Listings are the name of the real estate game. The more inventory on the shelves, the more frequently the commission checks flow. That’s what we do this for, isn’t it? It’s not because we love to work with people, or we love to view homes. New agents will soon be conditioned to the fact that when it comes to dealing with people; their money; and their home equity, there is nothing to love. It’s business. It’s sticks and bricks, and it’s finding that shortest distance to the closing table. That’s reality.
None of what you just read is what you wanted to think about, but it’s all true. This is business, and we need to think like people who are running a business. Finding fresh new inventory is a numbers game. If one is thinking about increasing his/her business to compete with listing agents who are “heavy hitters,” the goal is to market to the masses.
The risk is great, when one spends many thousands of dollars to find those listings. Direct mail marketing is not for every real estate agent, and the cost of direct mail marketing creates the negative attitude by most agents. They’re absolutely right!! The smaller the target area, the less likely to have a response. Those who have a budget to handle 1,000-2,000 would be wise to hit that same target every month.
People forget real estate agents faster than the speed of a Veyron Super Sport. Hitting a home 5 or 6 times does not work. One needs to be consistent with mailing and that means every month. Once the business starts flowing and the “for sale signs” are present throughout the town, along with other marketing sources, one can make adjustments. This takes years of marketing. The risk is great. The pockets need to be deep enough to handle it.
If direct mail marketing pays for itself, it’s a win and that happens in a "level market" in my experience. The profit comes from other residual business. Every listing that’s marketed will produce more listings; buyers will call on those listing; and business multiplies. In a strong market, the commissions flow heavily with profit on the direct mail plus the residual business. One needs to watch the market carefully. When the market tanks, my direct mail marketing is on a “skeletal program,” but it still exists. Other agents who dabble will stop completely long before the bottom is hit.
I use direct mail marketing now to target land and create future subdivisions. Direct mail marketing is the ideal method for target marketing, and I use it to its fullest extent. For those who can handle the risk, it’s a great method of marketing. It’s not a method to test!!! It’s a method that requires commitment!!!
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