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Give the public a break.............

I just got my mail. Just like every few days there were postcards from real estate agents telling me of home values in my area, telling me they were number one, telling me this is the ideal time to put my house on the market(?), telling me of the homes they have sold recently (? - a quick check of the mls indicates none of the homes has sold in the last 6 months), and advising me that they are the "neighborhood expert". I have been getting these cards for years. The names and faces change, but the mailbox overload continues.

At some point, somebody has to spread the word. This sort of marketing has a minimal return on investment. Do the real estate guru's really believe that if you inundate a market with these sort of cards, you will land that listing? Of course, they will tell stories of agents that have had success. The majority of the agents that have invested money in these programs are not agents anymore. They went broke marketing. They took their toll on the tree population, they kept printers in business and they are now selling cars at CarMax.

New agents need to take a long look at how they have treated "junk" mail in their personal lives. Most people will respond to coupons that offer buy one and get one free meals. Real estate agents don't offer to sell your home for half price if you get the neighbor to list at full price. Brokers across the nation extoll the virtue of farming with postcards. Some firms will even offset your expense with credit for the postage. You still pay the bulk of the bill.

You can show your family and friends the wonderful card. You can sit back and know that 500 people saw your picture. You can enjoy your 15 seconds of fame as your card is glanced at and dropped into the trash.

Of course, if the mail arrives just as a homeowner has decided to sell and the homeowner does not know an agent and the homeowner doesn't have any friends he can get a referral from and the homeowner has no co-workers he can get a referral from...........he may call the number on the next card he receives. You just have to hope that yours is the one that hits at that moment under those conditions.

Last night, my wife and I were eating dinner when we were interupted by the phone. I am not on the do no call list. It was an agent with a local firm that very politely told me that his company had a listing in the neighborhood and they had a great deal of interest at the open house and was wondering if I was thinking of selling or if I knew of any of my neighbors that might be interested in selling. Sounded good, but the agent works in my office and the home they were referring to was my listing and I sat in the open house they were referring to and there were no visitors. Bad luck for the agent.

The lie bothered me, but I knew they were reading from a script, so I let that go. I was more annoyed that they had chosen to "cold call" a neighborhood at the dinner hour. Of course calling at that time will catch more people at home. Common sense would indicate that interupting a meal will not endear you to anyone. The fact that some of us have not chosen to be on the "do not call" list does not automatically indicate that we are hoping to hear from telemarketers. The list came into existence to stop annoying calls. Rather than take the hint that this method of marketing is neanderthalish, brokers and trainers alike have encouraged "boiler room calling" mentality. They all promise that it is a numbers game and if you call enough folks you will get an appointment and if you go on enough appointments you will get a listing. The public at large is hoping that you stop making the vast majority that just say no your stepping stone to possible success. The general public, whether they are on a list or not, really does have the feeling "don't call me, I will call you."

This brings up the last but not the least annoying marketing that I and others have to suffer. Walking the neighborhood may bring your face some prominance. You may get to know a few people. You will also be intruding on a very precious commodity - the free time at home your neighbors cherish. The demands on our lifestyle as we move through the 2000's are tenuous. Americans cherish the free time they have. Many of them truly don't want their weekend interrupted by a stranger at the door with a printout of recent market activity or packet of flower seeds. They want peace and quiet and privacy.

There are ways to market yourself effectively. You won't need to invade homes via the mail, phone or personal appearance. You won't have to spend yourself out of a career. You won't have to attend seminars and leave with an annual coaching contract. You won't have to buy every gimmick thrust on you at weekly sales meetings.

You can do it being yourself, working with your sphere of influence and focusing on being a real estate agent. If you don't believe it can happen, take the time to read posts by folks like Jennifer Allan. You can be yourself and allow the public a long deserved break. You can do it now. You can do it if you are a new agent. You can do it if you have been an agent for years.

A strong dose of common sense will carry you farther than all the cheerleading and direction of those that earn a sizeable chunk of the revenue you create. It is your decision how to practice your craft. I only ask...give the public a break.

