Now that many are predicting popping bubbles and a mass-exodus of less experienced real estate agents from many markets, it's time to take a look in the mirror and evaluate yourself. Are you able to withstand slower times? I read recently that only 40% of ALL Real Estate agents have a webpage (even a free one offered by their broker!!!).
Considering that close to 80% of people are starting their home search online now, this tells me that many many agents aren't able to change and adapt with the times. Are you one of them? Are you going to be left in the dust, or will you adapt to a shrinking, changing market? - Kim
Strategies for a Shrinking Market
How Pepsi and Baking Soda can help you fight a slower real estate market
by Will Dylan
It seems that the more you read these days about the market for real estate, the more you hear the terms "cooling" or "shrinking". While nobody can be certain if or when some local markets will see a real slowdown, forward thinking real estate agents are now busy "shrink-proofing" their businesses - that is, trying to find ways to minimize the damage that could be caused to their personal incomes by shrinking real estate sales.
Changing Markets are Nothing New
Real estate agents are certainly not alone when it comes to dealing with the potential of a shrinking market. Some of the biggest, most popular brand name companies in the world have faced cooling or shrinking markets in their respective industries.
Guess what? They are still around, and in some cases, doing very well. These companies took a strategic approach to handling a slowing market, and the results have been impressive.
But what do Pepsi and Arm & Hammer have to do with your real estate business? Well, both are focused on selling something (a product or a service) to someone (a consumer or client) to make money (commissions). In some ways, what Pepsi or Arm & Hammer do for a living is no different than what you do.
So as you think about how to keep your personal income where you want it to be in the face of a cooling market, learn from the smart, simple strategies used by some very big companies.
Launching New Products/Services
Pepsi has always been the number two player in the cola market. Despite Pepsi's sharp marketing and Coke's disastrous flirtation with "New Coke" about twenty years ago, Pepsi eventually realized that they weren't going to surpass Coke in the cola wars.
Faced with the prospect that their market for cola sales was limited by their runner- up position, they did something radically different for a cola company. They stopped chasing just the cola business, and bought brands like Gatorade, Aquafina, Quaker, Walkers, Tropicana, and more. They kept their cola business going, but also started offering products in other markets, such as Quaker Oats, Aquafina bottled water, and so on.
The result was that Pepsi could offer a complete line of products to consumers, and didn't need to count on cola sales alone to make money. Coke, on the other hand, still counts on sodas alone for most their profits.
Applying the Pepsi strategy to your real estate business, think about what you sell right now. For many of you, 100% of your income comes from commissions earned on the purchase or sale of homes. If people start buying less of this service (i.e. in a slowing housing market) your personal income is certain to fall, since all of your revenues come from this one source.
Could you start diversifying your services? Here are just some examples of services related to real estate that you could start offering to provide additional sources of revenue for you.
Home Staging Services - It seems there are entire cable channels dedicated to the art of staging a home. The impression these shows have created for the public is that good staging has value, and helps homes to sell quicker, for a higher price.
Could you help clients stage their homes for sale? You could use the service as a free offer if a client lists with you (a sales promotion to drive listings) or you could charge a fee for the service (a revenue driver).
Advisory Services - An increasing number of clients are listing homes for sale by owner, to save on real estate commissions. The typical response of the real estate business has been to go after these listings, and attempt to convert frustrated homeowners into listing clients. This approach works in some cases.
What about an alternative approach? Clients who list on their own are bound to need some advice and guidance, but are clearly reluctant to pay the full commission associated with a listing to get it. So why not charge a consultation fee to advise these clients on an as needed basis? Since you are selling your knowledge, you wouldn't be restricted by geography, meaning a whole state could be your trade area for this type of service.
Education - There are thousands of new real estate agents out there, striving to get better at their craft. As an experienced agent, you could sell your time to consult to these agents. (You could handle these sessions out-of-market, meaning you wouldn't train your direct competitors!)
Entering New Markets
Believe it or not, baking soda used to be just for baking. As society changed and an increasing number of families moved to two incomes, there was less free time for at-home baking. Such a trend should have drastically cut sales of baking soda, right?
Arm & Hammer had other ideas. They started promoting the odor absorbing qualities of baking soda. Before you knew it there was a box in every refrigerator in the nation. When that market reached capacity, they started promoting the cleansing properties of baking soda, and you can now find it in such products as toothpaste and underarm deodorant.
The baking soda business recognized their primary client base was shrinking (stay-at-home parents/spouses who bake regularly), and started targeting new markets to drive growth. Same product, new customers. In this case, the new customers were people who valued cleanliness, either in their fridge, or in their smile.
If the market in your area is on the way down, what's on the way up? Where are your next customers going to come from?
The Baby Boom generation (often called "Boomers") are now in their 50's and 60's, a common stage in life where they might contemplate a move to a quieter community away from the city. Have you targeted this market with information about selling?
Alternatively, if you work in an area outside the city limits, have you worked with your local chamber of commerce to promote your town as a great place for people to relocate to when they are tired of living close to the city?
Is your area seeing an influx of new immigrants to the country? If so, you could target this community and increase your presence as a buyer's agent as more newcomers choose to move into the area.
Using Strategy to Build a Better Business
The market may slow down around you, and there's little you can do to prevent it. What you can do is control the key elements of your business strategy, like the products you offer and the markets you target.
You'll still be in the real estate business and you'll still be selling homes, but you may have a modified product lineup or new target markets to help you build a stronger business.
It might even be "shrink-proof".
*Always check regulations in your local area when considering new products or services.
About the Author: Will Dylan is a professional marketer with a major corporation, and author of "Marketing Like the Pros: Real Estate Edition," an audio presentation that puts corporate marketing strategies in the hands of local real estate agents to help them grow their business. His website is www.marketinglikethepros.com
Friday, June 30, 2006
Monday, June 26, 2006
Conveying to the Seller it takes to make the house show it's best
If you are not sure what to tell a person, here are a few tips and you can search "Real Estate showing tips" on the web to find many more. (excerpted from here)
1. Less is usually better than more, less pictures, less furniture, less on the walls, less on the counters and less on the floor.
2. Lighter is better than darker. Put bulbs in every fixture, the highest wattage recommended in darker rooms. Turn on all lights and open all curtains.
