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Have you ever had or witnessed a marketing idea go bad?

By
Real Estate Agent with Fathom Realty Washington LLC

When great marketing ideas turn bad!

 What's a boy to do when on floor duty and the phone hasn't rung all day. I was cleaning my desk when I found an old state licensing violations report.  This is always good reading and a scare factor to keep us on the straight and narrow.  I've kept this copy due to the fact I knew the agent involved and the agent who had turned the other agent in to the state.

The agent in question, felt that day condominium complex was her dedicated farming area.  This woman agent and her brother, an agent with another company, had produced a very tasteful color mailer prospecting for real estate referrals.  An agent in our office, a resident in said condos, brought in the mailer and show those what it contained.  I will give 5 crisp $100 bills for your referral! There was nothing wrong with a referral request however making color copies of $100 bills (two sided) at the time could be seen as a felony.

The agent and her brother received a $500 fine and the evidence was turned over to the Secret Service and they were facing further prosecution. (Counterfeiting) I am sure it did not go too much further.  She's still in business.

From time to time I come up with great marketing ideas and I always remember this case as a benchmark for crossing the line between creative and illegal.

Have you ever had or witnessed a marketing idea go bad?

 

This post was authored and photo taken by Paul Henderson. ©2013, All Rights Reserved, This content may not be reproduced or reprinted (Except for ActiveRain Re-blogging) without express written permission of Paul HendersonRE/MAX Professionals, Tacoma, WA.

Clip Art provided by Microsoft!

Posted by

 and courtesy of 

Paul S. Henderson, Residential Real Estate Broker 

Tacoma Washington 

Realtor ® BPOR, CRS, GRI, CDPE

Fathom Realty WA LLC

Serving

South Puget Sound in Washington State

 

 

 

 

Paul's Service Area


 

 

As a Residential Broker and Relocation Specialist, I sell homes in or around ,Tacoma, Gig Harbor, Lakewood, Steilacoom,  University Place, DuPont and Hartstene Pointe in Washington State.
Please visit my website at http://www.hartstenepointe.com to search for information 

(all information is believed to be accurate but is not guaranteed or warranted in any way)

Referrals are always welcomed and appreciated, Thank-you!

(As a member of the NWMLS, this blog post is intended to comply with NWMLS rules as pertaining to blogging.)

isspfmtysmily

iaa

 

Comments(41)

Ron Aguilar
Gateway Mortgage Group - Saint George, UT
Mortgage & Real Estate Advisor since 1995

interesting

May 01, 2013 11:41 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Can't say I have one as brilliant as the one you mentioned in your post. As others have said, I came across someone who I am sure got pulled in with the feds on investor fraud but is still in business. First thing I said to myself was 'thought you were in jail dude'? 

Not enough people get brought up because it just takes time out of your own selling strategy.

May 02, 2013 12:19 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

This wasn't legal in Washington State either at the time. No one outside the transaction could receive compensation that wasn't a licensed agent.

May 02, 2013 12:36 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Maybe I'm just oblivious to it... but I can't say I've seen a lot of marketing out there that skirts legality. Some of it is just in bad taste or not very professional... but getting into trouble with the Feds, not so much.

May 02, 2013 12:37 AM
John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Anyone who uses a negotiable instrument for their advertising ought to do some homework first!

May 02, 2013 12:43 AM
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Irvine Realtor®

I created a lead generating website for an Agent that's a neighbor, and taught her how to use it.  I told her she needs to check it for leads everyday, or else it'd be worthless.  She agreed, and the following Monday morning I saw her walking her farm with flyers.  I looked at her website and she had 8 leads from people wanting to see homes, and the first one arrived Friday night.  I couldn't believe it ... she had people waiting in line, yet she was walking door to door with flyers.

Sometimes a good marketing idea can look like a bad marketing idea when it's not implemented properly.  I've heard lot of Agents say they've tried marketing with websites on the internet, and it didn't work, so that's a bad idea.  I'll bet those Agents never really took the time to try to make it work ... the time they should have been investing in understanding how to make a lead generating website was spent walking around their farms with flyers instead.

May 02, 2013 01:14 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I guess.. .I have to take a second look at my Free Massage for a referral deal I'm working now at a local sorority house

LOL

 

I must have thousands of BAD marketing ideas and continue to  this day. .. the key thing is to keep trying!

 

May 02, 2013 01:24 AM
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

Uhm, I'm seriously surprised that anyone thinks copying money is ok. That has never been ok, and it has always involved the secret service. Hello.

May 02, 2013 01:44 AM
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

I once received a $50 Ulysses Grant by mail with a business card from an insurance agent with a 'thank you' note after closing a deal where my buyer bought insurance from this agent.  I actually had nothing to do with the selection of agent as the buyer's daughter already had homeowner insurance from that agent and referred her mother to him.

It really turned my stomach.

May 02, 2013 02:21 AM
Tom Esposito
Alpharetta Home Solutions - Alpharetta, GA

Good post.  Some of the best marketing ideas are those that are outside the proverbial box.  Something no one else has thought of.  But you need to make sure it's legal and in good taste.  Use your creative juices but also use your brain. 

May 02, 2013 03:33 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Well in California you are limited to $300.00 on something like that.  Perhaps some commercial made play money or something else that conveyed the same idea.

May 02, 2013 03:43 AM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I don't know your state laws, but it seems there are two violations there - one is offering money to an unlicensed agent and the second is copying money.  I haven't done a whole lot of marketing so haven't had any trouble with bad ideas up to this point anyway...-Kasey

May 02, 2013 04:37 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Paul reminds us of a broker whose "business" card was a $10,000 bill - but not actual size.

May 02, 2013 05:46 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I think this law is a bit overboard - anyone can tell the difference between a picture of money and the real thing. However, here in Idaho it is (or at least was, when I was an agent) illegal to offer a referral fee to an unlicensed person.

It's always a good idea to think first - and to consider the "unintended consequences" of your actions.

May 02, 2013 07:37 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I can't speak for other states, but in Florida paying a referral fee to unlicensed people is a 3rd degree felony.  A very serious crime.  The counterfeiting accusation just sounds stupid to me.

May 02, 2013 07:53 AM
Annett T. Block
NextHome Connect Realty - Fort Lauderdale, FL
Your NextHome in Fort Lauderdale Beach

The first what comes in my mind was how can a licensed professional in real estate pay a non licensed condo owner a cash referral fee? A big no. no in Florida!

On copying dollar bills or any currency that would fall under my category in common sense under a counterfeit money.

Sometimes everybody should read the fine print even on the dollar bills!

They are really lucky that they still have their license.

May 02, 2013 08:49 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Some interesting comments about this post yet any marketing idea gone bad by others would probably never be reported or even acknowledged, don't you think?

May 02, 2013 09:52 AM
Jim Warkentin
Keller Williams Realty - McLean, VA

After the fact, all you can say is "It seemed like a good idea at the time."

May 02, 2013 10:05 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

In California they'd be fined for paying such a large referral fee to a non-agent.

May 05, 2013 05:20 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

In Oregon, all advertising needs to be approved by your Supervising Broker (Principal Broker). Flyers, websites, postcards, etc. This would have never been approved.

May 17, 2013 01:47 PM