Posted by John MacArthur Branch Manager on 09/15/2007 08:08 PM

Comments (36)

post cards, phone calls, farming, do not call

36 Comments on Give the public a break.............

SEP

2007

John,

I have been mailing to a neighborhood for a few years now and I have listed and sold 18 properties so far this year there. It took a few years of being persistant with my mailings but it worked out well for me. This development is what has helped me to have my best year so far in my 5 years of doing real estate. It has also make me the #1 listing agent for that town per the MLS system. I am now working on hitting another neighborhood hard that is a higher price range than this one. It may take some time but it ends up paying for itself in the long run.

Sally Mullen, Remax of Cherry Hill, NJ

Postcards do have their place.. after you make personal contact is best. Postcard mailings cost too much. If I do a mass mailing on a sold property, it isn't necessarily to generate response, it is more of a branding solution. I learned early though, that this is not nearly as effective as pro-active nose to nose, belly to belly marketing.

Sally - I thought it would take at least 5 minutes for someone that has been successful farming in this fashion to reply. I still hold firm to my belief that you are in the minority. If it is working for you, and apparently it is, then you should continue. How many cards do you mail? 18 have listed this year. How many other agents are mailing to the same homes? How many new agents have tried to crack your farm area using postcards? What is your hook? You work for a broker that gives you a great deal of latitude in the price you charge. Your success is more likely the result of your competence and ability to shine in a listing appointment than it is the result of mailing cards. If you were working for a broker that offered a less favorable commission, could you have been able to spend the money you are spending on mailing? You results, on the surface, are admirable. There may be many agents that are not in your position. I encourage anyone to continue what is cost effective marketing. In your case, it may be mailing, but, you are the exception rather than the rule. Thank you for sharing and continued success.

Great info John.

Lori - You are on to the secret of success as an agent.

Jason - Thanks for stopping by and reading my blog.

You have a fairly large list of negatives but not much of a list of possitives other than work your sphere of influance. Well we have moved around to much to have a sphere of influance that would feed anyone so what is your solution to that.

By the sound of your message we should not do any telemarketing, post cards or mailing of any type, not door knock or bother anyone at any time. Are you serious? Perhaps we shouldn't advertise in the paper or even do television commercials. They are too intruding on the public and we shouldn't bother their piece. I suppose we should sit at the coffee shop and chat with the customers. on second thought, hey may not like the intrusion either.

I think you got it wrong on all counts except the dishonest agent from your own company. I do all those things you are saying we shouldn't and because of it, I am the number one agent in my neighborhood, one of the top five in the county. I had a very successful post card campaign, I currently publish a neighborhood newsletter that has become the local newspaper.

Just because you don't like to be disturbed don't mean that it isn't the right thing to do. Perhaps you should give us a break.

John, I hear you loud and clear. Excellent post and I agree with everything you said. I know they work for some agents, but it is just not my cup of tea. I have success from the internet and mostly AR and my pay-per-click campaign.

James - I love a challenge. You feel that you don't have a sphere of influence that would be much help to you. Developing that sphere is the first goal I would offer. You don't mention if you have children. Your answer indicates that you may have a significant other. What do they do? If they work, their co-workers can be developed into being in your sphere. Do you attend a church? Churches are wonderful sources of friends that over time can be developed into your sphere. Do you enjoy and partake in recreational activities? Playing golf, watching sports, etc is another place that you can meet people that can be developed into your sphere. You are surrounded by opportunities. The main gist of working a sphere is to develop relationships with others. The fact that you are a real estate agent will be part of who you are and you really won't need to club them over the head with that fact.

If I were in a new area, I would seek out ways that I were in a place that potential clients could approach me on their terms. That may be choosing to sit on floor duty, sit in open houses, doing time in a booth at a community event. I have a sign with my brokers name on it (just following the rules in my state). It is one of those things that resembles the bottom of one half of a saw horse. I set it next to a table at the near by Starbucks. I have my laptop up and running and read the paper on line. People have approached me with questions and some of them have become clients.

I believe you should develop a sphere, put yourself in places where you can be approached on the customers terms and work to develop relationships with those you meet. I have to plug Jennifer Allan's book "Selling with Soul". It is a wonderful guide for those that wish to develop a lasting career.

John,

I hope other agents agree with your post. That means less competition for me out there. In this market realtors already don't want to put out the expense of the mailings so fewer agents are doing it. Thats better for me. As for me, I have someone print off my cards as they are doing other work for me and I do the bulk mail rate. My 1st commission out of the 18 sales that I have had there is what has been paying for my mailings. Sometimes you have to spend money to make money.