3. Freshen up paint. Shampoo rugs. Expose hardwood. Wash windows. Make bathroom fixtures and kitchen surfaces shine.
4. Place a few planters with fresh flowers near the entrance, mow the lawn, trim the edges, and in winter (in the north) keep it shoveled, salted, and/or sanded.
5. On the outside paint the most street visible areas. Stand in the street and look at the paint or siding, shudders, curtains, plants, grass, drive way, roof, chimney, etc.
6. Trust your instincts: If you think something should be done, generally you're right, do it!
1. Less is usually better than more, less pictures, less furniture, less on the walls, less on the counters and less on the floor.
2. Lighter is better than darker. Put bulbs in every fixture, the highest wattage recommended in darker rooms. Turn on all lights and open all curtains.
3. Freshen up paint. Shampoo rugs. Expose hardwood. Wash windows. Make bathroom fixtures and kitchen surfaces shine.
4. Place a few planters with fresh flowers near the entrance, mow the lawn, trim the edges, and in winter (in the north) keep it shoveled, salted, and/or sanded.
5. On the outside paint the most street visible areas. Stand in the street and look at the paint or siding, shudders, curtains, plants, grass, drive way, roof, chimney, etc.
6. Trust your instincts: If you think something should be done, generally you're right, do it!
Thursday, June 22, 2006
A Poorly Designed Site Is Costing You Customers
Mike Parker works for the SEO that Z57 has partnered with, to offer SEO to our clients. He is at the forefront of internet marketing and search engine optimization, and often has really good articles with tips about improving your website...the article below is a good example.
Online Marketing: A Poorly Designed Site Is Costing You Customers - Could Yours Need Updating?
Commentary by Mike Parker
It’s no secret that as things get a little tighter and everyone is looking to maximize results from every tool in their arsenals that the first tool real estate professionals should consider is their Web site.
“I have a good one!” is the prevalent opinion (Before saying that you have a good one, please remember that over 80% of all Americans rate themselves as “above average” drivers. Just as 80% of drivers can’t be “above average,” neither can 80% of real estate Web sites, either!). Are you getting any sales from your Web site? You should be, for the Internet is where people look for homes. If you are not, there might be some simple things you can do to change the situation.
Unfortunately, it is often the case that although the site may look pretty (or not), from a performance standpoint, well, it’s frequently a “handyman’s special.” We know this because the first thing we look at when someone contacts us is their Web site and the home page and title tags on that Web site. You would be surprised to know that we have commonly found situations where the site builder FORGOT to finish the title tag, making the site impossible to be found by the search engines. What is a “title tag?” Well, go to any site. Hit “view” on your horizontal navigation bar, then scroll down to “page source.” A window will open, showing you your title & meta tags, things you may not be familiar with or never thought it necessary to focus on.
You do need to focus on your title tag, however, for with a poor one, it is exponentially harder for you to be found when anyone goes looking for a neighborhood. Generally speaking, you don’t want your tag too long or too short but you DO want it to tie in to key words on your homepage and to the towns you truly service. As an example of how simple this fix can be, a new customer had “Central Pennsylvania Homes for Sale” as his title tag with his business in Harrisburg.
That just isn’t going to do it, because generally, folks search by town or region; e.g., “luxury homes Salem Oregon” or “homes near lake Winnipesaukee” and the like. And that’s a good thing; just search for the name of your city and state and the words “real estate” or “homes for sale” and see what the engine says the search depth is (Use Yahoo or MSN for most reliable link totals). You see, in search, it is all about pertinence. Your title tag should be pertinent to your selling area. “Central Pennsylvania” is not really pertinent to any one of the hundreds of towns and cities in that region, hence performance for that phrase won’t be outstanding. “Harrisburg homes for sale” IS pertinent to a Realtor in Harrisburg, and it is a simple thing to have your tag changed to one that is pertinent .
Then, there’s the “Pictures, pictures, pictures” home page. It’s pretty, but it isn’t effective in positioning you because search engines can’t read pictures: they read text and content. Or, the “I’ve got more links than anyone in the world, right here” home page.
Unfortunately, that confuses the engines, too. Not to mention your prospects. You’d be amazed how many otherwise smart real estate people have links that lead off their page to another site and never return to THEIR site! That’s not good. If these things describe your Web site, sometimes it’s just better to put a clean new page up on the site you have had for a few years. You keep the same URL but you put a clean and focused home page up for the search engines to more easily find.
Last in this line of what makes sites hard to find is the “Mothership” site. A customer told me she was paying a well known association over $800 a month for a site that never brought her one lead.
This is what can happen when you choose the monolith or “mothership site” over having your own site: Oftentimes, no one can find you on such sites, so no one comes to you to purchase a home from all your Internet work.
Don’t have your “Internet Marketing” program consist of a page buried on a “mothersite” that Houdini couldn’t find amidst 10 billion pages of content on the Internet today.
Many more sites would work better if these simple cautions were considered or evaluated. Many more buyers would better connect with sellers. Many more real estate professionals would make more money and more sales. Check your site: 1) title tag well done? 2) too many links and pictures? 3) Is your site harder to find than a needle in a haystack, buried among so many others at whatever.com?
Coracle provides these services free of charge with every subscription. But if you don’t want us to do it, get someone to make these simple adjustments to your site so you can perform better on the organic search results: the results that buyers trust most. Your site is no good if no one can find you. If no one can find you, you have a bad site, no matter how pretty it may be.
The final measure of “a good site” is not what it looks like, but about how many SALES it brings you. Chances are good that you might not need to buy “lead generation” programs if your Web site is a good one, for if it is, you already are receiving real measurable sales from it. Your Web site should be your strongest Internet marketing tool.
Mike Parker is director of sales and marketing for Coracle, Inc., the First Page Search Recognition company. To request a copy of “Online Marketing Special Extra: 15 tips you can use to make real money” e-mail info@CoracleInc.com. Visit www.CoracleInc.com for more information.
Wednesday, June 21, 2006
Follow up is Key!
This article has a good plan for following up with the cooler leads. As the market slows, those who have good follow-up strategies in place will be fine...Those who relied on cherry-picking (or low-hanging fruit) for all their business may have a harder time...
3 Persuasive Strategies for Nurturing Move-Up Buyers or Renters
by Demian Farnworth
Transactions, not leads, are the true currency of real estate.
