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Is there really any point to having a marketing plan?

By
Real Estate Broker/Owner with Highland Realty, Inc 0225 099336

Is there really any point to having a marketing plan?

Having been around this see-saw industry for just a few years less than blogger extraordinaire, Lenn Harley, I have seen more failed attempts at developing a meaningful, achievable and profitable plan than not. New and experienced agents, with the encouragement of their broker, start each year with a laundry list of all the proactive steps, mailings, networking ideas, calls, web sites, lead generation contracts, farming and the myriad of other ways to generate business. Plan lengths I have seen have varied from one page, to, literally, more than 75 pages.

Too often, however, well-intentioned brokers and agents get so caught up in developing the plan and systems to implement, that they lose sight of what is most important – doing the actual business of real estate – working with buyers and sellers. In their technologically sophisticated, erudite projections, they move away from the basics, immerse themselves in tracking all the required plan steps, input hundreds and thousands of data items in expensive industry software and, oftentimes, just barely make ends meet - if they do meet - after staff, marketing and overhead expenses are factored in.

There are many reasons that more than 90% of the agents leave this business every four or five years, but mostly, it’s because they have more expenses than clients. It really is true that if you fail to plan, you plan to fail, but – there is a balance. Yes, you have to have a plan and, just as important, a budget that you will stick to. I will never forget a conversation I had with a high income earner and successful agent back in 1990. Every January, he would take his wife to their favorite restaurant to celebrate his success for the previous year. After dessert, he would pull out a small notepad and write down three things: the amount of money he wanted to earn, the number listings he needed to take and, the number of buyers he wanted to work with over the next year. Those were his goals.

He then took a second sheet of paper and wrote down the steps he would take – every day – to meet his goals. That was his business plan. To this day, he continues to average between $175,000 to $200,000 per year, has one part-time assistant to do the paperwork, no expensive software (just uses Excel to track his business and expenses), no buyer/seller lead generation contracts, no team or other significant overhead expenses and, is very content with his business and income generated.

There are truly as many different ways to do this business as there are Realtors. You have to decide what the nature of your business will be and what level of consistent daily effort you are willing to put into it to succeed. So, do you really need to have a marketing plan? I think if you have measureable goals, a budget, personal discipline and a commitment to consistently apply yourself daily - in prospecting and providing quality service - the rest will follow.

What do you do best that helps you to succeed? If you have a marketing plan, what are the three most important elements? What is the best advice you could give someone just starting the business?

 

Dave Rosenmarkle

Broker Owner

Highland Realty

Arlington, VA

703-538-2566

www.HighlandAgents.com

davidrose@mris.com

Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Dave, lots of good points, I start everyday with a plan and end everyday with the next days plan in tact with very few exceptions. I find making a plan before leaving the office and reviewing it right before bed really works.

Jan 20, 2009 10:52 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

A good business plan is essential, along with written goals.  How are you gonna do it!  "Failing to plan is planning to fail," and there's some truth to that.

Jan 20, 2009 11:10 AM
Jessica Wallace
Coldwell Banker - Santa Cruz - Santa Cruz, CA
Santa Cruz Realtor (831) 419-9345

"If you don't know where you are going you are never going to get there"  I agree that goal setting is vital.  Complicated marketing plans can overwhelm.  Keep it simple and Talk to people everyday, maintain your client base and network.

Jan 20, 2009 11:27 AM
Anonymous
Tom McClaren

Dave,

Good article - thanks!  What a great reminder about the need to have a plan, yes, but to keep it simple.  In this economy and market what better words of wisdom.  If you have a great plan yet fail to work with the people (buyers and sellers) who can make it happen what good it is?!   

Jan 20, 2009 11:28 AM
#25
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

Dave,

thanks for letting the secret out.  I don't believe in the 75 page marketing plan.

Jan 20, 2009 11:51 AM
Dawn Helena Anderson
Coldwell Banker - Quality Properties - Porter Ranch, CA
Realtor Since 1998

Here is part of my plan since you were so thoughtful to share.

Find 5 things that you can focus on and be consistent, such as:

  1. Expired Listings
  2. Open Houses
  3. Door Knocking
  4. Contacting Sphere of Influence
  5. Hand out a minimum of 20 Business Cards a day  (I've actually obtained several clients pumping gas)

Keeping it simple and not too many ideas will keep you more focused when you start getting busy. 

Happy Prospecting!

 

 

 

Jan 20, 2009 11:56 AM
Jeff R. Geoghan
Coldwell Banker Realty - Lancaster, PA
REALTOR, Marketing Manager

I hate planning.  That's just the way it is.  I'm a dreamer.  It's hopeless...

