5 Tips for Getting And Using Testimonials in Your Business
Tip #1: "How do you get testimonials?"
Well, the answer is easy. It starts with your commitment and willingness to get them. Once you make the decision you're gonna go after them, the rest is almost an afterthought. No kidding.
The first step is to put the "testimonial gathering process" into your business sequence. What does this mean? It means that sending a testimonial request letter should be part of your post-closing checklist...right next to "send a closing gift" and "change the home status in MLS."
The second step is simply to ASK. The trick is when and how to ask.
I personally recommend asking for testimonials immediately after a successful close - especially if it was a difficult close that required a lot of your attention and skill to complete successfully. This is the time when your client's "happy gas" is flowing and they're really excited about buying or selling their home.
Tip #2: How do you ask?
That's simple too. Create a simple one page letter (with a second sheet attached for their testimonial) that explains WHY you want a testimonial. Open your letter with something like:
Dear [client name]...
" In today's world it's difficult to know who's a true professional...who you can trust...and who's most competent to help with your home buying/selling needs. My strategy is not to talk about myself or my company, but to share comments about my service performance from my best clients.
And that's why I'm writing to you today. Would you mind sharing some of your thoughts about your experience in working with me? Your comments will help others who were in your situation to better understand why I am their best choice for real estate services."
Next, you'll want to lead them into how they should write their testimonial - so you get strong comments. Do this by sharing questions with them: How much money did I save you? Did I help make the process easier for you? Was my knowledge helpful? Did I go above and beyond to help you? The more specific they make their testimonial, the better.
Next, you want to include with your request a Pre-Address, PRE-STAMPED envelope so they can simply drop their comments back to you (and by enclosing the pre-stamped envelope, they're not about to throw a good stamp in the trash - so they'll be more motivated to fill it out. Psychology at work, my friend.)
And here's another idea: A lot of smart agents will meet their clients and take a photo of them in front of their new (or now-sold) home. Then they'll ask for a few comments they can use. Now you have a photo, AND a comment - even more power.
Tip #3: Make your testimonials believable.
Don't get a great testimonial and weaken it by putting their first and last initials. It causes skepticism in the reader. Put as much information as you can get away with in your testimonials: first and last name, photo, city, state...some agents even put in their client's phone number. WOW! That's a real, believable testimonial, don't you think?
Tip #4: Accumulate as many testimonials as you possibly can.
You can never have too many testimonials. Also, your testimonials will each demonstrate a different benefit or experience people had with you. So you can sort your testimonial bank by the type of benefit people received from you: Saved time, saved money, arranged special financing, solved a specific problem, revealed how you are different, etc.
Tip #5: When you get 'em, FLAUNT 'em.
Don't be shy with your testimonials. Use them in as many places as you can imagine. Want a few ideas to stimulate your mind? OK, how about...
• Use them in your ads, farming letters, post cards, articles you write, etc.
• Put them on your business cards, stationary, and other visible places.
• Put them on the wall in your office: create a "Wall of Fame."
• Use them in all your sales letters - especially farming letters or newsletters
• Integrate testimonials into your listing presentation - many agents use a "success book" that's a 3-ring book of testimonials they leave with their client after their presentation (if they don't get the listing right there). It'll force you to go back, plus your clients will be amazed at all the positive comments and benefits (proof!) of working with you.
• Use testimonials on your web site. One agent had a great testimonial she used as the headline of her home page! It said (I'm paraphrasing): "You Are the Only Agent I Would Trust for Our Real Estate Needs..."
source: Broker Agent News
Monday, February 19, 2007
Friday, February 09, 2007
Internet vs. Traditional Home Buyers
Have you made the move to embrace the internet as a means of conducting your business, or are you still working entirely in the offline world? Here are some statistics that should give you pause:
From a recent study of the 2006 California Real Estate market by Leslie Appleton-Young, chief economist and vice president of the California Association of Realtors® (CAR®):
- 92% of Internet buyers found their agent on a Web site; 63% found them through an Internet search engine; 0% of Internet buyers found their agent through brochures, flyers, yard signs or mailers to their home
- In 2000, 28% of people said that they used the Internet as an important part of their home-buying and selection process. In 2006, 70% said they did
- 86% of home buyers started using the Internet as part of their process before they started looking for a specific home; the other 14% did after they started looking, but before they contacted a real estate agent; that means that 100% of buyers surveyed started looking at homes first, agents second.
- fully 81% of Internet buyers stay with the first real estate agent they choose to contact
- Internet buyers spent an average of 4.8 weeks doing research before contacting an agent; traditional buyers only 1.7 weeks. That means an Internet buyer is better prepared and twice as less likely to waste your time
- Internet buyers bought a home on average after spending 2.2 weeks looking for a home with an agent; traditional buyers spent an average of 7.1 weeks
- Internet buyers previewed an average of 6.7 homes with their agent (they had already eliminated ones they did not wish to see), traditional buyers previewed 15.4 homes; an average of just under nine fewer wasted showings per customer
- Number of agents an Internet buyer interviewed, on the median: 1; Traditional buyers? 3.
- 69% of Internet buyers said response time was extremely important.83% of those buyers chose email as their favored communication method with their agent. 0% chose "in person."
- An incredible 97% of Internet buyers said they would use the same agent again. Traditional buyers? 50%.
So what does this mean for you? Adapt or die. As more and more buyers go entirely online to find their next home, there will be fewer and fewer traditional buyers out there. Now is the time to shift offline marketing dollars (brochures, newspaper ads, etc) online, so that the internet starts making money for YOU.
No matter where you are, these data and trends are coming at you. You must get on board or you will be literally run over and left behind.
From a recent study of the 2006 California Real Estate market by Leslie Appleton-Young, chief economist and vice president of the California Association of Realtors® (CAR®):
- 92% of Internet buyers found their agent on a Web site; 63% found them through an Internet search engine; 0% of Internet buyers found their agent through brochures, flyers, yard signs or mailers to their home
- In 2000, 28% of people said that they used the Internet as an important part of their home-buying and selection process. In 2006, 70% said they did
- 86% of home buyers started using the Internet as part of their process before they started looking for a specific home; the other 14% did after they started looking, but before they contacted a real estate agent; that means that 100% of buyers surveyed started looking at homes first, agents second.