That's why it's so important to make follow up a priority on your leads you generate. If you don't nurture and close those leads, even a 1,000 leads a month won't save you from burnout, the blues or bankruptcy.
Understandably, following up on even 100 leads in a month is a lot of work. That's why if you do generate a lot of leads then you should probably cherry pick only the financially qualified and highly-motivated, which, by the way, is a sound strategy.
But let me throw something at you? By simply nurturing the leads that may be further out in the sales cycle, you can easily double the number of transactions you close every year.
But there's a catch. What's it worth to you to close twice as many deals a year as you do now? Thirty, forty, maybe even sixty more hours of your time a month?
If you said more than forty hours of your time is the maximum you are willing to sacrifice, then you'll be please to know that the following strategy will take you less than an hour a month to implement.
Here's How It Works
Once a month take the leads that you didn't follow up on - the ones that you have a name and address for - and split them into two categories based on their address: renters and homeowners.
Now, for the addresses that are obviously apartments send a letter like this for renters.
3-step Move-Up Homeowner Strategy
In first letter you are simply making contact with the renter. You're introducing yourself, sending them the MLS sheet on the home they called about and MLS sheets on 3 more comparable properties. You go so far as applauding them for making a decision to get out of the rent trap. You close with an invitation to meet face-to-face or simply call.
After thirty days, if you haven't heard from them, send a second letter.
In this letter you are including three new MLS sheets for homes like the home they originally called you about. In addition, you are giving another very strong incentive to get out of the rent trap. This time you have a piece of proof - a Harvard University study done that demonstrates that homeowners' assets and wealth grow over 70 times faster than renters. (Although Senior homeowners were the topic of the study, the information is relevant to renters of all ages. Very powerful stuff.) http://www.jchs.harvard.edu/publications/finance/w05-8.pdf
Send the final letter if you haven't heard from anyone in over 60 days from the original call. This third letter really puts a push on the renter to get out of the rent trap by tugging on that emotional heartstring of pride and fear. It also offers an opportunity to sit down with you and discuss issues like down payments, financing and renting versus homeownership.
3-step Move-Up Homeowner Strategy
Now, for the group made up of homeowners, send them the first homeowner letter. In this letter you are doing the same as the renter letter - introducing yourself, sending MLS sheets - except your not including the information about avoiding the rent trap. Again, it's a close with an invitation to meet face-to-face or simply call.
After 30 days, mail the second homeowner letter. Here you are just checking in, informing them if there has been any change on the status of the home they originally called about and sending a couple of MLS sheets for comparables.
For the homeowners, the final letter takes a new approach: in this letter, you are asking them to call you and leave some information behind. They can receive a free over the phone market evaluation simply by calling your toll-free call number. In return you're going to send them an over-the-phone market evaluation. What you're trying to do here is get them thinking about selling their house - even if they are three or more months out already.
Imagine the Benefits
If you want to tap into every ounce of opportunity you can, opening the door to transactions as wide as possible, then this easy, 3-step letter program is exactly what you need to do.
Cherry picking is good when there is plenty of good going around. But especially when the market slows down, you want to have plenty of ripe plants in the ground to pull up when other areas slow down.
One agent said that by following this approach she was able to raise her transactions from 5% to 11% each month with the leads she generated. That means if you can generate 100 leads in a month, then you'll get 11 transactions out of those 100 leads in the next twelve months. And that kind of momentum will build until you have an unstoppable transaction machine.
About the Author: Demian Farnworth is the Copywriter for Proquest Technologies and the Editor for The Real Estate Insider and Writer/Editor for In the Zone, both real estate marketing email newsletters. To learn more about Proquest Technologies simply visit http://www.realestategrowth.com. Or email Demian at demian@proquest-tech.com
3 Persuasive Strategies for Nurturing Move-Up Buyers or Renters
by Demian Farnworth
Transactions, not leads, are the true currency of real estate.
That's why it's so important to make follow up a priority on your leads you generate. If you don't nurture and close those leads, even a 1,000 leads a month won't save you from burnout, the blues or bankruptcy.
Understandably, following up on even 100 leads in a month is a lot of work. That's why if you do generate a lot of leads then you should probably cherry pick only the financially qualified and highly-motivated, which, by the way, is a sound strategy.
But let me throw something at you? By simply nurturing the leads that may be further out in the sales cycle, you can easily double the number of transactions you close every year.
But there's a catch. What's it worth to you to close twice as many deals a year as you do now? Thirty, forty, maybe even sixty more hours of your time a month?
If you said more than forty hours of your time is the maximum you are willing to sacrifice, then you'll be please to know that the following strategy will take you less than an hour a month to implement.
Here's How It Works
Once a month take the leads that you didn't follow up on - the ones that you have a name and address for - and split them into two categories based on their address: renters and homeowners.
Now, for the addresses that are obviously apartments send a letter like this for renters.
3-step Move-Up Homeowner Strategy
In first letter you are simply making contact with the renter. You're introducing yourself, sending them the MLS sheet on the home they called about and MLS sheets on 3 more comparable properties. You go so far as applauding them for making a decision to get out of the rent trap. You close with an invitation to meet face-to-face or simply call.
After thirty days, if you haven't heard from them, send a second letter.
In this letter you are including three new MLS sheets for homes like the home they originally called you about. In addition, you are giving another very strong incentive to get out of the rent trap. This time you have a piece of proof - a Harvard University study done that demonstrates that homeowners' assets and wealth grow over 70 times faster than renters. (Although Senior homeowners were the topic of the study, the information is relevant to renters of all ages. Very powerful stuff.) http://www.jchs.harvard.edu/publications/finance/w05-8.pdf
Send the final letter if you haven't heard from anyone in over 60 days from the original call. This third letter really puts a push on the renter to get out of the rent trap by tugging on that emotional heartstring of pride and fear. It also offers an opportunity to sit down with you and discuss issues like down payments, financing and renting versus homeownership.
3-step Move-Up Homeowner Strategy
Now, for the group made up of homeowners, send them the first homeowner letter. In this letter you are doing the same as the renter letter - introducing yourself, sending MLS sheets - except your not including the information about avoiding the rent trap. Again, it's a close with an invitation to meet face-to-face or simply call.
After 30 days, mail the second homeowner letter. Here you are just checking in, informing them if there has been any change on the status of the home they originally called about and sending a couple of MLS sheets for comparables.
