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DOES YOUR BUSINESS PLAN NEED A TUNE-UP? OR A COMPLETE OVERHAUL?!?

By Marsha Benya

Real Estate Agent with Century 21 New Millennium

December 01, 2007 02:49 AM

Your Real Estate Business is very much like the vehicle you drive. Constant care and maintanence is required to keep it running in tip top shape. At times an extended shop visit is need and serious adjustments must be made, and with the changes the market has seen this year, it might be time to consider that overhaul!

For myself, I finally established my own team this year, and boy, what an education that has been! Previously my business had been primarily with developers, but with droughts restricting perc tests in my region, establishing my team meant re-establishing a foot-hold in residential sales.

Now that December has arrived, I'm trying to determine what worked out well and what didn't, but here's what I've seen so far, and I make no promises as to the validity of my discoveries in relation to the quality of your market and/or business! So here they are, in no particular order:

Web Based advertising return values rose in 2007- This isn't new, but the value of web marketing is here and will continue to rise. Agents that don't believe this are going to find it increasingly difficult to maintain market share among an increasingly web-based business.
FSBO's are starting to understand the need to use a Realtor with increasing return- A tough market is exceedingly difficult for a FSBO. More and more people are willing to work with a Realtor if they are confident that they are getting VALUE for the money they spend on our fees.
Purchasing Leads Online CAN be profitable- There is a huge number of companies trying to sell cold, dead leads, however. If you can find a company that works for you, great, but don't expect it to be cheaper than doing your own lead generation.
Farming still works- Everyone receives mail. The important thing to remember that with an increasingly web-savvy audience, don't wait to get to the point! We live in a get-it-now mentality, and consumers are better informed than ever before. Be willing to make necessary adjustments in order to appeal to that mind-set.
Include your web and/or blog address to EVERYTHING- Allowing consumers to know where and how to find you online is vital. It allows them to view and understand who you are on their own time, and lets them see just how active and you attune to their needs that you really are.
NOTHING has been able to replace the value of talking to people- First Degree Contact is STILL the most cost-effective way to generate business.
Just Listed Mailers have seen a poor return recently- On the other hand, Just Sold Mailers have seen a very strong return for picking up new listings. It seems that this is a smarter way to spend marketing dollars right now.
Blogging and Forum Chatting has been very positive- We're seeing the phones actually ring based off of online discussions, and we're going to continue exploring this avenue of marketing.

Sitting down and analyzing what has worked well is essential to a successful business. Don't be afraid to experiment! Our job is to get homes sold, first and foremost. How we do that has to change as the technology around us changes.

Real Estate Books like Homes And Land were once a staple for my new lead generation. Now it's supplemental. My website was once supplemental; now it's primary. We're going to continue to evlove and improve our strategies. I'd love to hear what other markets are seeing, what's been working, and what hasn't!

~Marsha Benya

Century 21 New Millennium

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Tim Nebergall

Front Page Rankings, Inc. - Modesto, CA

SEO Web Design Engineering - Rank Better On The Search Engines

Nicely put Marsha! Indeed we've seen a remarkable ROI on internet marketing efforts and I agree with you, that this trend will continue. Over 80% of all home seekers are starting online now. While buying leads can be somewhat useful, in general it's hard to achieve your ROI unless you are working with a relatively large telemarketing team.

See my blog for more information on lead generation, incubation and handling. You can achieve your ROI if you plan well and make sure your efforts are targeting in the right place.

Dec 01, 2007 02:53 AM

Don Price

Mid Carolina Realty LLC - Pinehurst, NC

I agree with nearly everything but would like to see the data used to come up with your conclusions.

Rather then lumping everyone into 1 basket as in as in "We live in a get-it-now mentality" which is more in-tune with Generation 'Y'ers' ~ the same approach may not be as useful with the 'Seniors'. I guess we might to take some pains tailoring our message to match our targeted audience.

Purchasing leads from a vendor i.e. HomeGain, HouseHunt and many of the other minor players is like shooting yourself in the foot and then going out to run a marathon. Why we allowed these things to get started in our industry will be haunting us until we no longer exist.

I still think as others in the blogs point out, if we spent as much energy working our SOI as we do SEO the ROI would for both would RISE.

As far as the ROI for the WEB & SEO that will become harder to achieve for 90% of the SITES as only the top in SERP will see the ROI exceed their investment as it becomes more & more competitive .

With all things being equal between homes in a neighborhood what is the single most important reason some sell faster then others ~ apply the same reasoning to our businesses.

Good Blog and subject!