- fully 81% of Internet buyers stay with the first real estate agent they choose to contact
- Internet buyers spent an average of 4.8 weeks doing research before contacting an agent; traditional buyers only 1.7 weeks. That means an Internet buyer is better prepared and twice as less likely to waste your time
- Internet buyers bought a home on average after spending 2.2 weeks looking for a home with an agent; traditional buyers spent an average of 7.1 weeks
- Internet buyers previewed an average of 6.7 homes with their agent (they had already eliminated ones they did not wish to see), traditional buyers previewed 15.4 homes; an average of just under nine fewer wasted showings per customer
- Number of agents an Internet buyer interviewed, on the median: 1; Traditional buyers? 3.
- 69% of Internet buyers said response time was extremely important.83% of those buyers chose email as their favored communication method with their agent. 0% chose "in person."
- An incredible 97% of Internet buyers said they would use the same agent again. Traditional buyers? 50%.
So what does this mean for you? Adapt or die. As more and more buyers go entirely online to find their next home, there will be fewer and fewer traditional buyers out there. Now is the time to shift offline marketing dollars (brochures, newspaper ads, etc) online, so that the internet starts making money for YOU.
No matter where you are, these data and trends are coming at you. You must get on board or you will be literally run over and left behind.
Monday, February 05, 2007
Content Ideas: Guerrila Marketing For Blogs and Websites
According to Wikipedia, Guerrilla marketing is an unconventional way of performing promotional activities on a very low budget. Such promotions are sometimes designed so that the target audience is left unaware they have been marketed to and may therefore be a form of undercover marketing (also called stealth marketing).
The best Guerrilla Blog Methods for Real Estate:
1. Hold a contest to incite people participate. Sellsius recommends a home holiday decorating contest or look at Teresa's pumpkin contest. Or check out this SEO contest. I've also seen Realtors take pictures of various buildings in town and ask people the exact address for the contest.
2. Create a blog war to emotionally engage readers
3. Offer a day where you answer 5 reader questions as your blog post. This will incite readers to contact you directly to submit their questions.
4. Hold a weekly local trvia game in a post where you ask a piece of local trivia and see who gets the answer. It helps people participate and you learn some crazy facts in the process.
5. Hold a town tour of scary places with stories or important places with the historical value through either a vidcast or pictures. Do it once per week on the same day and you will be suprised how people respond. It will help you connect with the local community which is exactly what you want to do!
Friday, February 02, 2007
Are you chasing leads to exhaustion?
Are you spendinging all your time and effort always chasing new business? If so, you're wasting time and money.
Consider the following:
1. Repeat business costs about 60% less than generating new business.
2. Volumes of research shows how staying in touch is the best way to generate referrals.
3. Each transaction has the real potential of being the source of six more transactions when the agent diligently nurtures that initial relationship
4. Having a large database of past clients demonstrates to potential new clients your history of success, provides extensive testimonials and generates proof of ongoing business, which positions an agent to sell that book of business when he or she is ready to retire.
Check out this article from Realtor.org on the 5 Groups That You Should Be Contacting Monthly
Don’t underestimate the power of consistent communication. By contacting these five groups once a month, you’ll achieve a steady stream of referrals.
Consider the following:
1. Repeat business costs about 60% less than generating new business.
2. Volumes of research shows how staying in touch is the best way to generate referrals.
3. Each transaction has the real potential of being the source of six more transactions when the agent diligently nurtures that initial relationship
4. Having a large database of past clients demonstrates to potential new clients your history of success, provides extensive testimonials and generates proof of ongoing business, which positions an agent to sell that book of business when he or she is ready to retire.
Check out this article from Realtor.org on the 5 Groups That You Should Be Contacting Monthly
Don’t underestimate the power of consistent communication. By contacting these five groups once a month, you’ll achieve a steady stream of referrals.
Thursday, October 19, 2006
Writing Good Ads to Get the Phone Ringing
What is the difference between an agent who makes money from their marketing and one who doesn't? Ad copy!!!
In our advertising-saturated world, if you're not writing unique, clever ads that stand out, your marketing dollars are going to waste, as most consumers will "tune out" 95% of the marketing around them. (Think about your own habits. How many commericals do you actually watch?)
The tips below are a good starting point for writing any ad. - Kim
The basis of Adwriting 101 is tied to the acronym AIDA. Remembering these four elements of a good ad will make you more money.
- A ttention: How does your ad grab their attention? Write a great headline. Do something different or unusual with your layout or photo
- I nterest: Give them the information they are looking for and make them think this is the house for them.
- D esire: Stimulate their desire with the benefits and emotional reasons.
- A ction: Tell them what to do next. This will come naturally if you've done a good job at the first 3, but make it easy for them to reach you or use a 1-800 response line.
Top 10 Tips to get that phone ringing:
10. Always include the price & location. As a buyer reads ads, they are trying to eliminate the ones that don't fit. When there is plenty of inventory, they will not even call if the price isn't there. To increase your effectiveness, do your homework and know the alternative homes that would fit their needs.
9. Link to Online Pictures Consumers love multiple pictures. Include a link to additional photos on your website. By sending them to your website for additional information, you will capture more prospects. Over 80% of buyers are searching online as well.
8. Offer A Virtual Open House If the media you are using has an open house section, advertise a link to your virtual tour of the house. Do this in your weekend newspaper instead of holding a real open house!
7. Turn The Features into Benefits Don't just list the features. Tell them why they will love the location, the cozy fireplace, the gourmet kitchen. A large yard can offer a place to relax with plenty of room for pets and kids.
6. Play To The Emotions People buy houses based on emotional reasons. They are trying to either to avoid pain (be it emotional, physical, or spiritual) or to gain pleasure (be it real or anticipatory). Ask a question or make a statement to involve their emotions.
5. Include Financing Get from your lender details of several loan options and advertise using the terms in the ad. . A headline of "Can you Afford $1000 per month?" will attract renters that don't realize that they actually could afford to buy. Take care if you add financing terms to be in compliance with Regulation Z.
4. Target Your Market Is this a golf course property? A gated community? A first time buyer home? Write your ad to appeal to the most likely buyer. Give them the benefits! An ad for an investor would focus on bottom line numbers. An ad for retirees would feature benefits of the 55+ community.
3. Write to Their Type Is your most likely potential buyer a Baby Boomer? A retiree? A young professional? An environmentalist? What are their values and concerns? The words and style you use to appeal to each different type of buyer matter.
2. Use Creative Words Bring the adjectives back! Bring alive the activities their family will enjoy. Paint a picture for them of those rooms so they can see themselves cooking gourmet meals in the spacious kitchen! Get your thesaurus out and make your descriptions outstanding and inviting.