For the homeowners, the final letter takes a new approach: in this letter, you are asking them to call you and leave some information behind. They can receive a free over the phone market evaluation simply by calling your toll-free call number. In return you're going to send them an over-the-phone market evaluation. What you're trying to do here is get them thinking about selling their house - even if they are three or more months out already.
Imagine the Benefits
If you want to tap into every ounce of opportunity you can, opening the door to transactions as wide as possible, then this easy, 3-step letter program is exactly what you need to do.
Cherry picking is good when there is plenty of good going around. But especially when the market slows down, you want to have plenty of ripe plants in the ground to pull up when other areas slow down.
One agent said that by following this approach she was able to raise her transactions from 5% to 11% each month with the leads she generated. That means if you can generate 100 leads in a month, then you'll get 11 transactions out of those 100 leads in the next twelve months. And that kind of momentum will build until you have an unstoppable transaction machine.
About the Author: Demian Farnworth is the Copywriter for Proquest Technologies and the Editor for The Real Estate Insider and Writer/Editor for In the Zone, both real estate marketing email newsletters. To learn more about Proquest Technologies simply visit http://www.realestategrowth.com. Or email Demian at demian@proquest-tech.com
Tuesday, June 20, 2006
Referrals: How to use them to grow your business
He's trying to sell his services, but I think his info about handling referrals is good...
Want Loyal Clients? Let Them Know They’re Appreciated!
Commentary by Brian Buffini
from RISMedia http://www.rismedia.com/index.php/article/articleview/14959/1/1/
I’ve now spent over a decade teaching people about building business by referral, and I often meet agents and lenders who wonder why their clients don’t refer them to others.
This business can actually be very simple, but it requires a systematic approach to building a high-referring database, regardless of the state of the market. First, people have to want to refer you—i.e. you must do a good job for them. If you take care of their needs and concerns before, during and after the transaction, you build a strong loyalty and they’ll be happy to refer you to others. The key is to remind them that you appreciate referrals and this is where you must implement systems to ensure this occurs. Your past clients must be reminded that you work by referral and would appreciate the business.
This element is critical and cannot be overemphasized. People want you to stay in contact with them. You might be reluctant to call them, yet what I see over and over is that people are happy to hear from you. Introduce them to what I call a Client Appreciation Program.
In my own business, I implemented a Client Appreciation Program (CAP) to stay in touch with my clients. This was just one element in the referral systems that grew my real estate company, and is now an integral part of what we teach to our members.
A CAP is basically a systematized care program. It communicates both your trustworthy character and your professional competence through written communication and personal contact. To successfully work by referral, the CAP has three steps that must be followed diligently. This is not about mailing out something to your clients and then just forgetting about it. It is about committing yourself to the building of relationships based on competence and character. Zero in on your A+ clients, and follow through on all three steps:
1. Send out a monthly Item of Value to your database (we produce millions of these every month so our clients have a first-class product to send to their database)
2. Follow-up with a phone call or a short visit (Pop-By)
3. Send a Personal Note
Why should you do this? The Client Appreciation Program helps you put the “Give, Ask, Receive” principle into action, allowing you to give value, ask for referrals and receive them! It’s the best way to produce a steady stream of referrals by consistently staying in touch with your “A” clients. Sending out an Item of Value, similar to the ones we produce for our Realtors and lenders, gives you a great reason to have personal face-to-face or voice-to-voice contact with your database. You ultimately end up working with clients you enjoy and they’re glad to hear from you.
Client Appreciation: Step by Step
Build, sort and qualify your database.
Send a letter with an Item of Value to past clients letting them know of your commitment to doing business by referral.
Send introduction letters to those with whom you have never done a transaction, and introduce them to your CAP.
Send out letters to only as many clients as you can call or Pop-By within the following couple of days. Continue to do this until you have gone through your entire database.
Make calls to qualify each person as to their likelihood of referring you to others.
Further explain what the CAP is and get their permission to keep them on your program.
Follow-up by sending a personal note.
Every month, we send our members Items of Value to mail to their database, but we also remind them that they themselves are the real Item of Value! The CAP is simply a way to remain at the forefront of your clients’ minds whenever they hear of someone who wants to buy or sell a home. It can be difficult to communicate your value, but when you allow your clients to refer you to others, they will always do a better job referring you than you could ever do.
Send out your Item of Value on a regular schedule every month. Your clients will come to expect it. One of the greatest gifts you give to your clients is your time. Be sure to follow-up after you have mailed the Item of Value with a phone call or a Pop-By.
Get feedback from your clients. Ask them if there is anything they would like to see as an Item of Value.
Put other businesses on your CAP mailing list. Identify and qualify reputable businesspeople to whom you can refer your clients, and from whom you can receive reciprocal referrals.
Consistently resort and qualify your database. It is about quality, not quantity in your database.
Results:
A client of ours met a judge at a community meeting. She added the judge to her CAP, explaining that she sends out informative mailings to keep in touch with individuals who send her referred business. The judge thought her mailings were very well done, and two months later, recommended her services to an attorney that needed help with an estate sale. The referred attorney called our client to handle the transaction. It was a $3 million estate! Our client double-ended that sale and earned a commission of $120,000. This story highlights the power of adding qualified people to your database and following up with an Item of Value on a monthly basis.
It’s important to remember that the CAP is a complimentary service you provide to clients if you want to work exclusively by referral. It is two- dimensional in that it is designed to communicate both your character and competence. To generate results, the items must be professional and followed up with personal contact. In these days of lengthening market times, implement an appreciation program for your current and past clients. You’ll build the thriving business you’ve always dreamed of.
Brian Buffini is the founder and chairman of Buffini & Company. For more information, visit www.buffiniandcompany.com.
Want Loyal Clients? Let Them Know They’re Appreciated!
Commentary by Brian Buffini
from RISMedia http://www.rismedia.com/index.php/article/articleview/14959/1/1/
I’ve now spent over a decade teaching people about building business by referral, and I often meet agents and lenders who wonder why their clients don’t refer them to others.
This business can actually be very simple, but it requires a systematic approach to building a high-referring database, regardless of the state of the market. First, people have to want to refer you—i.e. you must do a good job for them. If you take care of their needs and concerns before, during and after the transaction, you build a strong loyalty and they’ll be happy to refer you to others. The key is to remind them that you appreciate referrals and this is where you must implement systems to ensure this occurs. Your past clients must be reminded that you work by referral and would appreciate the business.
