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2 Things I Found to be a Total Waste of Money

By
Real Estate Agent with Berkshire Hathaway California Realty DRE #01492138

2 Things I Found to be a Total Waste of Money

2things that I found was a waste of money

 When I got into real estate 11 years ago, everyone in my office had an opinion of what to do to get leads and make money. But what I was told mainly was that you had to spend money to make money. Made sense so I started paying for advertising. Here are the areas that I spent a lot of money on below. 

 

 

Advertising in Magazines and Newspapers:

I started running ads in the local coupon magazine that comes in the mail with the nice glossy cover. I had to sign a year contract and for several areas the price was $200 per month. I thought it was worth it as I had one listing but found out later that it was a friend instead who reccomended me. So stupidly, I had just renewed for another year and not one call from the magazine the second year either. My broker at that time was a big fan of advertising in the local newspaper but I thought putting in $50-100 per ad several times a month did not pay off either. 

Pay-For Leads:

I am not going to mention who I advertised with but it was two major websites where buyers and sellers go to get information. I would get text messages in the middle of the night and they would ask about properties NOT on the market or wanting to see 5 rental properties early the next morning and I do not do rentals. The other big site I signed up with,  I got no calls whatsoever until two weeks before it was time to renew. When I told them I had not had one call, the following morning my phone started ringing, text messages and emails but not one lead was decent. My subscription was going to expire in a week and they called again to see how it was going. I knew they somehow not activated me until the last week. I paid lots of money for both of these companies and though others get leads from them, I got nothing. 

I also signed up at a major social media site and it was very costly but not any motivated buyers or sellers but instead just questions and a time line in the future.

In Summary, So now in 2015 I am going back the basics of hard work: calls, referrals, and several types of farming is the best way to get business. So my business has continued to expand but not by paying for leads or advertising in magazines/newspapers. If I want to spend money on advertising, I buy new business cards,  mail out postcards, and send holiday cards via snail mail plus social media is a good way to get your name out there. Meeting face to face and shaking hands is the way to make a good impression. People who like you will either remember your name or at least keep your card nearby.

2 things I found that were a waste of money

I do believe you need to spend money to make money but have to be select in how you do it. I am always tweaking my business procedures as one thing might work once and not again so in time you must re-evaluate your budget. Oh, did  I mention bus stop benches and calendars? That will be another post! But 2015 will be a year of wiser decisions and more personal contacts. I am getting off the internet part of the time and starting to use the phone more.

 

You want your phone to ring? Re-evaluate quarterly or at least semi-annually. Meet the people and connect with buyers and sellers. 

 

Thanks for Reading my Real Estate Blog.....

 

 

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Comments (20)

Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Kristin Hamilton CA Realtor

Thanks for your entry into MARCH CONTEST: WHAT HAVE YOU STOPPED DOING IN 2015?  I have heard many people this month say that they are discontinuing pay for leads.  You are right about spending money but where is more important.

Mar 31, 2015 11:23 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I have reached the same conclusion! I am going to quit my Zillow and Trulia addiction!

Mar 31, 2015 11:24 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I think a lot of us are swayed by other Realtors who only have good intentions for us when we are out.  I too paid for news paper articles and nothing ever came of it. Luckily I realized soon enough and did not spend a lot of my marketing money on it.

I do believe in phone calls it is just more personable. I do handwritten notes too and people really like that because no one gets notes in the mail anymore.

Mar 31, 2015 11:26 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Paying for leads is something I never got sucked into, but it's because I found Active Rain so early in my career.

Mar 31, 2015 12:13 PM
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hi Kristin, your new pursuit makes a lot of sense.  Agents appear to be losing patience with the disappointment of technology-based leads.  Best wishes and many successes!

Mar 31, 2015 01:24 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I agree with the pay for leads...But print ads bring in 60% of my business.

Mar 31, 2015 01:38 PM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

You dont know until you try and I commend you for trying it out and giving it a real chance. Do what works and it can be different for many

Mar 31, 2015 02:37 PM
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Kristin, you have confirmed what I have always suspected about these two types of lead production.  Never have and never will.

Mar 31, 2015 08:44 PM
Tracie Juhas Barrios
Watermark Realty - Mandeville, LA

Kristen Hamilton, Rrint advertising just doesn't pay off anymore. Ive tried Trulia and Zillow as well. They haven't paid off as well as Active Rain. I am somewhat new to this site and I've already received a qualified lead!! For FREE!!

 

Apr 01, 2015 02:33 AM
Chris Webb
Nova Home Loans - Tucson, AZ
Tucson's Social Media Expert

Pay for leads is something all agents struggle with. I sense a shift in the way lead development is going to look in the future. Local content will be a better source of leads then in years past, people who are entering the home buying stage of their life are not likely to respond well to the "call six times get 5 nos, then a yes" mindset. 

Apr 01, 2015 03:29 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Grant Schneider 

Like I mentioned about postcards and farming materials or new advertising supply of cards. I go through boxes of cards when I farm the neighborhoods a lot. I think it is important to meet the people and CONNECT. Plus I do get a lot of good exposure with ActiveRain.

 

Apr 02, 2015 01:27 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Lise Howe 

I think that is a great idea!

Apr 02, 2015 01:28 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Sussie Sutton 

I totally agree with your ideas. I just sent my Easter cards out Tuesday and Wednesday. People love to find letters in their mailbox that are not bills.

Apr 02, 2015 01:29 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Chris Ann Cleland 

Some people swear by the process and they are so good at selling over the phone. I have had to hang up on them as they just keep talking trying to get me to resign.

Apr 02, 2015 01:31 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Michael Dagner 

I am all into technology but think we have forgotten the personal touch to real estate.

Apr 02, 2015 01:32 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi William Feela 

I just put an ad in the Homes and Land magazine and then I got an offer but it was a driveby just before the ad came out. Good branding exposure anyway.

Apr 02, 2015 01:33 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi David Shamansky 

Sometimes it works and other times nothing. I am still flexible but truly love those calls from my listing signs the most when they want to list their home.

Apr 02, 2015 01:34 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Bruce Walter 

It was so frustrating when they called at the last week and then I started getting calls and text messages. Why would I get rent properties? And most that called were not in the MLS so I spent a lot of time looking for the addresses. It amazes me that people are up in the middle of the night texting about homes.

Apr 02, 2015 01:37 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Tracie Juhas Barrios 

I am so glad to hear that as I am an Ambassador for ActiveRain. We love success stories.

Apr 02, 2015 01:38 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Chris Webb 

Recently I went to a KW seminar put on by a successful KW agent that moved here from another area. He calls and says usually about every 10 calls he gets a listing. Not too bad of success rate. 

Apr 02, 2015 01:40 AM