Even though I’m not a Realtor I hear about situations daily involving Internet marketing that have me scratching my head and asking myself, “Does that Realtor understand that they are running a business? And does he/she understand what a good business person ought to focus on in making solid, thoughtful decisions?”

For the purposes of this post, I’ll ignore the zillions of situations where no Internet marketing is done at all and focus only on those where I wonder what the people were thinking when they decided how to market on the Internet.

For me, three fundamental areas of concern emerge:

1. Products and programs should be evaluated and used based on their effectiveness in producing bottom line results – not on coolness.
  • Many of the tech driven products being introduced today emphasize a certain “cool” factor. Their advertised unique selling proposition (USP) is their “coolness.”
  • Oftentimes Realtors buy them on that basis – coolness – without analyzing how that product/service will contribute to their bottom line and to achieving their clients’ goals.
  • Realtors should be asking some fundamental business questions to guide their decisions about what products and services to use in effectively marketing themselves and the homes they represent? Here are some:
  • What should be my marketing budget – a different question than “how little can I spend?”
  • What expenditures on what approaches are most likely to yield the best result (i.e. achieve the clients goals). The correct answer to that question is almost always the best investment choice.
  • Who is the target audience for this home?
  • What kind of message and presentation most appeals to that audience?
  • Based on pricing and other factors, how long will it likely take to sell this home?
  • If I think the house will be on the market for an extended amount of time, what kind of flexibility does that call for in my Internet marketing?
  • How does that impact my marketing budget and my marketing approach?
  • What tools and techniques are best for this property?

2. Realtors – at least the good ones – should focus on helping clients achieve their goals and on building their business – not on foisting new toys on people because they represent the latest techno wet dream. That begs the question, what is a home? To me, a home is a place to:
  • Raise your children; feel safe; entertain; dream; relax; putter; create memories; build equity; and express your life style.
  • For most people it’s the largest investment and the biggest asset they will own in their lifetime.
  • A home, unlike a California marriage, is not something that you’re going to trade in next year if you grow tired of it or if something better comes along. 
  • When people search for a home they want their senses and emotions caressed and massaged, they don’t want them assaulted. They want to feel an intimate connection. They’re not looking for a rock concert rush.
3. Ultimately success is measured on sustained profitability – not on how often one can introduce the latest techie toy, or continue to use outmoded, ineffective advertising approaches. Selling real estate is about reaching people, building trust and creating sustainable relationships. It’s about being creative, timely, relevant and focused on profitable results – for clients and Realtors.

As a professional, Realtors must know more than their clients about what will work best to sell homes. Many of today’s consumers are more tech and information savvy than most Realtors. That doesn’t automatically make them better marketers.

I believe that many Realtors roll over and bow to clients’ unwise wishes simply because they don’t know enough or have the confidence to advise clients about alternatives. The attitude of, “hey, I know it’s wrong, but the client wants it and I never disagree with a client” might win a few battles but it’s a recipe for losing the war.

Most people want professional advice confidently and knowledgably offered by the people they hire. That’s why they hired you. Any given client can tell their Realtor that they want a particular Internet or print media presentation. At that point it’s the Realtor’s responsibility to diplomatically determine exactly why the client wants that approach, and, if their reasons don’t make for good marketing, to point out better approaches to reaching the market and selling the home.

I believe that if more Realtors focus on some business basics (like the 3 above) then:
  • Selling real estate will look and feel more like a responsible business to more consumers;
  • Realtors, in the aggregate, will be more highly respected; and
  • More Realtors will increase their bottom line income.

 

84 Comments on Real Estate Is A Business - It's For Grown-Ups Who Understand How Business Works

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SEP
18
2007
 Tom...Thanks for responding.
9:35am • #65

John...Thanks for your comments.

Sounds like your team is on top of the situation and is consistently pro-active instead of reactive. I trust your marketing plan has a well-conceived Internet marketing component. 
9:38am • #66
William...Thanks for your response and your observations. I completely agree with you.
9:40am • #67

Fran...Thanks for your response and for sharing a bit of your experience.