Ray - I am serious. I am glad that you have found success using these methods. They are not for everyone. In many markets, the cost of running ads on the television is very high. In most markets, newsprint advertising is akin to just tearing up dollar bills and throwing them to the wind. Real estate agents are only offered marketing systems by those that they will pay to do the marketing. There is not one marketing firm in my market that would ever encourage an agent to spend money without having a solid marketing plan, funds available to complete the plan and systems in place to review the results of the plan.

The internet is rife with marketing companies that offer a lot of glitz with absolutely no verifiable statistics that would justify the cost of their programs. Everyone of them will point to a handfull of agents that have used their system and been successful without ever revealing the list of customers that have come and gone and are no longer in the business.

It is to the benefit of those that are successful to claim it is because of this type of marketing. If new agents plow money into systems that most likely will not offer a positive return, they will join the 80% that fail. That will result in the experienced agents smugly sitting back and picking up the pieces left behind. Our industry has been built on the failures of others and I would prefer that anyone new have a fighting chance of enjoying a rewarding career.

Missy - Thank you for your kind words. I do believe every word I shared.

Sally - One of the biggest lies new agents are told is "you have to spend money to make money". The truth is you have to realize a return on every dollar you invest in any marketing plan. To blindly send post cards into homes, hoping for a miracle makes no good business sense. Why that is like buying leads from an internet provider expecting that everyone you receive is actually a live prospect.

Folks:

When someone reports themself as having an exclusive on the truth, watch out. It may be the truth as they believe it but it's not necessarily the entire truth. John may be partially right but he is not completely right. For example, if you do any marketing what so ever you are spending some money so it does take money to make money.

He is right in the fact that you need a plan. You can't send out post cards blindly and expect results; they have to have a purpose or message. You can't make phone calls just to be busy; you have to have a reason to make the calls. Marketing works, as long as you are consistent and do what works. Just throwing money at web sites or TV advertising or anything else rarely works. If you develop a working web site that gives great information or is a tool, then it works. If you have a focused and concise TV advertising campaign that is focused for a specific action then it works. If you have a post card campaign that is well thought through and has a call to action, then it works Personally I have never done TV ads; I don't think they will give me the results I want to get. If I get bigger, perhaps I will look at them too.

One thing about this blog, it got my attention but it disturbs me to think that someone is trying to tell new agents that they shouldn't try to generate business with proven methods. My conclusion is that if you take John's advise you may be wishing you didn't

Ray - I do not have any exclusive on the truth. I do believe what I shared. What would be the point of taking the time to write the blog if I did not believe it? Read what I said "One of the biggest lies new agents are told is "you have to spend money to make money." I agree that the intelligent spending of money will assist you in making money. As you noted, I think you have to have a plan, etc.

I did not tell anyone they should not attempt to generate business using proven methods. I just don't think that random word or mouth from the few that are successful constitutes proving a method. It used to be a proven method that all the listings were kept in a book in the office. That fell apart with the advent of the internet. It will disintgrate further when the DOJ rules against the NAR. Proven methods have to have verifiable proof and what may work today will become outdated tomorrow.

There was a time when neighborhoods were made up of families that interacted with one another. We have moved to planned communities and nuclear families. It is not the America of Mayberry in many areas anymore. As I stated, I think pouring money into marketing that has a poor track record is a poor decision. You feel it is a mistake to follow that logic. Your methods have produced an 80% failure rate. I don't think that rate reflects the true capabilities of those that choose this career.

John:

You seem to have a crystal ball that tells the future and even knows my success rate. How do you know that the DOJ will rule against the NAR? How do you know if my methods have produced an 80% failure rate?

It's true that 20% of the agents do 80% of the business, I also feel that any marketing program that is worked to the fullest potential will work. You can't say that all advertising campaigns have a minimal return on investment.

Half hearted campaigns that quit before the results can be realized won't work. I find that is what the 80% do that fail.