Jan 20, 2009 12:21 PM
Kevin Comerford
Coldwell Banker Preferred - Media, PA

Great post Dave, keeping it simple is really easier. I would have written all of the focus points that Dawn listed above as my advice and I would advise the new agent to lead with revenue as Jim said and then work backwards from the, divide revenue dollars into listings and sales units sold, from there you could figure out how many contacts you need to made each week in each of Dawn's categories. There is the action required, but the consistency is what will make or break the goal. I'm using a simple plan that assigns a point value to these activities and know how many points per day and per week I need to get to where I want, when I win, I reward myself, when it looks like I may fall short, I stay late or get up early or work the weekend, whatever it takes. The challenge in this is that the smarter you work, the faster you get to the goal, the reward, the free time, etc. There is a great book called Getting Things Done by David Allen that really simplifies all of the things we have to do and the system I'm using is based on it and available free online at The Printable CEO . I plan to post about it soon, it's on The List.

 

Jan 20, 2009 12:31 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Isn't there a difference too between the marketing plan and the business plan? Business plans should be simple and straightforward. I like having a marketing plan at the start of a new listing that takes me through 2 months of marketing - and keeps bringing up new ideas.

Jan 20, 2009 01:40 PM
Kerry Lucasse
eXp Realty - Urban Nest Real Estate Group - Atlanta, GA
Your Urban Nest Atlanta Real Estate Consultant

Great post!  For the first few years that I was in real estate, I had the elaborate plan that was about 15 pages long.... and just like a New Years Resolution, the "plan" is sometimes in the trash bin by March.  My new strategy is simple -- I'm focusing on what I need to NET monthly and I know how many buyer leads and listing appointments I need to achieve that goal.  Of course, I have a marketing budget, etc, but just keeping my eye on the price at all times is really working.  I'm motivated, I'm happy and business is pretty good!

Jan 20, 2009 02:01 PM
Richard Goates
Apex California Realty - Redding, CA
Broker 01251781

Great post and great comments...thanks everyone! Back to the basics with a little tech thrown it....

 

Regards

 

Rick

Jan 20, 2009 02:30 PM
Toby Boyce
C.G. Boyce Real Estate Co. - Delaware, OH
MBA, Delaware Ohio

What do you do best that helps you to succeed? Focus on my "big rocks" and try to keep my experience on an even keel.

If you have a marketing plan, what are the three most important elements? (1) Accountability (2) Organization (3) Budget

What is the best advice you could give someone just starting the business? You are going to be the owner of a multi-million dollar business, act like it. Be prepared and plan ahead.

Jan 20, 2009 02:34 PM
Anonymous
Anonymous

Great post the responses should help a lot of new agents undersatnd what it takes to be a successful agent.

Laura,

Jan 20, 2009 04:10 PM
#34
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Here's my 3 most important things, as you asked:

1. An achievable goal.

2. A realistic action plan to reach it.

3. Willing to be flexible when needed.

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown

Jan 20, 2009 06:58 PM
Kris Kombrink ~ The Kombrink Team
RE/MAX Excels - Chicago's Western Suburbs - Geneva, IL

Dave, while I agree that it's important for an agent not to get caught up in the minutia, a marketing plan IS a must.  You need to know HOW you are going to reach those goals and what it will COST.

twitter

Jan 21, 2009 01:49 AM
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

... follow through and accountability are so key.  And without a coach or mentor to keep you on track it is easy for many to just abandon business plans, kinda like they do for new years resolutions.

Great points Dave. All the best.

Cheers !

Sheldon

Jan 21, 2009 01:58 AM
Susan Sawyer
Keller Williams Chervenic Realty - Hudson, OH
Real Estate Expert - Hudson Ohio

Business plans are a very important part of goal planning. Set up your yearly goals. Then determine how you are going to accomplish those goals, by breaking them down into daily and weekly goals. Then follow through.  You don't have to have a 75 page plan. A simple one can do especially if you are just starting out. If you are going to pay for lead generation programs, you need to make sure that your money is being well spent and that you are making more money than what you are spending. Keeping track of what you are doing and what is successful for you can be one of your goals in your marketing plan.

Jan 21, 2009 02:49 AM
Debbie DiFonzo
Debbie DiFonzo - United Country VIP Realty, SW Missouri - Lebanon, MO
Lebanon MO and Buffalo Missouri Real Estate

Dave - Very well said. For me, it goes back to KISS - agents and brokers tend not to keep their business plan SIMPLE! Lenn also sums it up well - it all starts with going to work every day. Really doesn't get any more simple than that.

Jan 21, 2009 03:08 AM
Anonymous
leslie heimer

very insightful!

Jan 21, 2009 07:47 AM
#40
Diane Donnelly
Keller Williams Flagship - Annapolis, MD
Anne Arundel County, MD Real Estate

Hi Dave.  I just sat down and revisited my lame marketing plan.  I felt like I appeased the broker and wrote it up.  Now being somewhat responsible for two buyers agents, I felt an obligation to being able to quanify what worked, what didn't and why.  Without a focus on my plan, I wouldn't be able to guide and lead.  That's a poor combination for a rainmaker.  It's important to create the plan and keep your lifestyle, strengths and areas for improvement as considerations for the execution!

Thanks!

Diane Donnelly Keller Williams Annapolis

Mar 31, 2009 03:03 PM