1. Call To Action Give them a reason to call. "Won't last long at this price!" "Call today before it is gone."
Monday, October 16, 2006
Advertising Online & Achieving Success on the Internet
Below is an excerpt from an article that I found on Broker Agent News. It highlights the 3 basic things that you should be doing if you have a website. If you aren't, and you need help with any of these, please give me a call (or email me) and I can help! -Kim
Today, 54% of people choose the Internet over the newspaper to look for a home. For that reason alone, if you are not dividing your advertising dollars with at least a nod to this reality, you are throwing good money away.
As an individual agent or brokerage, what can you do to be on the Internet and achieve success? Here are three simple strategies.
- Register a consumer appealing domain name . Most broker or agent domain names contain some portion of your name. For example, www.BettySue.com (Note: the domain names used in this article are used only as examples and may or may not point to an existing website). This domain could potentially scare away potential clients who are not ready to be called by an agent. Register at least one consumer related domain name to use in your advertising efforts. For example, www.BuySanDiegoCondos.com or www.FreeRealEsateInfo.com. These domains placed in advertising are much more compelling for clients to click on or to visit. It's about them and not you.
- Make your website all about the client – NOT you! Time and time again we se brokers and agents plastering "I'm #1" all over their websites. They believe that saying that they are the best means people will want to work with them. What's wrong with this? Most online visitors are looking for information to benefit themselves, not to red a full page resume about the agent. Make sure your websites message is geared toward the prospect or client. Content should read "Find out what your home is worth" or "Find your dream home at a price you can afford." Make this text link to interior pages of your website where they can perform these tasks.
- Gain traffic to your website. If you're like most other Realtors, you aren't having enough success with your website because no one can find you on the Internet if they don't already know your name. Work with an expert who can make it so people looking for homes in your neighborhood come to you when they describe what they are looking for. For example, if you are trying to capture relocation business to your area, optimize your website to be found in search engines for local searches like "San Diego County Relocation."
Now you are asking yourself, how will this all pay off?
- NAR confirms that 77% of home buyers begin their home search online
- The wealthiest Americans are the largest group of online users.
- The majority of homebuyers consider online detailed property information to be extremely valuable in their search for a home.
The importance of Internet presence is already greater than newspaper presence for real estate professionals, and it will continue to climb. Start now and be solidly established and you'll be happy you did. For the last incentive to start now, consider this: next year at this time, most of your competitors will be that much further ahead of you if you don't get started with an Internet Marketing strategy.
Monday, October 02, 2006
4 Steps to Drip Email Marketing Success
1. Don't try and email your list of 300 clients and prospects manually. This can be very time consuming and tedious. I still see real estate professionals thinking they can handle this on their own. If this sounds like you, you are wasting precious time.
2. Do subscribe to a drip marketing campaign system. This will automate the process for you. Begin arranging your client and prospect lists into some predefined campaigns. I've seen this range from a first time home buyer campaign that will run for six months, and send up to 2 or 3 emails a month to each contact in that campaign. I've seen systems with predefined client email campaigns with targeted emails on touch points for the audience who already bought a home from you.
3. Split your email list into specific neighborhood or demographic segments. Customize your email content to match this target audience. For example, if there is a hot condo market or neighborhood in your area, send relevant emails to this group. Demonstrate that you're knowledgeable in your market.
4. Track the results. It is very important to understand your email statistics. When you have 110 prospects in one campaign and only 2% of that 110 are opening the email - it's time to reevaluate. Be sure to check if you have valid email addresses and you are sending relevant content to that target group.
2. Do subscribe to a drip marketing campaign system. This will automate the process for you. Begin arranging your client and prospect lists into some predefined campaigns. I've seen this range from a first time home buyer campaign that will run for six months, and send up to 2 or 3 emails a month to each contact in that campaign. I've seen systems with predefined client email campaigns with targeted emails on touch points for the audience who already bought a home from you.
3. Split your email list into specific neighborhood or demographic segments. Customize your email content to match this target audience. For example, if there is a hot condo market or neighborhood in your area, send relevant emails to this group. Demonstrate that you're knowledgeable in your market.
4. Track the results. It is very important to understand your email statistics. When you have 110 prospects in one campaign and only 2% of that 110 are opening the email - it's time to reevaluate. Be sure to check if you have valid email addresses and you are sending relevant content to that target group.
Monday, September 11, 2006
Home Staging Tips to Help You Sell Fast
What is the difference between a home that sells quickly and one that doesn't? Often it's the little things that will make the difference when trying to sell a home...
* Test all door and cabinet knobs. Replace mis-matched or inexpensive hardware for a quick update. Buyers rarely can get beyond a knob that comes off in their hand as they attempt to use a door.
* Take the time to paint walls, trim and ceilings. Keep adjoining rooms in the same color palette which will make your home appear larger and flow better. Clean up spills from messy painters. Hire professionals to paint mullions on windows and staircase spindles.
* Slipcover mismatched furniture in a room that requires visual unification.
* Discover ways to organize day-to-day room needs. Substantial wicker baskets or square stainless steel or brass can organize magazines, remote controls and toys. Books provide a good look, but vary them by laying some down and standing some up.
* Wallpaper is considered fill-in-the-blank decorating . No two people have the same taste in this instant decorator wannabe. If it's more than three years old, take it down and paint in a neutral color. And wallpaper boarders are out.
* Simple furniture rearrangement can bring new life to a tired space. Float sofas and coffee tables away from walls for a designer look. Use area rugs to anchor furniture groupings on bare tile and wood floors. Place groupings of candles and clear glass bowls filled with natural potpourri, fresh fruit or glass crystals on side and coffee tables.
* Make sure there is balanced lighting in every room for dusk and evening showings. Dimmers help set the right tone.
* Polish and wax hardwood floors to brighten and blend an old finish.
* Clean every surface until it shimmers and shines. Clean can seal a deal. Don't forget the windows.
* Purchase the best quality carpet pad which can make any new carpeting "cushy", and home buyers love cushy. Stay away from shag styles, buyers know it won't be around long in style cycles.
* Streamline window fashions. Heavy drapes are in the minority. Think "let the light shine in" when placing placing blinds and shades. Light and bright can overcome other issues with home.
* Freshen-up closets with closet organizers to maximize storage space and paint a neutral washable color. Make sure buyers can see the back of all closets and cupboards. Lighting is often overlooked feature in closets, but buyers will always turn on lights when viewing a closet, big or small. Thinning closets, cabinets, basements, attics and garages will also help your storage spaces look larger. If you can't part with items, rent a storage locker to hold items for decision making later.