Ray - I don't have a crystal ball. I don't know your personal success rate. I am only assuming that the DOJ will prevail against the NAR because in my opinion the NAR is guilty. I don't necessarily agree, but then I was not part of a system that has attempted to maintain total control of listings. The 80% failure rate is a reference to widely accepted statistics that 80% of new agents do not make it beyond their first year (or less). The statement that 20% of the agents do 80% of the business is also skewered. I doubt that anyone is tracking that figure and it would be ever changing as agents enter and leave the business on a daily basis. Every marketing program that is worked to the fullest potential does not bring results. I do not believe that all advertising campaigns have minimal return on investment. I don't think that you can do just one thing and be successful.

I am not picking a fight here. If you can afford to mail postcards to 500 or so people on a monthly basis and not have a return for one or two years and those funds are part of your marketing plan, then go right ahead. The problem most new agents have with such a plan is they can not afford to maintain the mailings month after month after month. When they start and stop, the money has been lost.

My thoughts are that new agents should focus on cost affordable marketing that is not intrusive. It is only my opinion and I have no doubt there will be many different opinions on the subject. Accept that we will have to agree to disagree. If you feel that you need the upper hand, by all means take it. That too will speak volumns about the tried and true methods of the past.

Take it easy John. My point is that you don't have to be so dogmatic. Sure, some methods work and some don't. Keeping up with the times and new methods is a given. However you cant make broad general statements and be 100 percent correct.

John, the DOJ may win against NAR, but in my opinion NAR has done nothing wrong. Any agent can join NAR w/o being forced to. Most professions have an association of some sort to join. MLS was formed as a way for brokers who choose to participate a way to share listings as a benefit to the seller. You see John, it's all about choices. There is no profession more competitive, more wide open with choices, than real estate.

Secondly, on your marketing ideas, I disagree with much of it. Farming can be very successful but it takes persistence. If you do things to become known in the neighborhood and continue to send out mailers regularly, the calls will come in. The immediate returns are small but the long term gain is great.

However, I do agree that SoI is the best source of business.

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2007

Ray - Thank you, that is my point. The tried and true methods of the past are not 100%.

Brandon - I know the history of the NAR. I also know that members do not have access to all the listings in their State. If I have buyers, interested in Ocean Property, I can not access the MLS for that area. The ocean community has it's own association. You can not join unless your license is domiciled within that area. This is not set up to "benefit" the seller as you have stated. This system is set up to prevent "city" agents from coming down to the shore. This is to protect agents, not customers. This is only one example of systems in place that may cause the DOJ to win.

Anyone that has spent anytime reading various boards visited by real estate agents has seen threads that begin by slamming a "discount" agent. Within the thread several agents reveal that, well, we just don't show their listings, etc. They share with the world that other members of their office agree with one another not to show those listings. A lot of these folks must be Realtors, because they mention access to the MLS. I think this sort of behavior has caught the attention of the DOJ as well. I would be fascinated to see how many people would even be a member of our hot air association in DC if they could access the MLS without them. The MLS will last, but without that tie-in, NAR and the political hacks and rosy colored glasses spokesperson would wither on the vine.

Thank you for pointing out that immediate return on mailing is small. It is not a marketing method that is affordable for new agents. If new agents begin their career expending "sweat equity", they will find success and if they become successful using those methods, what purpose would they find for pouring good money down a hole they did not need to become successful?

John, EXCELLENT post. Again, you said what I try to say, but much better. This is bookmarked and will probably be included as required reading in my SOI program. New agents do not have the time or the money to spend on a farming campaign. Once an agent has a presence in the neighborhood (that is FOR SALE AND SOLD signs) farming efforts will probably pay off. Otherwise, into the trash we go.

To say that "just because I don't like to be bothered doesn't mean I shouldn't do it to others"... sheesh. I can't even imagine that attitude. Whenever I consider a marketing campaign, or heck, even a marketing EMAIL, if I have a twinge in my gut that it's not something I would appreciate, I delete it. And breathe a sigh of relief.

I love your line about the "if's" -

In reality, IF the agent gets a call from one of these folks, it will probably just be to compare the information he will get from the referred real estate agent he ends up with after he's told a few people that he's considering selling his home.

Oh,I could go on and on... and I already have...

Jennifer - As I sat in a dark room, reading comments from folks that think I am out to lunch, I knew you would get it. Thanks for your support.

you beat me to the punch, as I was reading your post I just kept thinking I need to tell you about Jennifer and SWS and there you were! good job John!