Pinehurst Real Estate

Dec 01, 2007 03:24 AM

Marsha Benya

Century 21 New Millennium - La Plata, MD

Tim- You're right on the money about a good telemarketing team. One of the reasons that I did not mention incubation or SOI in the blog is because I was focusing on problems/changes that need to be made in my goals and strategies. The system I have in place right now for my SOI has been working very well for my group. I am very hesitant to make any changes in that regard simply because I am happy with the ROI on that aspect of my business.

Don- Perhaps I should have been more specific when speaking in regards to the "get-it-now" mentality. It is a generational thing in many respects, and I should not have made such a blanketed statement. However, I did change my Farm Mailers this year to be less verbose, more colorful, and straight to the point. I found them to be less informative, but I was surprised to see a 6.3% increase in response to mailers I felt were less informative and explanatory.

It was harder for clients to really identify what it was that we were doing for them, and now evidence and validation of our time and effort, or lack thereof, is very easy to find. I have found that younger clients are more cautious about selecting a Realtor, and they are looking for a cutting edge Realtor that appeals to their sensibilities.

When I'm working with seniors, I do find that they are less interested in online marketing due to a lack of understanding, and they have often found me through either referral or my print advertising. I actually see more calls on print advertising from older individuals looking to list their own home with me than I do from prospective buyers. It all depends on the age demographic you are trying to appeal to.

I think websites such as HomeGain, HouseHunt, House.com, etc. are more interested in convincing us to spend than trying to find leads. I agree that the increase in minor players is an awful drain on our individual resources. As I mentioned, I do work with one group that I have found to be useful, but my ROI with them is not as good as my ROI on my Farm, Mailers, SOI, or Website. I treat it as a supplemental part of my business, not a primary one.

You make an excellent point about time on SEO vs. time on SOI. I firmly believe your SOI should still be your primary focus.

Dec 01, 2007 03:46 AM

Don Price

Mid Carolina Realty LLC - Pinehurst, NC

hehehe

I just noticed where you're at ~ my daughter and her husband bought a house from your firm a few years back.

An agent from your firm (California office location I think) was the her buyers agent and really did a poor job for them and got them into a mess. I think the agent left your firm soon afterwards and went to work for the firm and the agent that had that house listed.

I went up there and helped them make the repairs needed and sell it a year or so later and get into another home which I didn't see as a good deal, but it was their choice. The important thing was they got out of that first home and deal.

At the time I nearly came in to meet with the BIC there and really wanted to ~ but it wasn't my fight and the son-in-law took it as a very expensive educational event.

Both are Aerospace engineers at the Navy Base, and speaking of SOI, do you realize what a tight-nit group those engineers are and how they influence each other and there peers on who to use to buy & sell with. They learned to listen and become part of that network and for you in particular that is a group I would do everything possible to please.

I know you had nothing to do with their problems but I was just thinking of what a small world it is.

If you work the area by the Base and California area let me know.

As to your post on what works and what doesn't - be genuine and take time to get involved in as many charitable activities as possible and encourage your team members to do the same. Working a SOI with the power of 3 will produce results. Just make sure your charitable activities are ones you believe in heart & soul.

Even if you go broke ~ at least you've made a difference! :)

Good Luck

Dec 01, 2007 04:14 AM

Marsha Benya

Century 21 New Millennium - La Plata, MD

Don- Wow- VERY small world indeed! I'm sorry to hear about your daughter and son-in-law's debacle! We do have a branch office there in California/Lexington Park, as well as another one in Dunkirk in addition to my branch in La Plata.

New Millennium is currently the largest C21 in the mid-atlantic region, with 12 locations in total. Mary-Lynn Stone is the BIC for all of our Maryland offices, and I regard her as a phenomenal woman who has always been very good at making sure that clients are well cared for. It's a shame to hear that they got anything short of stellar service.

I had no idea that the engineers there are as tightly-knit as you say, but I think it's wonderful that they are as supportive of each other as they sound. It can be hard to find that in any industry, I will be sure to keep that in mind!

I do cover the area around the Pax River Base, as well as Andrews AFB, Dahlgren NSWC, and Indian Head NSWC(Phew, we have a lot of military installations!).

You're right on the money about charitable organizations- I'm very proud of the volunteer work I do, and I am very fortunate that my team members are very active in charitable and volunteer work(My two team members also happen to be my sons, so Momma's made it clear to them growing up how important charity work is). We all spend hundreds of hours each year trying to contribute to the community and we've found avenues to contribute that we are genuinely passionate about.

Dec 01, 2007 05:08 AM