating in the conversational web, but it is also success metric that cannot be found in traffic, rankings, or conversion data.

One way to try to get a little better handle on referrals is to publish (in your profile) a special email address for referrals - something like referral@MoveUPtoNaperville.com.

Nov 02, 2006 10:42 AM
Kevin Fontenot
IDS Consulting - Houston, TX

Rather than denigrate the importance of statistics you need to look at the bigger picture.  If you subtract any crawler hits and other non-human traffic and get down to a real number you can get a baseline of interest for your site.  And now if assume that your content is localized and related to the purpose of the site, you have gotten good traffic. 

If you reduce traffic to "good" and "bad" you are marginalizing the visitor.  Any person that visits your on-topic site had a clear reason to be there and they are a boon. Bandwidth is cheap and getting people to visit your blog because they think you know what you are talking about and are helpful is a good thing.  Maybe they won't buy from you but they may tell someone that does - word of mouth is a powerful thing and free publicity is good too.

And while it is nice to think that your blog made a sale for you I just don't think you can actually ever prove it.  No matter how good the site is it still takes a good agent to make the sale.

Nov 02, 2006 02:37 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty
I'm on board with Kevin here.  One thing I would add is that while you may not be able to "prove" a particluar sale from a blog. you can capture the metric of how many leads come from the blog, and you should know your conversion ratios from leads to appointments to closings.
Nov 02, 2006 11:17 PM
Bill French
MyST Technology Partners - Dillon, CO

Kevin:

"Rather than denigrate the importance of statistics ..."

Hmmm ... I thought I was *advocating* the importance of statistics -- specifically those that actually tell the business owner how their online efforts relate to real results. Most folks I talk to look at believe traffic is the all important metric. I attempted to say (in this post) - that's delusional - consider looking at performance in context with outcomes.

"Maybe they won't buy from you but they may tell someone that does - word of mouth is a powerful thing and free publicity is good too."

I agree - this is a very powerful aspect of brand impressions - constantly getting the name out there so that these fleeting connections are made. But doesn't this comment specifically support my assertion? That (a) increased traffic is a poor indicator of such outcomes, and (b) word of mouth connections bypass even the best engineered conversion tracking data?

"And while it is nice to think that your blog made a sale for you I just don't think you can actually ever prove it.  No matter how good the site is it still takes a good agent to make the sale."

Bingo - no matter how good the site, regardless of how refined the conversion tracking and site stats are, letting the aggregate traffic numbers sway or dictate business decisions can be distracting and misleading. I think we agree that to get a sense about online performance, you have to look at the aggregate (big picture), but in the context of how that performance relates to big picture things like sales, new contacts made each month, etc.

Nov 03, 2006 12:17 AM
Bill French
MyST Technology Partners - Dillon, CO

Tony -

"you can capture the metric of how many leads come from the blog"

How?

Nov 03, 2006 12:19 AM
Christine Adler
FindAHomeWithMe.com - Fort Lauderdale, FL
SE Palm Beach, Broward & NE Miami-Dade Counties FL
All good ideas. I think you should look at total sales and listings sold from internet sites. Devided by expence on internet and time on interent. That will tell you the true value.
Nov 03, 2006 03:59 AM
Bill French
MyST Technology Partners - Dillon, CO

Christine -

"total sales and listings sold from internet sites ... divided by expence on internet and time on interent."

Good point - this would weight your time investment in the effort and create an interesting measure of performance.

Here's another question - how do you measure (or track) internet related deals? Imagine you put up a listing and someone else promotes it and closes the sale all without you knowing it (until you get a check of course). The Internet effort you put in may have caused it to be discovered and promoted, but would it escape your typical traffic and conversaion data?

Nov 03, 2006 04:09 AM