* Don't forget the basement, dark, dirty and musty basements are a turn-off to buyers. Add extra lighting, paint the floor and vacuum out all the cobwebs. Organize storage areas and take the time to clean the washing machine and dryer. To spruce up the hot water heater and furnace, wipe down with a strong cleaner. Scrub the laundry tub and sweep left-over leaves out of exterior stairs and window wells. Run a dehumidifier to reduce basement moisture.
* Take a good look from the street or road at the front of your home. Look for shrubs that are over grown or dead and remove and replace with shrubs that are to scale to your home. Small inexpensive bushes send the wrong message.
* Limit yard ornaments to a favored few. Excess ornaments can make yards look busy and buyers might want them included in a purchase contract.
* Paint and refresh yard lights, flagpoles, mailboxes, window boxes, fences and trellis. Don't forget the swing set or play equipment.
* Replace broken bricks on terraces, cracked concrete patios and steps. Eliminate trips and falls on property showings.
* Restore screens on porches and lanai's. Dirty, rusty and ripped screens limit functionality to homebuyers.
* Don't l eave pets unattended for property showings especially when you know they can be aggressive or territorial around strangers.
* Have carpets and area rugs cleaned before showing your home to potential buyers. Those allergic to animal dander and hair, even if they can't see your pet will know when their eyes and nose start to alert them to an allergic reaction. Many will not purchase a home that poses strong allergy problems.
* Pick up dog droppings in the yard. Buyers out to take a look at the roof don't want any "take away".
* A barking dog or overly friendly cats can kill a showing. Be pro-active and take your pets off site for showings. Hire a dog walker to occupy pets if you can't be home.
source: Broker Agent News
* Test all door and cabinet knobs. Replace mis-matched or inexpensive hardware for a quick update. Buyers rarely can get beyond a knob that comes off in their hand as they attempt to use a door.
* Take the time to paint walls, trim and ceilings. Keep adjoining rooms in the same color palette which will make your home appear larger and flow better. Clean up spills from messy painters. Hire professionals to paint mullions on windows and staircase spindles.
* Slipcover mismatched furniture in a room that requires visual unification.
* Discover ways to organize day-to-day room needs. Substantial wicker baskets or square stainless steel or brass can organize magazines, remote controls and toys. Books provide a good look, but vary them by laying some down and standing some up.
* Wallpaper is considered fill-in-the-blank decorating . No two people have the same taste in this instant decorator wannabe. If it's more than three years old, take it down and paint in a neutral color. And wallpaper boarders are out.
* Simple furniture rearrangement can bring new life to a tired space. Float sofas and coffee tables away from walls for a designer look. Use area rugs to anchor furniture groupings on bare tile and wood floors. Place groupings of candles and clear glass bowls filled with natural potpourri, fresh fruit or glass crystals on side and coffee tables.
* Make sure there is balanced lighting in every room for dusk and evening showings. Dimmers help set the right tone.
* Polish and wax hardwood floors to brighten and blend an old finish.
* Clean every surface until it shimmers and shines. Clean can seal a deal. Don't forget the windows.
* Purchase the best quality carpet pad which can make any new carpeting "cushy", and home buyers love cushy. Stay away from shag styles, buyers know it won't be around long in style cycles.
* Streamline window fashions. Heavy drapes are in the minority. Think "let the light shine in" when placing placing blinds and shades. Light and bright can overcome other issues with home.
* Freshen-up closets with closet organizers to maximize storage space and paint a neutral washable color. Make sure buyers can see the back of all closets and cupboards. Lighting is often overlooked feature in closets, but buyers will always turn on lights when viewing a closet, big or small. Thinning closets, cabinets, basements, attics and garages will also help your storage spaces look larger. If you can't part with items, rent a storage locker to hold items for decision making later.
* Don't forget the basement, dark, dirty and musty basements are a turn-off to buyers. Add extra lighting, paint the floor and vacuum out all the cobwebs. Organize storage areas and take the time to clean the washing machine and dryer. To spruce up the hot water heater and furnace, wipe down with a strong cleaner. Scrub the laundry tub and sweep left-over leaves out of exterior stairs and window wells. Run a dehumidifier to reduce basement moisture.
* Take a good look from the street or road at the front of your home. Look for shrubs that are over grown or dead and remove and replace with shrubs that are to scale to your home. Small inexpensive bushes send the wrong message.
* Limit yard ornaments to a favored few. Excess ornaments can make yards look busy and buyers might want them included in a purchase contract.
* Paint and refresh yard lights, flagpoles, mailboxes, window boxes, fences and trellis. Don't forget the swing set or play equipment.
* Replace broken bricks on terraces, cracked concrete patios and steps. Eliminate trips and falls on property showings.
* Restore screens on porches and lanai's. Dirty, rusty and ripped screens limit functionality to homebuyers.
* Don't l eave pets unattended for property showings especially when you know they can be aggressive or territorial around strangers.
* Have carpets and area rugs cleaned before showing your home to potential buyers. Those allergic to animal dander and hair, even if they can't see your pet will know when their eyes and nose start to alert them to an allergic reaction. Many will not purchase a home that poses strong allergy problems.
* Pick up dog droppings in the yard. Buyers out to take a look at the roof don't want any "take away".
* A barking dog or overly friendly cats can kill a showing. Be pro-active and take your pets off site for showings. Hire a dog walker to occupy pets if you can't be home.
source: Broker Agent News
Monday, July 31, 2006
Referrals: the best source of leads
As you grow your real estate business, you should find yourself working more and more from referrals. Are you setting yourself up for success? - Kim
Know Where Your Next Lead is Coming From
Word of mouth versus working by referral
by Brian Buffini
While the summer months may be heating up, we are in a real estate market that has witnessed a significant cooling-down period. With longer listings, rising rates and an increasing inventory, we are now seeing what a normal market looks like. This is a cyclical business. Never static, market fluctuations can be expected as a matter of course.
You cannot afford to stand still and wait for business to show up at your door. This is no time to rely on word of mouth; it’s high time to get engaged with actively building your business—by referral.
Word of mouth versus working by referral may not sound like a choice between two extremes, but there is a vast difference between the two.
Word of Mouth
A word-of-mouth business is about waiting. You sit in your office hoping that the work you have done will speak for itself and people will naturally refer you to others. Now, while the work may speak for itself, the likelihood of people automatically referring you is very slim. Remember this: people do not lie awake at night worrying about how your business is going. This simply does not happen. Just as you don’t have time to worry about how all those you know are doing in their businesses, they too are busy with their own concerns and must be reminded that you appreciate their referrals.
