Rita Burke posted a great blog the other day about being at a garage sale...and overhearing a conversation between a woman and the homeowner. The woman turned out to be a Realtor (Rita aptly named her "Connie Clueless"), as it quickly became evident that "Connie" wasn't very polished, didn't know the local market at all, and well...also didn't have the greatest people skills.
I hope Rita doesn't mind me using the "Connie Clueless" character here, but I wanted to post the comments I left on her blog...as its own blog here. The reason?? Most of the discussion at Rita's blog were commentaries regarding the lack of professionalism, or the low standards of entry into becoming a Realtor.
While I agree with that...I took a slightly different approach, and I hope some of you find it interesting food for thought. By the way, it turns out that Connie wasn't really attempting to sell the homeowner on her services (thankfully!)...however it nonetheless gives us something to think about.
My response over there was this (some areas have been slightly revised for purposes of this blog):
Rita...very interesting blog!!
From my vantage point...Connie was at least out "doorknocking" a little. She wasn't very good at it, but she was at least trying. (She'll get better at it over time). Soooooo many Realtors have given up on any sort of marketing (other than perhaps their website)...that even in my own neighborhood, I haven't received ANYTHING from ANY Realtor in over a year!!!
Nothing. Zip. Nada!!!!!!
No printed materials at all. No personal contact. No phone calls. Not one single postcard. Not one newsletter. Not one brochure. The Realtors in my community ought to be ashamed of themselves!! They may know their business well...but they sure aren't business people. Heck, even the local pizza-joint owner knows he needs to advertise to generate business (and he does). And even though he's a small independent...he does an absolutely incredible business. He also sells pizzas for $7.99.
But Realtors who have the potential of earning a heckuva lot more than $7.99 per sale don't do any marketing at all??? That fact amazes (and baffles) me.
Perhaps the "Connies" of the world are out there at least trying to do "something" because they don't yet have a referral base to work off of...or they can't yet afford a pretty website and SEO optimization to compete in that particular arena.
So what does she do??
She goes to garage sales and rubs shoulders with the homeowner. She puts 10th generation copies of dayglow green flyers on windshields, and hand delivers refrigerator magnets to 100 people in her farm. Effective marketing?? Probably not in the broader sense of the term. But if no one else is doing ANYTHING...then Connie in a weird way deserves to get the business. And she will. Trust me. She will.
Should she be more experienced?? Have a more positive attitude?? Be more "market-savvy"?? Well, of course. But in the meantime...if she's the ONLY Realtor the neighborhood knows, she'll get business in spite of herself.
That's a shame...but it's not Connie's fault. Let's stop picking on her for her lack of skillsets. You can be the best, most experienced and most knowledgeable Realtor in town, but if you're hiding in a closet somewhere, sellers have no choice but to do business with Connie.
I'm often amazed at how many agents don't understand that concept. It's too simple. It's Business101, and it can make the difference between ultimate success...or ultimate failure.
If I met Connie...I'd simply say "You go girl!" She can work on honing her craft, learn some more effective people skills, and be more prepared...and when she does, you better watch out. She'll OWN your particular farm area!!
We expect consumers to explore the value propositions that we, as Realtors, bring to the table. Interview and seek out agents to determine who would best be able to represent them...but we don't even bother giving them a way to contact us????
That sounds like the beginning (or end) of a bad joke.
Dave
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Okay, so that was my response. A bit opinionated (you expected less??) LOL!! And probably even comes across as a bit self-serving, given that I own a national real estate marketing firm.
But here's the deal.
It doesn't matter whether you doorknock, or visit garage sales, or send postcards, or WHATEVER! What matters is that you're doing SOMETHING to let people know you exist! I read many comments on Rita's post where agents recommended wearing your name badge at all times. I agree with that. But that's PASSIVE marketing. Yes, I know it may start a conversation while in line at Starbucks, but that's not the kind of marketing I'm talking about.
I'm talking about proactively advertising YOUR business. Just like the florist, the tanning salon, the auto repair service, and the pizza joint.
Please don't get upset at this. It's just an observation. We specialize in real estate marketing, but it's not the ONLY marketing we do. After all...most of our customers have spouses or friends who are in OTHER businesses...and we're often recommended to them as a result. I've done marketing campaigns for hot air balloon companies, bookkeeping services, or private tutoring services that have far eclipsed what I've seen from my local real estate community. They're thriving businesses now too...and they don't make anywhere near the amount on a per sale basis that agents can. I just don't get it.
DO NOT BE COMPLACENT AND SIMPLY ALLOW THE ONLY MARKETING FOR YOUR REAL ESTATE BUSINESS TO BE WHAT YOUR BROKER IS DOING ON A COMPANY WIDE BASIS. That works for your broker...but all you'll get is the "trickle down" stuff.