This element is critical and cannot be overemphasized. People want you to stay in contact with them. You might be reluctant to call them, yet what I see over and over is that people are happy to hear from you. Introduce them to what I call a Client Appreciation Program.
In my own business, I implemented a Client Appreciation Program (CAP) to stay in touch with my clients. This was just one element in the referral systems that grew my real estate company, and is now an integral part of what we teach to our members.
A CAP is basically a systematized care program. It communicates both your trustworthy character and your professional competence through written communication and personal contact. To successfully work by referral, the CAP has three steps that must be followed diligently. This is not about mailing out something to your clients and then just forgetting about it. It is about committing yourself to the building of relationships based on competence and character. Zero in on your A+ clients, and follow through on all three steps:
1. Send out a monthly Item of Value to your database (we produce millions of these every month so our clients have a first-class product to send to their database)
2. Follow-up with a phone call or a short visit (Pop-By)
3. Send a Personal Note
Why should you do this? The Client Appreciation Program helps you put the “Give, Ask, Receive” principle into action, allowing you to give value, ask for referrals and receive them! It’s the best way to produce a steady stream of referrals by consistently staying in touch with your “A” clients. Sending out an Item of Value, similar to the ones we produce for our Realtors and lenders, gives you a great reason to have personal face-to-face or voice-to-voice contact with your database. You ultimately end up working with clients you enjoy and they’re glad to hear from you.
Client Appreciation: Step by Step
Build, sort and qualify your database.
Send a letter with an Item of Value to past clients letting them know of your commitment to doing business by referral.
Send introduction letters to those with whom you have never done a transaction, and introduce them to your CAP.
Send out letters to only as many clients as you can call or Pop-By within the following couple of days. Continue to do this until you have gone through your entire database.
Make calls to qualify each person as to their likelihood of referring you to others.
Further explain what the CAP is and get their permission to keep them on your program.
Follow-up by sending a personal note.
Every month, we send our members Items of Value to mail to their database, but we also remind them that they themselves are the real Item of Value! The CAP is simply a way to remain at the forefront of your clients’ minds whenever they hear of someone who wants to buy or sell a home. It can be difficult to communicate your value, but when you allow your clients to refer you to others, they will always do a better job referring you than you could ever do.
Send out your Item of Value on a regular schedule every month. Your clients will come to expect it. One of the greatest gifts you give to your clients is your time. Be sure to follow-up after you have mailed the Item of Value with a phone call or a Pop-By.
Get feedback from your clients. Ask them if there is anything they would like to see as an Item of Value.
Put other businesses on your CAP mailing list. Identify and qualify reputable businesspeople to whom you can refer your clients, and from whom you can receive reciprocal referrals.
Consistently resort and qualify your database. It is about quality, not quantity in your database.
Results:
A client of ours met a judge at a community meeting. She added the judge to her CAP, explaining that she sends out informative mailings to keep in touch with individuals who send her referred business. The judge thought her mailings were very well done, and two months later, recommended her services to an attorney that needed help with an estate sale. The referred attorney called our client to handle the transaction. It was a $3 million estate! Our client double-ended that sale and earned a commission of $120,000. This story highlights the power of adding qualified people to your database and following up with an Item of Value on a monthly basis.
It’s important to remember that the CAP is a complimentary service you provide to clients if you want to work exclusively by referral. It is two- dimensional in that it is designed to communicate both your character and competence. To generate results, the items must be professional and followed up with personal contact. In these days of lengthening market times, implement an appreciation program for your current and past clients. You’ll build the thriving business you’ve always dreamed of.
Brian Buffini is the founder and chairman of Buffini & Company. For more information, visit www.buffiniandcompany.com.
Friday, June 09, 2006
SEO is the future...
I'm not sure if I would do too much of #3 (outside of possibly messing with the metatags), but this is an interesting article...
Real estate search goes organic
Marketing tricks aim to ensure high Web placement
Friday, June 09, 2006
By Bernice Ross
Inman News
How can you maximize your return on your Web advertising campaign with a minimum amount of cost? Going organic is the solution.
There are two primary ways to advertise on search engines such as Google, MSN or Yahoo. The first is called "pay-per-click." This type of paid placement is based upon how much you are willing to bid to be placed above other bidders. In contrast, "organic" search placement is based upon how well the key words on a given Web site match the search terms the user selects. It is also based upon how many people click through to the site, whether or not they stay on the site, how long the site has been in existence, as well as a host of other complicated factors.
Given that organic search costs you nothing and pay-per-click can be quite expensive, obtaining good organic search placement can be a huge win for your business. For example, I recently received an e-mail from a man who was trying to market a condominium project using pay-per-click ads. He was paying $20,000 per month and getting virtually no response. As this example illustrates, pay-per-click programs can be extraordinarily expensive. Prices are especially high if you're bidding in a metropolitan area or against well-funded companies who specialize in Web marketing.
The auction mentality makes big bucks for search-engine companies such as Google, MSN and Yahoo. Click fraud is another huge issue that few discuss. In contrast, organic clicks actually help you achieve better placement.
As an individual agent or brokerage, what can you do to be on the Web and achieve high organic placement? Here are three simple strategies.
1. Get "granular"
Rather than tackling a mountain of advertisers, think of picking up grains of sand. For example, there may be tremendous competition for terms such as "Portland homes for sale" or "Kansas City real estate." Competing for these terms will be exorbitantly expensive.
In contrast, there is virtually no competition for names of specific subdivisions. You may be able to achieve excellent placement by setting up a single page on your Web site devoted to "Bermuda Dunes golf homes, Palm Springs." Another search term might be "Golf course properties, Bermuda Dunes." Set up the page and register a separate URL with Network Solutions or GoDaddy.com. For example, you could register BermudaDunesGolfHomes.com . Pack this page full of words that reference, golf, properties, homes for sale, Bermuda Dunes, Palm Springs, etc. Although this page may appear to be a separate Web site, Web visitors simply land on a different page on your main Web site.
You could also do this based upon languages spoken or types of careers. For example, if you are fluent in Spanish, you might register "SanAntonioCasas.com" Another alternative would be to register "Homes4LATeachers.com" or any other site that references a specific geographical area in conjunction with a profession.