Word of mouth is an unstructured way to do business. It lacks control in that you don’t know what a client is going to say about you—whether it’s positive or negative. For instance, a transaction goes awry for reasons you could not control. Clients know when you are doing your best and when you aren’t; they know when things cannot be controlled and when they can. Working by referral requires that you consistently perform at your best; if you don’t provide excellent service, you won’t be someone they can put their name to, and the word-of-mouth advertising you get might not be so positive.
Being passive with your business means you are not actively searching for clients. Relying on friends and family to send random referrals your way is a very unsteady foundation for your business. Everyone wishes that leads would come rolling in with minimal effort, but to build a thriving business, you need to get out there and get face-to-face with people. This is where working by referral stands out.
Working by Referral
Working by referral is the best way to generate a steady stream of high-quality clients. Keeping your name at the forefront of your clients’ minds and being associated with exceptional service is what it means to work by referral. It is a philosophy of exceeding client expectations and literally becoming their Realtor for life. It truly is the noblest way to do business—client trust based on your character and competence. When reminded, clients will sell you better than you could sell yourself, especially during the transaction. However, if they don’t know you would like them to refer others to you, it probably won’t dawn on them to do so.
You must be proactive about telling them you work by referral, not once, not twice, but repeatedly. So long as you do a great job, staying in contact with a systematic Client Appreciation Program can guarantee your working-by-referral business. Implementing systems in your business puts you in a stronger position to succeed. It’s why our clients see the incredible results they do—far above the national average.
There is a clear difference between random, passive referrals and proactive, intentional lead generation:
Word of mouth = waiting
Working by referral = finding
Word of mouth = passive
Working by referral = proactive
Word of mouth = fearful
Working by referral = certainty
Word of mouth = inconsistent
Working by referral = predictable
Everybody hopes to get referrals, but unless you have proactive systems in place, you’ve got a word-of-mouth business—not a working by referral business. The great strength in working by referral is the peace of mind in knowing you can rely on a steady stream of leads—regardless of what the market is doing. It’s up to you; passively wait for word-of-mouth clients or proactively build business by referral. RE
Brian Buffini is the founder and chairman of Buffini & Company. For more information, visit http://www.buffiniandcompany.com/.
Know Where Your Next Lead is Coming From
Word of mouth versus working by referral
by Brian Buffini
While the summer months may be heating up, we are in a real estate market that has witnessed a significant cooling-down period. With longer listings, rising rates and an increasing inventory, we are now seeing what a normal market looks like. This is a cyclical business. Never static, market fluctuations can be expected as a matter of course.
You cannot afford to stand still and wait for business to show up at your door. This is no time to rely on word of mouth; it’s high time to get engaged with actively building your business—by referral.
Word of mouth versus working by referral may not sound like a choice between two extremes, but there is a vast difference between the two.
Word of Mouth
A word-of-mouth business is about waiting. You sit in your office hoping that the work you have done will speak for itself and people will naturally refer you to others. Now, while the work may speak for itself, the likelihood of people automatically referring you is very slim. Remember this: people do not lie awake at night worrying about how your business is going. This simply does not happen. Just as you don’t have time to worry about how all those you know are doing in their businesses, they too are busy with their own concerns and must be reminded that you appreciate their referrals.
Word of mouth is an unstructured way to do business. It lacks control in that you don’t know what a client is going to say about you—whether it’s positive or negative. For instance, a transaction goes awry for reasons you could not control. Clients know when you are doing your best and when you aren’t; they know when things cannot be controlled and when they can. Working by referral requires that you consistently perform at your best; if you don’t provide excellent service, you won’t be someone they can put their name to, and the word-of-mouth advertising you get might not be so positive.
Being passive with your business means you are not actively searching for clients. Relying on friends and family to send random referrals your way is a very unsteady foundation for your business. Everyone wishes that leads would come rolling in with minimal effort, but to build a thriving business, you need to get out there and get face-to-face with people. This is where working by referral stands out.
Working by Referral
Working by referral is the best way to generate a steady stream of high-quality clients. Keeping your name at the forefront of your clients’ minds and being associated with exceptional service is what it means to work by referral. It is a philosophy of exceeding client expectations and literally becoming their Realtor for life. It truly is the noblest way to do business—client trust based on your character and competence. When reminded, clients will sell you better than you could sell yourself, especially during the transaction. However, if they don’t know you would like them to refer others to you, it probably won’t dawn on them to do so.
You must be proactive about telling them you work by referral, not once, not twice, but repeatedly. So long as you do a great job, staying in contact with a systematic Client Appreciation Program can guarantee your working-by-referral business. Implementing systems in your business puts you in a stronger position to succeed. It’s why our clients see the incredible results they do—far above the national average.
There is a clear difference between random, passive referrals and proactive, intentional lead generation:
Word of mouth = waiting
Working by referral = finding
Word of mouth = passive
Working by referral = proactive
Word of mouth = fearful
Working by referral = certainty
Word of mouth = inconsistent
Working by referral = predictable
Everybody hopes to get referrals, but unless you have proactive systems in place, you’ve got a word-of-mouth business—not a working by referral business. The great strength in working by referral is the peace of mind in knowing you can rely on a steady stream of leads—regardless of what the market is doing. It’s up to you; passively wait for word-of-mouth clients or proactively build business by referral. RE
Brian Buffini is the founder and chairman of Buffini & Company. For more information, visit http://www.buffiniandcompany.com/.
Friday, July 28, 2006
Prospect Follow-Up: 3 Common Mistakes
This is excerpted from an article by Craig Proctor (http://www.brokeragentnews.com/news/residential/2006_7/7_21_2006_wm_1153540009.html), from the Broker Agent News website. Are you making any of these mistakes? It could be costing you business. - Kim
Mistake # 1: Expecting a prospect to call back
I had a guy on the line who was ready to list his house, and I was trying to nail him down for an appointment. He was putting me off for some reason—either he had to check his daytimer, or he had to check with his wife to see what time was good for her. Whatever his reason was, I didn't push it. I told him to call me back with a good time to meet.
Well, he didn't call me back and I guess I forgot about it. In my mind, I guess, I'd already converted him and we were simply down to the formality of when to meet. But when I checked the hot sheets about a week later, I saw that he had listed with another agent before I had a chance to call him back.
My big mistake was leaving the whole thing in his hands. I should not have let him off the phone without setting a meeting time. What I should have done was set a tentative date with him so the onus on call back was now on his shoulders. If I'd said "Okay, why don't we tentatively say Thursday at 3 pm, and if that turns out to be a problem for you, give me a call back. Otherwise I'll be there Thursday at 3 pm", now suddenly it's his responsibility to firm that up. I don't have to call him back. He knows that unless he calls me back, I'm going to show up at his house Thursday at 3 pm.