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Here is one of the most important facts to keep in mind when developing your marketing gameplan:
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On average, ONLY 3% of the general public is "thinking real estate" at ANY given point in time.
That's it. THREE PERCENT!
And out of that three percent, one may already have their home listed....and one may have just closed escrow on the purchase of a new home. So now you're down to only 1%.
The math becomes quite easy.
If you send out 100 newsletters each month to your 'sphere', then the MOST return you can expect to get is 3%...or three prospects. And two might already be gone....so now you're down to one.
When I sold real estate, there wasn't a month that went by where I wasn't sending at least 1,000 pieces to my farm. 1,000 x 3% =30 prospects. If 20 already had their homes listed (or whatever), it still left 10 REAL PROSPECTS for me to work with!!
Even if I had another competitor in my farm who did a reasonable job at marketing (I didn't, by the way)...but if I did...and had to split the number in half...I'd still have 5 prospects all to myself!
What to send...and what NOT to send!
OMG...I just realized how long this blog is already. Sorry about that! If you're still here...THANK YOU! I'll try to wrap up my thoughts quickly.
I NEVER EVER sent Cherry Pie Recipe Postcards. I only sent things having to do with Real Estate. I'm NOT the community BAKER...I'm the community REAL ESTATE EXPERT!!! The pizza guy doesn't send newsletters about real estate. He's a pizza guy for crying out loud!
I NEVER EVER sent pens, notepads, refrigerator calendars, etc....as I'm not a big believer in PASSIVE marketing. You can prove to yourself how effective passive marketing is by asking yourself which title company left the last batch of styrofoam cups in your break room. Was it First American?? Stewart?? Chicago Title?? (No ones remembers).
What you send MUST BE REAL ESTATE RELATED....AND IT MUST BE PROACTIVE! In other words, you need to give those 30 people a REASON to call you right now. Someone's going to ask for an example, and although I have tons....I'll give you one easy one based on current events.
A postcard that reads: "How The New Appraisal Law That Went Into Effect May 1st Will Affect YOUR Home's Value!"
Compare that to a refrigerator magnet or Cherry Pie recipe postcard.
See what I mean??
Happy Selling!!!
Dave
P.S.
If you have an idea for a marketing campaign that you want to talk about, call me. Or heck...even if you DON'T have an idea, but NEED one...call me. We can discuss your goals...what kind of budget (doesn't matter how big or small, by the way.) But rest assured...we can help you take your first step toward building a better and more successful real estate business! That's our promise!
http://www.FlyersToYou.com/samples
http://www.FTYDomains.com
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Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Haha, all the Connies went out of biz when our market went down the toilet. I only got started in this market in 2005. As I was beginning to ramp up a farming campaign for my area (there were three others that were dedicated to farming at the time) - market tanks - all the farmers stop sewing their seeds.
So guess who is getting ready to ramp up, ummm hmmm the one that owns the internet farm in this area - me.
May 03, 2009 08:13 AM
Birmingham, AL
I like your take on this as well as what to send and what not to send when farming.
May 03, 2009 08:22 AM
The Choice Group - Olney, MD
Nothing beats good ol work. Pick up the phone, and get out and shake hands. If you cringe at the thought of both, you are in the wrong business. The majority of new agents dont make it in a 'normal' market. They do well initially, when their enthusiasm is high and they have one or two deals through family and friends... but now what?? How will this Agent get new business... most spend what they have on marketing and basically weed themselves out of the business even faster. If you're new, save the $ you make on those first couple so you have a future cushion to help ensure you can stay in the business if this is what you love. Spending $ on marketing should happen as a supplement to the basics you should be executing; making x # of phone calls everyday, and shaking x # of hands every day. It takes many years to build a solid client base and to become known as the go-to expert in your area.
May 03, 2009 08:26 AM
Surterre Properties - Laguna Niguel, CA
Its a fun to read factual representation of the market today and the way Realtors crawl into a hole at the most challenging times.
May 03, 2009 08:28 AM
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA
Renee!!
Good for you!! I love reading that kind of stuff!! Just make sure your web address is on EVERYTHING they see! I'm sure you already do that! But here's an example (especially if you have a great website).
We do bookmarks (yes, bookmarks)...that some agents are using to promote their websites and/or blogs. For 1,000 bookmarks (full-color, 2-sided, extreme gloss, thick cardstock)...the cost is only $99.00/1,000 to print.
Here's an example:
It's been 8 years since I last sold real estate....so the internet wasn't quite what it is today. If I were selling today...I'd make sure everyone had these! I see agents spending fortunes on SEO, when it's really so simple to just drive people directly TO your site!!! Why expose them to 100,000 other agents in a Google Search if you don't have to???? LOL!!
