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
Wednesday, June 21, 2006
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
Friday, April 28, 2006
Real estate dinosaurs still roam the earth: Technology leaves some agents in prehistoric times
Friday, April 28, 2006
By Bernice Ross, reposted from Inman News
Do you follow up on your e-mails promptly? Are you advertising using pay-per-click? Do you conduct digital transactions? Do you use transaction-tracking platform? Are your lead generation and lead follow-up systems automated? Do you know about Oodle, Trulia and Zillow? Do you use text messaging? If not, you may be on the verge of becoming a real estate dinosaur.
In the 1960s, the mantra of the baby boomers was: "Don't trust anyone over 30." Today, of course, boomers are still trying to hang on to their youth. Sadly, unless agents who are over 40 are prepared to make a quantum shift in how they do business, there's a high probability that their style of doing business will soon become extinct.
On the other hand, the under-40s may continue to struggle with building their business because Boomers still control 54 percent of the listing inventory. No matter what generation you are in, to thrive in today's rapidly changing environment, you must balance the best of the old with today's technological innovations.
I recently spoke with a small group of agents whose manager had organized a training course around my book, "Waging War on Real Estate's Discounters." One of the young agents asked if I still recommended 800 Call Capture (IVR) systems as a strategy given all the changes in technology. She based her question on the fact that she does everything via e-mail and text messaging, and seldom uses the phone. I explained the importance of call capture in terms of tracking advertising return on investment (ROI), providing better service to consumers, and most importantly, obtaining correct contact information from people who call on our sign, print and Web advertising. When agents explain how these tools help sellers obtain the best possible price for their property, they normally will sign a listing agreement on the spot. In response to her comments, one of the more than 40 agents said that he only wanted clients who would call him. When I mentioned the importance of using new technologies such as texting or the new search-engine products, he wasn't interested. The younger agent emphasized how that every one of her friends used these tools when they were looking for property.
This event highlights an important bifurcation that is taking place in our business. The younger the agents are, the more likely they are to use technological tools in their business. Furthermore, they are less inclined to pick up the telephone and more inclined to communicate via e-mail or text messaging. The same is true for our clients in this age group. They expect e-mail and text communication, and they also expect their agent to use the latest search and technological tools. When they inquire how you will market their listing and you respond by outlining your print advertising program in the local paper, their response is, "Why would you want to do that? Aren't you going to advertise on Google, MSN, Yahoo and craigslist?" They expect you to respond to their inquiries instantaneously just as they do when they receive a text or e-mail message. This is difficult for those of us over 40 since we often have trouble just tapping out a single e-mail message on our PDAs.
In contrast, one of the most stunning things you may observe about today's teenagers is how they can carry on up to 10 online conversations simultaneously. Because our younger clients have grown up with technology, it is easy for them. More importantly, if you want their business, you must be comfortable using technology to work with them when they're ready to buy.
On the other side of the coin, older clients are often ill at ease with e-mail. Many would prefer a telephone call. In fact, many boomers will not use their PDAs to text simply because their fingers are too stiff to do so. This age group expects personal contact rather than just e-mail contact. E-mail may seem too impersonal. Furthermore, many still read the newspaper and enjoy looking at pictures in print media rather than electronic media.
Ultimately, if you want to avoid becoming a real estate dinosaur or if you want to capture the over-40 crowd's business, you must be willing to communicate with your clients in the style that they prefer. When you work with a buyer or seller, ask them how they want you to communicate with them. If the client expects text messaging, know that quick response is critical. If you are working with someone who is over 40, he/she is more likely to demand a face-to-face meeting or contact via telephone. Be flexible.
Most importantly, however, if you plan to stay in the business for more than two or three years, now is the time to start making substantial changes in how you do business. Educate yourself on how to market using the various types of search engines. Purchase a tablet PC and go paperless. Start taking the steps today to be a technology early adopter. In the race for business, the one who has the best technology and the best systems is usually the one who wins.
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.
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