You should do the same in your business. If you find that a prospect is putting you off for some reason, arrange a tentative time so that the onus is now on them.
Mistake # 2: Delaying a prospect who is ready to list
The second mistake I made was putting off a lady who was ready to list. I had called this lady on a Wednesday night to follow up on a special report request she had made. She admitted that she was ready to list her house and wondered if I were free that evening. I can't remember why I wasn't—it wasn't convenient or I just didn't feel like going out at that time. Whatever it was, I set up a meeting with her the following Monday.
Well, Monday morning I got an email from her to cancel the appointment because she'd listed with another agent on Sunday night. So my big mistake this time was putting off someone too long who was ready to list. If your prospect is good, make your appointment as close to "now" as possible—a half hour after your telephone conversation would be good. The more time that elapses, the more things that can go wrong.
Mistake # 3: Lacking Clarity when Communicating
I have modified a line in my call back script that used to say: "Would you prefer to buy first or sell first?". What I found is that my prospects didn't really understand this. They'd answer that they supposed they really wanted to do both at the same time—they didn't really understand what I was asking them. I thought this was just me, but I was listening to some tapes of some of my coaching members the other day (as I reviewed and critiqued their call backs) and I found that their prospects were saying the same thing.
The new wording attempts to clarify the issue by saying it this way: "Would you prefer to make an offer on your next home before you list your present home for sale, or do you want to sell the home you're in before you make an offer on your next home?" Clearly, what you're trying to establish is whether you should be treating them as a buyer or a seller.
When asking this question, make this distinction clear to them. Ask them whether they think they'd like to list their present home first, before they start looking for their next home (i.e. get a sense of outside interest in their home before they commit to moving), or whether they want to start looking for their next home first before they actually take the step of listing their current home (i.e. get a sense of their interest in what is out there before they commit to moving.) Their answer to this question is important as it will help you understand which offer to communicate first. Making the correct offer to prospects should not be guesswork. If you ask them, they'll tell you.
Mistake # 1: Expecting a prospect to call back
I had a guy on the line who was ready to list his house, and I was trying to nail him down for an appointment. He was putting me off for some reason—either he had to check his daytimer, or he had to check with his wife to see what time was good for her. Whatever his reason was, I didn't push it. I told him to call me back with a good time to meet.
Well, he didn't call me back and I guess I forgot about it. In my mind, I guess, I'd already converted him and we were simply down to the formality of when to meet. But when I checked the hot sheets about a week later, I saw that he had listed with another agent before I had a chance to call him back.
My big mistake was leaving the whole thing in his hands. I should not have let him off the phone without setting a meeting time. What I should have done was set a tentative date with him so the onus on call back was now on his shoulders. If I'd said "Okay, why don't we tentatively say Thursday at 3 pm, and if that turns out to be a problem for you, give me a call back. Otherwise I'll be there Thursday at 3 pm", now suddenly it's his responsibility to firm that up. I don't have to call him back. He knows that unless he calls me back, I'm going to show up at his house Thursday at 3 pm.
You should do the same in your business. If you find that a prospect is putting you off for some reason, arrange a tentative time so that the onus is now on them.
Mistake # 2: Delaying a prospect who is ready to list
The second mistake I made was putting off a lady who was ready to list. I had called this lady on a Wednesday night to follow up on a special report request she had made. She admitted that she was ready to list her house and wondered if I were free that evening. I can't remember why I wasn't—it wasn't convenient or I just didn't feel like going out at that time. Whatever it was, I set up a meeting with her the following Monday.
Well, Monday morning I got an email from her to cancel the appointment because she'd listed with another agent on Sunday night. So my big mistake this time was putting off someone too long who was ready to list. If your prospect is good, make your appointment as close to "now" as possible—a half hour after your telephone conversation would be good. The more time that elapses, the more things that can go wrong.
Mistake # 3: Lacking Clarity when Communicating
I have modified a line in my call back script that used to say: "Would you prefer to buy first or sell first?". What I found is that my prospects didn't really understand this. They'd answer that they supposed they really wanted to do both at the same time—they didn't really understand what I was asking them. I thought this was just me, but I was listening to some tapes of some of my coaching members the other day (as I reviewed and critiqued their call backs) and I found that their prospects were saying the same thing.
The new wording attempts to clarify the issue by saying it this way: "Would you prefer to make an offer on your next home before you list your present home for sale, or do you want to sell the home you're in before you make an offer on your next home?" Clearly, what you're trying to establish is whether you should be treating them as a buyer or a seller.
When asking this question, make this distinction clear to them. Ask them whether they think they'd like to list their present home first, before they start looking for their next home (i.e. get a sense of outside interest in their home before they commit to moving), or whether they want to start looking for their next home first before they actually take the step of listing their current home (i.e. get a sense of their interest in what is out there before they commit to moving.) Their answer to this question is important as it will help you understand which offer to communicate first. Making the correct offer to prospects should not be guesswork. If you ask them, they'll tell you.
Wednesday, July 26, 2006
Are you prepared to win their business?
Smart consumers will interview several agents before choosing someone to work with. About.com recommends that each buyer/seller ask the following of their agent before chosing who to work with. Are you prepared to answer them?
1) How Long Have You Been in the Business?
The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.
2) What is Your Average List-Price-to-Sales-Price Ratio?
Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.
3) What is Your Best Marketing Plan or Strategy for My Needs?
Buyers will want to know:
• How will you search for my new home?
• How many homes will I likely see before I find a home I want to buy?
• Will I be competing against other buyers?
• How do you handle multiple offers?
• Do you present offers yourself?
Sellers will want to know:
• Specifically, how will you sell my home?
• What is your direct mail campaign?
• Where and how often do you advertise?
• Will you show me a sample flyer?
• How do you market online?
4) Will You Please Provide References?
Everybody has references. Even new agents have references from previous employers.
• Ask to see references.
• Ask if any of the individuals providing references are related to the agent.
• Ask if you can call the references with additional questions.
5) What Are the Top Three Things That Separate You From Your Competition?
A good agent won't hesitate to answer this question and will be ready to fire off why she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are:
• Honest and trustworthy
• Assertive • Excellent negotiators
• Available by phone or e-mail
• Good communicators
• Friendly
• Analytical
• Able to maintain a good sense of humor under trying circumstances
6) May I Review Documents Beforehand That I Will Be Asked to Sign?
A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.
Buyer will ask for copies of the following:
• Buyer's Broker Agreement (is it exclusive or non-exclusive?)