John, as I understand, each MLS is individually owned and that is why they can shut out agents not in their local market. I think if NAR wants to win, they need to prove MLS is agent owned and not public and go from there. Personally, I don't think I want public to have MLS access, which I'll go into if asked. Otherwise, I'll leave it at that.

Also, I'm careful with the word successful. I don't want to attach a # to it. I tell the newer agents success is achieving your goals. If your goal the first year is to learn how to become a good agent and close x deals and you meet your goals you were successful.

I agree with you that "traditional" methods don't return profits like they once did. For instance, I rarely run print ads.

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2007

Janie - Never knew who she was until I got here. Discovered that I was not alone. That's nice.

Ray - I don't see how NAR can capture the horse. The barn door is wide open. The internet revolution caught them offguard. They were probably still sitting in a board room discussing press releases when brokers across the country saw fit to sell their information to various redistribution points. They did this with full knowledge that the redistribution companies would make the information available to the public. They did not realize that some of the redistribution companies would sell access to the inquiries to agents that purchased the information.

Somewhere in the cloud of smoke and confusion, agents developed websites and they themselves became redistributors of the information using various "idx" firms. In some cases permission was sought from the broker, but there many cases where the dollar fee was paid and the "idx" provider just plugged folks in.

It is quite the quandry. In order to have valid access to the MLS, one must join the NAR and their local association. The dues you pay give you access to your MLS and as an added bonus, you can call yourself a Realtor. For just dollars a month, you can search for homes and claim to be ethically superior to folks that are just real estate agents. The NAR has been advertising for years that one should make sure that their agent is a Realtor. I would love to see the results of a private survey of the general public to see if anyone actually is listening or if (as I believe) the vast majority of the public does not know the difference.

The NAR has exerted so little control and policed policies in such a cavalier fashion, they are scrambling. The have been caught in what appear to be violations across the country. The will have a difficult time avoiding a loss here.

Oh, one other thing, the MLS is not agent owned...it is Broker owned.....agents don't have listings.

It's such a pity it happened this way. A few bad apples give the rest of us a bad name. I have REAL problems with agents who lie or misinterpret facts truthfully. Unfortunately, you and I cannot change the world around us but we have a choice to act professionally to those we are given a chance to serve.

Good job on the blog. EVERY AGENT need to read this....

Loreena - Thanks for commenting. I hope more agents take the time to read this a ponder how it may fit in their career.

John:

Check out this link http://activerain.com/blogsview/132032/The-Best-Marketing-Plan Old methods still do work.

Ray - They sure do. By the way (or BTW for you techies) you need to edit your website link in that post. You forgot the P in Perry. No one that has read the blog has been able to visit your site. I figured it out and enjoyed visiting.

Again, let me share, I want to increase the odds of success and reduce the overall cost of marketing for agents, new and old. An earlier comment mentioned that you have to spend money to make money. I disagreed. Floor duty does not cost any money, visiting with members of your sphere does not cost any money and sitting in an open house does not cost any money. All marketing does not cost money.

My other thrust was for agents to break away from forcing their way into homes and change their methods to more consumer friendly styles.

Hi John,

Wow! You sure know how to get the Irish up! I enjoyed your post and all the comments it brought out.

As a loan officer, I am amazed at the mail I get telling me my loan is about to adjust...HELLO, not until 2010, I think I am OK for a while yet! Sphere of Influence marketing, By Referral Only...It's all about friends helping friends. The majority of our business is by referral, we have learned that taking care of the client and keeping in front of them is the best way to get and keep the business!

Thanks for your insight.

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2007

Bridget - You do get it. Just keep peekin' over your shoulder. 2010 will follow right on the heels of 2009.

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2007

John,

The post is great. I do unfortunately see the "Smash and Grab" type of marketing working and I think this just fuels the fire for more of it. The best practice for the long haul is to promote youself in a more professional manner. The quick "WOW" marketing seems to be a sign of the times. Much of it from the "MOTIVATION REAL ESTATE SPEAKER CAMPS".

Mike Lewis

Mike - The current battles will simmer and life will go on. This is not a war. As professionals, we are charged with assisting clients in the purchase and sale of homes. Those that accept the job, will either rush through their career without regard for the public at large, and then flame out or they will build a practice based on techniques that appreciate the public at large, having a client base to work from regardless of market conditions.

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