2. Start a blog
Currently, many search engines will give users higher placement if their site has a blog. The advantage of blogging is that you are adding content every day. Furthermore, if you have regular readers, they will visit your site repeatedly for new information.
The more visitors that you have, the better your organic placement will be. In terms of what to include, consider updating your sphere of influence on local events, funny stories, or with ideas on how to save them time and money. If you're not good at writing, hire a virtual assistant to handle the posts for you. You can have a quote of the week (or of the day if you're really ambitious), interesting tidbits from Inman News, or other resources that consumers will find to be interesting.
3. Misspell major terms
There is a substantial part of the search-engine industry that focuses on setting up Web sites that misspell one or more words in the search. One of the most commonly misspelled words is "Realtor." A slightly different approach is to check for spellings based upon common typographical errors. Also, when you visit a site such as GoDaddy.com, they give you additional suggestions for terms you may use.
Regardless of the approach you elect, remember that obtaining free or organic search placement is a process. Experiment with different terms and monitor the number of hits you receive and convert. If one approach doesn't work, experiment with others. Another important point to remember is that search is unlike traditional "right now" business where people are ready to take action now. Instead, Web buyers must be courted for 6 to 18 months before they are ready to take action. Whether you are embarking on a pay-per-click program or seeking to improve your positioning by using organic search, your success will be contingent upon your patience, your willingness to stay in regular contact for up to 18 months, and your willingness to constantly monitor and adjust your advertising campaign.
Bernice Ross, co-owner of Realestatecoach.com, has written a new book, "Waging War on Real Estate's Discounters," available online. She can be reached at bernice@realestatecoach.com.
Real estate search goes organic
Marketing tricks aim to ensure high Web placement
Friday, June 09, 2006
By Bernice Ross
Inman News
How can you maximize your return on your Web advertising campaign with a minimum amount of cost? Going organic is the solution.
There are two primary ways to advertise on search engines such as Google, MSN or Yahoo. The first is called "pay-per-click." This type of paid placement is based upon how much you are willing to bid to be placed above other bidders. In contrast, "organic" search placement is based upon how well the key words on a given Web site match the search terms the user selects. It is also based upon how many people click through to the site, whether or not they stay on the site, how long the site has been in existence, as well as a host of other complicated factors.
Given that organic search costs you nothing and pay-per-click can be quite expensive, obtaining good organic search placement can be a huge win for your business. For example, I recently received an e-mail from a man who was trying to market a condominium project using pay-per-click ads. He was paying $20,000 per month and getting virtually no response. As this example illustrates, pay-per-click programs can be extraordinarily expensive. Prices are especially high if you're bidding in a metropolitan area or against well-funded companies who specialize in Web marketing.
The auction mentality makes big bucks for search-engine companies such as Google, MSN and Yahoo. Click fraud is another huge issue that few discuss. In contrast, organic clicks actually help you achieve better placement.
As an individual agent or brokerage, what can you do to be on the Web and achieve high organic placement? Here are three simple strategies.
1. Get "granular"
Rather than tackling a mountain of advertisers, think of picking up grains of sand. For example, there may be tremendous competition for terms such as "Portland homes for sale" or "Kansas City real estate." Competing for these terms will be exorbitantly expensive.
In contrast, there is virtually no competition for names of specific subdivisions. You may be able to achieve excellent placement by setting up a single page on your Web site devoted to "Bermuda Dunes golf homes, Palm Springs." Another search term might be "Golf course properties, Bermuda Dunes." Set up the page and register a separate URL with Network Solutions or GoDaddy.com. For example, you could register BermudaDunesGolfHomes.com . Pack this page full of words that reference, golf, properties, homes for sale, Bermuda Dunes, Palm Springs, etc. Although this page may appear to be a separate Web site, Web visitors simply land on a different page on your main Web site.
You could also do this based upon languages spoken or types of careers. For example, if you are fluent in Spanish, you might register "SanAntonioCasas.com" Another alternative would be to register "Homes4LATeachers.com" or any other site that references a specific geographical area in conjunction with a profession.
2. Start a blog
Currently, many search engines will give users higher placement if their site has a blog. The advantage of blogging is that you are adding content every day. Furthermore, if you have regular readers, they will visit your site repeatedly for new information.
The more visitors that you have, the better your organic placement will be. In terms of what to include, consider updating your sphere of influence on local events, funny stories, or with ideas on how to save them time and money. If you're not good at writing, hire a virtual assistant to handle the posts for you. You can have a quote of the week (or of the day if you're really ambitious), interesting tidbits from Inman News, or other resources that consumers will find to be interesting.
3. Misspell major terms
There is a substantial part of the search-engine industry that focuses on setting up Web sites that misspell one or more words in the search. One of the most commonly misspelled words is "Realtor." A slightly different approach is to check for spellings based upon common typographical errors. Also, when you visit a site such as GoDaddy.com, they give you additional suggestions for terms you may use.
Regardless of the approach you elect, remember that obtaining free or organic search placement is a process. Experiment with different terms and monitor the number of hits you receive and convert. If one approach doesn't work, experiment with others. Another important point to remember is that search is unlike traditional "right now" business where people are ready to take action now. Instead, Web buyers must be courted for 6 to 18 months before they are ready to take action. Whether you are embarking on a pay-per-click program or seeking to improve your positioning by using organic search, your success will be contingent upon your patience, your willingness to stay in regular contact for up to 18 months, and your willingness to constantly monitor and adjust your advertising campaign.
Bernice Ross, co-owner of Realestatecoach.com, has written a new book, "Waging War on Real Estate's Discounters," available online. She can be reached at bernice@realestatecoach.com.
Wednesday, June 07, 2006
The Top 10 Dumbest Mistakes Buyers/Sellers Make
Mistake #1:
Not knowing how much they can afford before they make an offer. The easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford.
Mistake #2:
Not realizing in advance who the real estate agent represents. Most people think that the agent they are working with is working for them. But unless they are working as your buyer representative, they represent the seller.
Mistake #3:
Not realizing that the wrong mortgage can cost thousands of dollars in needless
interest and taxes. Check with your accountant before you make your final decision on which mortgage you are going to choose. Your CPA will be able to tell you what the long-term effects will be on your income.
Mistake #4:
Not discovering hidden defects before they buy a home. One of the most expensive mistakes is also one of the easiest to avoid, by having a professional pre-purchase home inspection.