• Agency Disclosures
• Purchase Agreement
• Buyer Disclosure
Sellers will ask to see:
• Agency Disclosure
• Listing Agreement
• Seller Disclosures
7) How Will You Help Me Find Other Professionals?
Let the real estate agent explain to you who she works with and why she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.
8) How Much Do You Charge?
Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.
9) What Kind of Guarantee Do You Offer?
If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind her service to you? What is her company's policy about canceled agreements? Has anybody ever canceled an agreement with her before?
10) What Haven't I Asked You That I Need to Know?
Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take her time with you -- to make sure you feel comfortable and secure with her knowledge and experience. She should know how to listen and how to counsel you, how to ask the right questions to find out what she needs to know to better serve you.
Source: About.com
1) How Long Have You Been in the Business?
The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.
2) What is Your Average List-Price-to-Sales-Price Ratio?
Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.
3) What is Your Best Marketing Plan or Strategy for My Needs?
Buyers will want to know:
• How will you search for my new home?
• How many homes will I likely see before I find a home I want to buy?
• Will I be competing against other buyers?
• How do you handle multiple offers?
• Do you present offers yourself?
Sellers will want to know:
• Specifically, how will you sell my home?
• What is your direct mail campaign?
• Where and how often do you advertise?
• Will you show me a sample flyer?
• How do you market online?
4) Will You Please Provide References?
Everybody has references. Even new agents have references from previous employers.
• Ask to see references.
• Ask if any of the individuals providing references are related to the agent.
• Ask if you can call the references with additional questions.
5) What Are the Top Three Things That Separate You From Your Competition?
A good agent won't hesitate to answer this question and will be ready to fire off why she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are:
• Honest and trustworthy
• Assertive • Excellent negotiators
• Available by phone or e-mail
• Good communicators
• Friendly
• Analytical
• Able to maintain a good sense of humor under trying circumstances
6) May I Review Documents Beforehand That I Will Be Asked to Sign?
A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.
Buyer will ask for copies of the following:
• Buyer's Broker Agreement (is it exclusive or non-exclusive?)
• Agency Disclosures
• Purchase Agreement
• Buyer Disclosure
Sellers will ask to see:
• Agency Disclosure
• Listing Agreement
• Seller Disclosures
7) How Will You Help Me Find Other Professionals?
Let the real estate agent explain to you who she works with and why she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.
8) How Much Do You Charge?
Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.
9) What Kind of Guarantee Do You Offer?
If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind her service to you? What is her company's policy about canceled agreements? Has anybody ever canceled an agreement with her before?
10) What Haven't I Asked You That I Need to Know?
Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take her time with you -- to make sure you feel comfortable and secure with her knowledge and experience. She should know how to listen and how to counsel you, how to ask the right questions to find out what she needs to know to better serve you.
Source: About.com
Friday, July 21, 2006
Coping with a shifting real estate market
What are the signs that your business may be experiencing slow death?
Determine whether each of the following statements is "true" or "false" for you.
1. I regularly attend conferences and training in search of innovations that will give me a competitive edge.
2. I have mastered the scripts and dialogues that allow me to obtain listings at the right price and to obtain price reductions where necessary.
3. I have an Internet marketing program that includes both organic and pay-per-click strategies.
4. My assistant and/or I respond to all Web and telephone inquiries as soon as possible, but always before the end of the business day.
5. I use an automated lead follow-up program that allows me to respond to Web inquiries instantaneously.
6. I either own or am considering purchasing a tablet computer so I can go paperless within the next 12 months.
7. My Web site consistently generates good leads that I convert into closed business.
8. I track market statistics and have mastered the scripts and dialogues that allow me to work effectively with both buyers and sellers.
9. I publish a regular e-mail newsletter that goes out to all of my clients as well as to my sphere of influence.
10. I use blogging to build my Web site traffic.
SCORING: The more "false" answers you have, the more likely your business will suffer from the deep changes taking place in our industry. While it's not necessary to do all of the items outlined above, failing to do them places you at a competitive disadvantage.
Monday, July 17, 2006
Can Myspace.com and other Social Networking sites help your RE Business?
The media have been making a big deal recently about social networking sites such as Myspace. They tend to focus on how it is being used by teenagers, but their articles usually leave out any serious discussion about how social networking sites can be used to help spread the word about your Real Estate business.
Below is a link to an article that talks about Social Networking and how you can use it for Real Estate.
Social Networking in Real Estate
http://www.raincityguide.com/2006/05/02/social-networking-in-real-estate/print/
Tuesday, July 11, 2006
Simple Steps to Increase Your Marketing ROI
The article below was writen by our marketing manager here at Z57...She makes some good points - Kim
10 Simple Secrets to Explode the Return on Your Internet Marketing Buck
by Melani Broman
Internet marketing has many powerful advantages over traditional advertising. Home buyers and sellers are actively looking for your services online and customers who find you online are the warmest, most qualified leads. Measurable results can be felt instantly and the average cost of a lead is often lower than that of other media.
[stat: Industry reports predict that real estate ad spending in online media will surpass print advertising in 2009]
Read these top 10 tips and become a marketing genius. Never say "I think" unless you don't. Be certain and improve online profits and optimize your Internet investment immediately.
1. Become truly "marketing minded." When agents think of marketing the majority think of sell, sell, sell. There is another dimension, branding, ensuring that you meet customer needs in a way that is different from your competition. Ask yourself: Do my customers really see me as different from my closest competitors? Use your website as one of the tools to differentiate yourself. Provide reports and local resources and become the local expert.
2. Register optimal domain names. Registering domain names has become as easy as buying a gallon of milk at the grocery store. Register your name, and variations unique to the area. Most importantly, make sure to secure www.YourCityHomes.com, www.YourFarmingArea.com and all other variations. We've seen agents register a domain and have their top competitor register the '.net', so don't forget to register .com, .net, .biz, regardless if you use these domains.
You are not alone if you have a domain name that looks similar to this - www.youragency.com/office3/agentname. This is not an optimal domain, it's too long, hard to remember and doesn't support your overall brand identity.
3. Create a user friendly website design. Make your website is easy to read, navigate and find. You will still see a lot of agent websites with black backgrounds and small yellow text - this is not easy on the eyes. Focus on usability first, with your visitors goals in mind so they can easily navigate through your site. If your visitors cannot find what they want quickly and easily, they will simply go to your competitor who is just a click away.
[stat: Of homebuyers, 57% select the first agent they visit]
4. Include advanced home search functions on your website. The top reason consumers visit real estate websites in the first place is to SEE LISTINGS. A lot of websites display the whole MLS, how are you separating your home search function from other agents? Get IDX, provide free home updates via email, add rich media virtual tours and take advantage of the many enhanced mapping capabilities on the market.