I'm placing my bet if anyone wants to gamble with me.
Odds are that Renee will have 90% of the business in her farm very soon (allowing the other 10% for friends and relatives). So my bet is on her.
Any takers?? ::smile::
Thank you for commenting Renee! Go get 'em!
Dave
May 03, 2009 08:29 AM
Keller Williams Real Estate - Hawley, PA
Northeast PA & Lake Wallenpaupack Home Sales
Renee is lucky. There are plenty of Connie Clueless agents around here! ;)
The hard part really is coming up with something that is relevant and creates the sense of urgency. I like the idea of the appraisal law headline.
Do you have a link to the original blog by Rita?
May 03, 2009 08:39 AM
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA
Whoops...just responded to the first Renee's post and discovered the other comments!!
Renee Norton,
Thank you for taking the time to read through all of that!! And thank you for the comments!!
Choice Real Estate,
I sorta' agree...and sorta's don't. There's certainly nothing like personal contact, that we're in complete agreement with. But THAT should be the supplement!
When I first got in the business, my broker suggested I "walk my farm", which I did. Woke up early, got dressed, drove to my farm area, parked the car, grabbed a stack of business cards, and off I went.
It was 105 degrees outside (June in Southern California).
I must have knocked on 25 doors, made about 5 decent (i.e. friendly) contacts...but none of them needed me at that time. And I was drenched in sweat. I started worrying whether my dry cleaners could remove the stains forming in my armpits....and called it a day.
I did that routine for about 3 months. Even got a listing out of it.
And then I realized..."David, what are you doing?" For one-third the cost of that one suit, I could send out 1,000 postcards (no, not the canary yellow thin paper junky postcards)....but professional, high quality, real estate related postcards...and probably get more response than hand-walking my farm.
So I tried it. And it worked.
I got two listings and one sale from the first mailing alone.
And I never looked back.
BUT...the truth remains (and you bring up a good point)....that ANY contact is certainly worth a heck of a lot more than none at all!!!
Thanks for taking the time to read and share your views! Much appreciated!
Michael,
I agree. I know times are tough for everyone. What that means, though, is NOT to stop building your business!! if anything, it means do it now more than ever!! Just be careful how mcuh you spend, and PLEASE be sure you're not imprinting your name on golf tees, know what I mean??? Make sure what you're doing will net results. It'll make next month's marketing expenses pay for themself!
Thanks for commenting!
Dave
May 03, 2009 08:43 AM
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA
Hi Karen!
I wish there was time, or space enough to discuss these here (another blog perhaps?)...but two of my most effective postcards were:
"Find out how much YOUR home can sell for....in less than one hour!!"
There was a lot more to it than what you think...but that was the catch-phrase.
The other one (probably my MOST effective!!):
"David Daniels Announces Another Real Estate Transaction In YOUR Neighborhood!!"
This one seems very obvious, but trust me...it's not! It'd be too complicated to go into without doing an entire blog about it, but it's definitely NOT what you think it is! Those went out weekly to sections of my farm...and the end result was that you could walk up to ANY house in a 1,000 home farm area, and ask if they could recommend a Realtor? Their answer was always...and fortunately...
Lil ole me.
You should call me sometime....I'll tell ya all about it (and I don't bite either!) LOL!
Dave
Oops....here's the link to the original blog that Rita posted:
http://activerain.com/blogsview/1058187/I-sell-real-estate-but-I-really-dont-know-real-estate-well-shouldnt-you
May 03, 2009 08:51 AM
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Associate Real Estate Broker
I remember one of my engineering instructors in college relating the story of Boeing having structural problems with some of their airplane components. Almost all of the engineers working on the project were mechanical engineers. Boeing brought in a crew of civil engineers (bridge builders). The ME's started to laugh at the perceived lack of ability the CE's were displaying until they solved the problem.
Sometimes it pays to step back and do a little thinking outside of the box. Sure, the new-be may have been inexperienced, but her ego wasn't so inflated that she wasn't afraid to look bad, and in the end, she just may end up with some business, just because she was able to relate on a more personal level and had no misconceptions about the 'right' way to get it done.
May 03, 2009 12:59 PM
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA
Ed,
What a great observation!! My son, by the way...is a structural engineer. If he has a roll of duct tape, he can fix ANYTHING!!
LOL!!
Your point is well made, well taken, and much appreciated! Thanks!
Dave
May 03, 2009 04:32 PM
Schaumburg, IL
Real Estate Broker Retired
I think that you just love messing around and throwing in an opposing view no matter how ridiculous. Connie was a looser, and yes MARGINALLY she was prospecting. If talking is prospecting at a garage sale. That is truly stretching it to the 'nth' degree.