Mistake #5:
Not knowing how much credit can affect their ability to buy or refinance a home.
Before you buy a home, many of the clouds on your credit history can be cleared up
or even eliminated. Your mortgage professional can help you review and prepare
your credit file in advance.
Mistake #6:
Basing their asking price on needs or emotion rather than market value.
Many times, people make their pricing decisions based on how much they paid or
invested into their home. This can be an expensive mistake. Overpriced homes take
longer to sell and eventually net the seller less money. Consult with a professional
real estate agent. They can assist you in pricing your home correctly from the
beginning.
Mistake #7:
Failing to "showcase" their home. First impressions are the most important. Experience shows that for every $100 in repairs that your home needs, a buyer will deduct $300-$500 from their offer. Thoroughly clean and prepare your home before you put it on the market if you want top dollar.
Mistake #8:
Signing a listing contract with no way out. Most traditional real estate agents want you to sign a listing contract with no way out. When you list you home with Best Local Agent Team, you can cancel your listing agreement at any time, no questions asked.
Mistake #9:
Choosing the wrong agent or choosing them for the wrong reasons. Many homeowners list their home with the agent who works for the biggest company. You need to choose the agent with the best marketing plan and track record to sell your home.
Mistake #10:
Not knowing all of their legal rights and obligations. Real estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You need to consult a knowledgeable, professional who understands the ins and outs of a real estate transaction.
Not knowing how much they can afford before they make an offer. The easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford.
Mistake #2:
Not realizing in advance who the real estate agent represents. Most people think that the agent they are working with is working for them. But unless they are working as your buyer representative, they represent the seller.
Mistake #3:
Not realizing that the wrong mortgage can cost thousands of dollars in needless
interest and taxes. Check with your accountant before you make your final decision on which mortgage you are going to choose. Your CPA will be able to tell you what the long-term effects will be on your income.
Mistake #4:
Not discovering hidden defects before they buy a home. One of the most expensive mistakes is also one of the easiest to avoid, by having a professional pre-purchase home inspection.
Mistake #5:
Not knowing how much credit can affect their ability to buy or refinance a home.
Before you buy a home, many of the clouds on your credit history can be cleared up
or even eliminated. Your mortgage professional can help you review and prepare
your credit file in advance.
Mistake #6:
Basing their asking price on needs or emotion rather than market value.
Many times, people make their pricing decisions based on how much they paid or
invested into their home. This can be an expensive mistake. Overpriced homes take
longer to sell and eventually net the seller less money. Consult with a professional
real estate agent. They can assist you in pricing your home correctly from the
beginning.
Mistake #7:
Failing to "showcase" their home. First impressions are the most important. Experience shows that for every $100 in repairs that your home needs, a buyer will deduct $300-$500 from their offer. Thoroughly clean and prepare your home before you put it on the market if you want top dollar.
Mistake #8:
Signing a listing contract with no way out. Most traditional real estate agents want you to sign a listing contract with no way out. When you list you home with Best Local Agent Team, you can cancel your listing agreement at any time, no questions asked.
Mistake #9:
Choosing the wrong agent or choosing them for the wrong reasons. Many homeowners list their home with the agent who works for the biggest company. You need to choose the agent with the best marketing plan and track record to sell your home.
Mistake #10:
Not knowing all of their legal rights and obligations. Real estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You need to consult a knowledgeable, professional who understands the ins and outs of a real estate transaction.
Internet inquiries are very different from traditional offline leads.
Success depends on understanding this difference.
* Internet buyers spend an average of 5.9 weeks considering the purchase of a home before contacting a REALTOR®, compared to 2.1 weeks for traditional buyers.
* Internet buyers spend an average of 4.8 weeks investigating homes and neighborhoods prior to contacting a REALTOR®
* Having done significantly more research than their traditional buyer counterparts, Internet buyers spend less time looking for a home once they began working with a REALTOR®, spending just 1.9 weeks on average, compared to 7.1 weeks for a traditional buyer
* The typical Internet buyer also visited fewer homes with their REALTOR® than the typical traditional buyer. Internet buyers visited an average of 6.1 homes with their REALTOR®, whereas a typical traditional buyer visited 15.4 homes with their REALTOR®.
* Internet buyers tended to be younger than traditional buyers with a mean age of 38.5 years, compared to 43.5 years for traditional buyers.
What does all this mean to you?
What this means is that the Internet home buyer is not the same homebuyer you thought you knew. They take longer to choose a REALTOR®, but that’s because they are beginning their process much earlier in the game. (It doesn’t require much effort to decide one day you want to browse around online and start looking for some homes. It’s a bit more of a commitment to set aside an afternoon to go driving around looking for open houses). What’s most important is that these people WILL BUY. In fact, once they choose you as their REALTOR®, they’re actually BETTER buyers. They don’t shop your services as much, they usually have more money, and they’re better educated (both about buying a home and in general).
Where most REALTORS® have difficulty is seeing past the extended initial phase that Internet buyers are so well known for. Instead, they usually are seen literally throwing this business away and writing it off as “bad leads.”
Your ability to effectively manage and maintain the Internet buyer during their initial phase of home buying is what will set you apart from your competition and ensure your success with some type of traffic program.
Your initial follow up with an inquiry is a critical stage in the process.
Poor follow up stops everything in its tracks. When it comes to following up with inquiries, there are a few things you should keep in mind:
1. Immediacy is crucial: A unique attribute of the Internet is that information is accessible immediately. Because of this, Internet users have developed into a very impatient, “now” culture. If you do not respond to an inquiry within 12 hours (at the most) of receiving it, your chance of losing their interest increases dramatically. Best practice is closer to a 0-15 minute response time. Because of this, the auto-responder built right into your landing page can be your most powerful tool. Be sure to customize this auto-responder to your specific needs.
2. Ask leading questions: Many Realtors make the mistake of putting a sentence like “If you need any help, don’t hesitate to ask.” Then they wonder why no one replies to their emails. Be sure to ask questions which provoke an immediate response. Initiate the conversation, rather than waiting for them to decide they’re ready to talk to you.
For Example:
• Are you looking for a place with a pool?
• Are you looking for a 1 or 2 story house?
• Do you have children? If so, are you looking to move within a particular school district
• I know the commute traffic here is pretty bad sometimes. Where will you be working?