I believe that one of the keys to long-term success is to have a consistent process to continuously evaluate what works and what doesn't. That process should allow for the systematic testing of new products and methods so that you stay current and relevant. But always, critical evaluation should outweigh hype and buzz. 
9:45am • #68

Cindy...Thanks for commenting.

I believe you're right on. The ideas apply to stagers as well. Staging, in my experience, is often not top-of-mind with a great many Realtors and with consumers. So you have some challenges in simply creating the consciousness about how important it can be in so many situations. I think that great staging goes hand in hand with great Internet marketing.

9:52am • #69
Kaushik...Thanks for responding. Ah yes, the new Realtors. As George Bernard Shaw once said, "It's too bad that youth is wasted on the young."
9:54am • #70
Missy...Thanks for stopping by. I'm glad you enjoyed the post. It's nice to hear a nice ditto.
9:57am • #71

Tracy...Thanks for your comments.

I love your "business suit"/"party dress" comparison model. And I especially love the fact that you put us in the "business suit" category.  
10:00am • #72
I totally agree with you, we are running a business and we need to make better decisions.  I now have a rule that if I'm not getting at lease a $15-$1 return on my marketing dollars, then I'm not interested in their services.  
11:39am • #73

Wayne...Thanks for responding.

Putting an ROI guideline into place is a good idea. I'm interested in learning how you tie revenue to specific marketing expenditures, especially when multiple marketing programs/products might be used in marketing the same home. For example, you might do print ads and some kind of Internet marketing program for the same home. How do you determine which one worked and to what extent?

12:56pm • #74

I totally agree. One problem with Real Estate Licenses is the lack of education required. There are lots of people who just don't get it. They don't understand finances, and they don't understand business.

 

Logan Foreclosures 
Logan Realtor
9:59pm • #75
Logan...Thanks for commenting. Sad but true.
10:11pm • #76
SEP
19
2007

Hi Bill,

I use multiple/different email addresses to track responses in various neighborhoods in my mailing.  For instance, Wayne@neighborhoodname1.com, Wayne@neighborhoodname2.com and etc.  It's a good way to track responses and control cost.  I'm amazed as to how many service providers can't explain the ROI that their pass clients HAS received as a result of using their products.  Like most of us, I've been played too by dumping (not investing) so much money into marketing that wasn't generating desired results.  

 Signed

"Live and learn and No longer a sucker."

7:50am • #77

Good comments. I became a realtor almost 5 years ago. It was a great market for attaining fairly quick success, which I did.  However, when the tough times hit, those of us who have never been through a "down market" before need to listen and learn from the vets.

I am determined to not only survive, but thrive through this trying time. I am doing all I can right now to work my SOI and make sure I am doing Real Estate Basics 101.  It's still about keeping in touch with people and showing that you care. But it's also about keeping current on technology and knowing where most buyers and sellers start today--and that's on the Internet. I'm convinced we all need to have an online presence or we'll miss a lot of business. Brenda
Brenda Flower
9:24am • #78

This is excellent!...<>I am a new realtor, and a professional marketing person.  You have really nailed so many points that drove me to try to enter this industry to 'raise the bar' so to speak.  Bravo.

Lisa
2:33pm • #79
Wayne...Thanks for following up and answering my question. Good idea. You are generating the kind of data that, I believe, also helps when talking to a prospect/client about the best way(s) to market their home and why.
7:33pm • #80

Brenda...Thanks for commenting.

There's no doubt in my mind that you are correct about the need to have an effective Internet presence. What continually surprises me is that no matter how much is written about it, what a relatively small percentage of the Realtor population does it well.

My advice to you is: take advantage of the gap between the need and how sparsely it is being addressed. Don't pay any attention to the folks around you who aren't doing what they should on the Internet. Build a strong presence, pay attention to all the other basics as well - and reap the rewards. Best of luck. 
7:39pm • #81
Lisa...Thanks for responding. I'm glad you found some value.
7:40pm • #82
SEP
23
2007
382,015 Points 7 Featured Posts Localism Sponsor

Who would of thought that meeting people face to face would pay off???

 Fantastic Entry...

 Connor MacIVOR
4:45pm • #83
SEP
24
2007
 Connor...Thanks for reading and responding. I hope you found something useful.
12:14pm • #84

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Bill Leider

Manhattan Beach, CA

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