May 04, 2009 09:45 AM
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!
Dave-have you heard the story about the immigrant who owned a hot dog stand? He had signs everywhere, coming into town, directional, going out of town saying you just missed him, everything everywhere. He raised his kids selling hot dogs, and even sent his oldest to college to study business management. One semester his son came home and said-gee Dad, don't you know business is bad? You'd better stop advertising so much! His son was a BM student so he figured he knew what he was talking about. He pulled some of his signs. Business got slower. His son said, you'd better pull back some more Pops, you can't afford to do all that anymore. So again he pulled back. This went on every semester break, pulling more advertising dollars until the son graduated and Dad went out of business. He had quit advertising. At the end he said, Isn't my Son Smart? He saved me alot of money!
May 04, 2009 11:52 AM
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA
Hi Lyn!
LOL...well, you're right about one thing! I DEFINITELY love stirring up the pot a little!! But I hope you didn't think I was actually PROMOTING hob-knobbing at garage sales as a recommended real estate prospecting method! I wasn't at all.
Rita's blog centered around her having listened in on a conversation between a homeowner and "Connie Clueless" AT A GARAGE SALE...so I just kinda took off with the idea. It also turned out that Connie wasn't actually prospecting at the garage sale, although Rita THOUGHT she was initially.
So I thought I'd have fun with it a little.
My point, however, absolutely remains.
If Connie actually WERE to visit 10 garage sales every Saturday....and 10 more every Sunday, I 100% GUARANTEE that people would know her name MORE than an agent who does absolutely nothing.
I think that's irrefutable, isn't it??
That's what I hope was the point getting across to everyone. The fact that you have to do SOMETHING in order to get your name out...and it shouldn't be limited to passive marketing tools. It MUST be proactive in order to be effective! And even though the whole garage sale thing is now somewhat "tongue-in-cheek", I actually believe that visiting 20 garage sales and introducing yourself, and asking about the neighborhood, and meeting other garage-sale goers....would be MUCH more effective than mailing refrigerator magnets to 100 people in your sphere every two years.
P.S. I'll respond to your email shortly, ok???
Lyn, thanks for commenting!! :)
Evelyn,
I LOVE that story!!! It's so true! Here's a similar story that's happening right now....that I'm personally watching and impacted by.
My favorite little coffee haunt here in town is a small independent (aka not Starbucks). A bunch of us "old guys" meet there almost every day late in the afternoon to sip coffee drinks and solve the world's woes. Well...being the perpetual marketeer, I've had numerous discussions with the owners of the establishment regarding marketing...(and more importantly their LACK thereof).
They do none whatsoever. And haven't since taking over the business one year ago.
I know budgets can get tight...but as you eluded in your story above, budgets only get tighter when no new business is generated.
They could be developing a huge email list of customers...and offer specials each month/week to foster repeat business. It would cost nothing. But they won't do it. They could have a website to help promote their private label coffee beans to customers, and even to the out-of-towners who stop in during their visits at holidays (or whatever). Too much hassle to package and ship 1-lb. of coffee to only make $6.00. They could advertise in a MILLION different ways, but they don't.
As a result, here's what's currently taking place a year later (since they bought the establishment):
1.) Four days ago, they just posted a hand-written sign on the counter stating their apologies for not being able to accept credit or ATM charges. Turns out they lost their phone service (shut off)...so there's no way to approve the charges via their cash register software. In the last three days alone, I've probably watched 25 customers walk out empty handed as a result. I'm only there for about an hour and a half...and they're open 14 hours a day. Most credit card orders are in the $10.00-20.00 range, so let's see...
14 hours X 5 customers/hr. X $15.00 = $1,050 per day in lost sales?? Because you can't pay a $750.00 phone bill??? Incredible.
2.) They're constantly out of everything. Want to buy their Hazelnut something-or-other?? You can't. They're out of Hazelnut. Wanna get a bagel with cream cheese?? Sorry...no cream cheese. The list goes on. It's very hit or miss. If they have a good day, they replenish their supplies. If they don't, then you're stuck choosing from whatever they DO have.
3.) The lock on their bathroom door hasn't worked in about 2-1/2 months. They can't afford the $75.00 to have a locksmith come out to fix it. So another handwritten sign is taped to the door that says "Lock broken, please knock first."
They'll be out of business very soon, no doubt about it. What a shame. All of us have been going there for about 5 years. It's quaint...it's close to where I live...and the comraderie is hard to beat.
But they never believed in advertising, and they're not running their business well. How's the song go??? "Another one bites the dust."
I appreciate you sharing your story Evelyn! Thank you!
Dave
May 04, 2009 02:09 PM
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