3. Include a value proposition for your website: Getting someone to come back to your website is important. You increase your brand awareness every time you are able to get yourself in front of them. Be sure to include a reason for them to go back to your website other than the reason why they went there in the first place. Just ask yourself, “What else do people buying a home in my area want to do on my site, other than search for homes?”
Inquiry Incubation
Due to the need to hit short-term sales goals, many agents will focus all of their attention on working “hot leads.” Focusing too much on this can cause several problems in your marketing strategy:
• The cost of generating a “hot lead” can easily be more than 10 times greater than the cost of generating any other lead.
• You will experience harsh lows in your sales pipeline, when all the “hot leads” sell. You end up being caught in a vicious cycle of actively searching for the next “hot lead” at a very high cost.
With Internet-based marketing, the key to driving down your cost of acquisition and maximizing the benefits reaped from your advertising dollars is to practice effective inquiry incubation methods. This means to not just focus on the hottest leads, but to also identify the warm and even cold inquiries and nurture them over time into hot inquiries. You must implement an effective inquiry incubation cycle, with regularly scheduled “marketing touches” that are aimed at building credibility and brand awareness, and also presenting strong value propositions. By doing this, you create a much more balanced approach to long-term and short-term lead generation.
Success depends on understanding this difference.
* Internet buyers spend an average of 5.9 weeks considering the purchase of a home before contacting a REALTOR®, compared to 2.1 weeks for traditional buyers.
* Internet buyers spend an average of 4.8 weeks investigating homes and neighborhoods prior to contacting a REALTOR®
* Having done significantly more research than their traditional buyer counterparts, Internet buyers spend less time looking for a home once they began working with a REALTOR®, spending just 1.9 weeks on average, compared to 7.1 weeks for a traditional buyer
* The typical Internet buyer also visited fewer homes with their REALTOR® than the typical traditional buyer. Internet buyers visited an average of 6.1 homes with their REALTOR®, whereas a typical traditional buyer visited 15.4 homes with their REALTOR®.
* Internet buyers tended to be younger than traditional buyers with a mean age of 38.5 years, compared to 43.5 years for traditional buyers.
What does all this mean to you?
What this means is that the Internet home buyer is not the same homebuyer you thought you knew. They take longer to choose a REALTOR®, but that’s because they are beginning their process much earlier in the game. (It doesn’t require much effort to decide one day you want to browse around online and start looking for some homes. It’s a bit more of a commitment to set aside an afternoon to go driving around looking for open houses). What’s most important is that these people WILL BUY. In fact, once they choose you as their REALTOR®, they’re actually BETTER buyers. They don’t shop your services as much, they usually have more money, and they’re better educated (both about buying a home and in general).
Where most REALTORS® have difficulty is seeing past the extended initial phase that Internet buyers are so well known for. Instead, they usually are seen literally throwing this business away and writing it off as “bad leads.”
Your ability to effectively manage and maintain the Internet buyer during their initial phase of home buying is what will set you apart from your competition and ensure your success with some type of traffic program.
Your initial follow up with an inquiry is a critical stage in the process.
Poor follow up stops everything in its tracks. When it comes to following up with inquiries, there are a few things you should keep in mind:
1. Immediacy is crucial: A unique attribute of the Internet is that information is accessible immediately. Because of this, Internet users have developed into a very impatient, “now” culture. If you do not respond to an inquiry within 12 hours (at the most) of receiving it, your chance of losing their interest increases dramatically. Best practice is closer to a 0-15 minute response time. Because of this, the auto-responder built right into your landing page can be your most powerful tool. Be sure to customize this auto-responder to your specific needs.
2. Ask leading questions: Many Realtors make the mistake of putting a sentence like “If you need any help, don’t hesitate to ask.” Then they wonder why no one replies to their emails. Be sure to ask questions which provoke an immediate response. Initiate the conversation, rather than waiting for them to decide they’re ready to talk to you.
For Example:
• Are you looking for a place with a pool?
• Are you looking for a 1 or 2 story house?
• Do you have children? If so, are you looking to move within a particular school district
• I know the commute traffic here is pretty bad sometimes. Where will you be working?
3. Include a value proposition for your website: Getting someone to come back to your website is important. You increase your brand awareness every time you are able to get yourself in front of them. Be sure to include a reason for them to go back to your website other than the reason why they went there in the first place. Just ask yourself, “What else do people buying a home in my area want to do on my site, other than search for homes?”
Inquiry Incubation
Due to the need to hit short-term sales goals, many agents will focus all of their attention on working “hot leads.” Focusing too much on this can cause several problems in your marketing strategy:
• The cost of generating a “hot lead” can easily be more than 10 times greater than the cost of generating any other lead.
• You will experience harsh lows in your sales pipeline, when all the “hot leads” sell. You end up being caught in a vicious cycle of actively searching for the next “hot lead” at a very high cost.
With Internet-based marketing, the key to driving down your cost of acquisition and maximizing the benefits reaped from your advertising dollars is to practice effective inquiry incubation methods. This means to not just focus on the hottest leads, but to also identify the warm and even cold inquiries and nurture them over time into hot inquiries. You must implement an effective inquiry incubation cycle, with regularly scheduled “marketing touches” that are aimed at building credibility and brand awareness, and also presenting strong value propositions. By doing this, you create a much more balanced approach to long-term and short-term lead generation.
Writing an Effective Sales Message
The 10 Ingredients of an Effective Sales Message
1. A compelling headline
2. Attention-catching sub-headlines
3. Bulleting list of features and benefits
4. A few intriguing questions to engage the prospect
5. An incentive for responding promptly
6. An assurance or guarantee of satisfaction
7. A testimonial or endorcement
8. Some background on your experience & ties to the community
9. A call to action (urge them to call, visit your website, stop by your office, email an inquiry, etc.)
10. A P.S. used as a place to put a reminder, a special offer, or added incentive
1. A compelling headline
2. Attention-catching sub-headlines
3. Bulleting list of features and benefits
4. A few intriguing questions to engage the prospect
5. An incentive for responding promptly
6. An assurance or guarantee of satisfaction
7. A testimonial or endorcement
8. Some background on your experience & ties to the community
9. A call to action (urge them to call, visit your website, stop by your office, email an inquiry, etc.)
10. A P.S. used as a place to put a reminder, a special offer, or added incentive
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