5. Optimize your site with rich content, meta tags and body copy. Understanding and selecting the most effective keywords that potential visitors are using to arrive at your website is essential to optimize your Internet investment. Use tools like WordTracker and prepare you list of keywords. Remember the importance of keyword prominence and place your keyword phrases early in the body text of the page. Try to craft the beginning text so that it is appropriate to be used as a description of your site. Using techniques such as these will increase your chances of being ranked in the top search engines, thus increasing the number of visits to your site.
[stat: 74% of today's consumers use the Internet to search for homes versus 52% who use the newspaper.]
6. Accelerate your website traffic. Putting a website online with no marketing strategy is money down the drain. One step to driving traffic to your site is search engine optimization and gaining top search engine rankings, which can often take months. Agents who are looking for immediate results can use pay for performance traffic programs. For example, you can bid on local areas or keywords and receive website inquiries from potential buyers in those targeted areas within 72 hours.
7. Measure Link Popularity. Measure and monitor with tools like MarketLeap. Link Popularity refers to the quality and the quantity of external links to your website and it is one of the most important criteria used by the search engines to determine your site's ranking. The benefits of increasing your site's Link Popularity are:
8. Evaluate where your website stands now. Measuring your Internet marketing investment and website conversion will help you to improve your returns in the future. Set clearly defined objectives so you can go back and compare against what you hoped to obtain over the year. For example, you set a goal to obtain 30 hot leads from your website in the next 60 days and to close 3 new homes.
9. Invest in a lead management system. Consumers are becoming increasingly more demanding when it comes to response time. They want quality information and fast. Take advantage of systems that do the work for you, while you are out showing homes. Automatically send out new listings and email updates, keep your prospects engaged and build long term relationships.
[stat: 65% of real estate consumers on the Internet expect a response time of four hours or less to their online inquiries]
10. Partner with a real estate Internet marketing expert. Home buyers and sellers are using the Internet at alarming rates. In the long run, agents who don't embrace technology will get left behind. Most successful real estate agents and brokers are turning to marketing experts to assist them with their Internet marketing strategies. It is essential to partner with a company that offers a complete agent solution, campaign management, website creation and lead generation. Do not choose specialists who do not fully understand the complex needs of agents.
It goes without saying, the Internet has had a tremendous impact on the real estate industry. Take a look at your current internet marketing strategies and compare those to what your top competitor is doing. The truth is that Internet consumers are plowing into real estate portal sites looking for your listings. You just need to have a proactive Internet marketing strategy.
About the Author: Melani Broman is Online Marketing Manager at Z57 Internet Solutions, a real estate Internet marketing company based in San Diego, California. Founded in 1998 the company employs over 200 individuals and specializes in complete eMarketing campaign management, website creation and lead generation. Discover 17 reasons why most real estate websites fail AND find out what others are doing to make their websites lead generating machines here. To reach Melani, please email melani@z57.com
10 Simple Secrets to Explode the Return on Your Internet Marketing Buck
by Melani Broman
Internet marketing has many powerful advantages over traditional advertising. Home buyers and sellers are actively looking for your services online and customers who find you online are the warmest, most qualified leads. Measurable results can be felt instantly and the average cost of a lead is often lower than that of other media.
[stat: Industry reports predict that real estate ad spending in online media will surpass print advertising in 2009]
Read these top 10 tips and become a marketing genius. Never say "I think" unless you don't. Be certain and improve online profits and optimize your Internet investment immediately.
1. Become truly "marketing minded." When agents think of marketing the majority think of sell, sell, sell. There is another dimension, branding, ensuring that you meet customer needs in a way that is different from your competition. Ask yourself: Do my customers really see me as different from my closest competitors? Use your website as one of the tools to differentiate yourself. Provide reports and local resources and become the local expert.
2. Register optimal domain names. Registering domain names has become as easy as buying a gallon of milk at the grocery store. Register your name, and variations unique to the area. Most importantly, make sure to secure www.YourCityHomes.com, www.YourFarmingArea.com and all other variations. We've seen agents register a domain and have their top competitor register the '.net', so don't forget to register .com, .net, .biz, regardless if you use these domains.
You are not alone if you have a domain name that looks similar to this - www.youragency.com/office3/agentname. This is not an optimal domain, it's too long, hard to remember and doesn't support your overall brand identity.
3. Create a user friendly website design. Make your website is easy to read, navigate and find. You will still see a lot of agent websites with black backgrounds and small yellow text - this is not easy on the eyes. Focus on usability first, with your visitors goals in mind so they can easily navigate through your site. If your visitors cannot find what they want quickly and easily, they will simply go to your competitor who is just a click away.
[stat: Of homebuyers, 57% select the first agent they visit]
4. Include advanced home search functions on your website. The top reason consumers visit real estate websites in the first place is to SEE LISTINGS. A lot of websites display the whole MLS, how are you separating your home search function from other agents? Get IDX, provide free home updates via email, add rich media virtual tours and take advantage of the many enhanced mapping capabilities on the market.
5. Optimize your site with rich content, meta tags and body copy. Understanding and selecting the most effective keywords that potential visitors are using to arrive at your website is essential to optimize your Internet investment. Use tools like WordTracker and prepare you list of keywords. Remember the importance of keyword prominence and place your keyword phrases early in the body text of the page. Try to craft the beginning text so that it is appropriate to be used as a description of your site. Using techniques such as these will increase your chances of being ranked in the top search engines, thus increasing the number of visits to your site.
[stat: 74% of today's consumers use the Internet to search for homes versus 52% who use the newspaper.]
6. Accelerate your website traffic. Putting a website online with no marketing strategy is money down the drain. One step to driving traffic to your site is search engine optimization and gaining top search engine rankings, which can often take months. Agents who are looking for immediate results can use pay for performance traffic programs. For example, you can bid on local areas or keywords and receive website inquiries from potential buyers in those targeted areas within 72 hours.
7. Measure Link Popularity. Measure and monitor with tools like MarketLeap. Link Popularity refers to the quality and the quantity of external links to your website and it is one of the most important criteria used by the search engines to determine your site's ranking. The benefits of increasing your site's Link Popularity are:
- Improved search engine rankings, particularly on Google, Yahoo and MSN.
- Direct increase in traffic via links from other websites. Ask for reciprocal links through your business network. Real Estate is largely based on building a strong referral network, which will help you grow your business.
8. Evaluate where your website stands now. Measuring your Internet marketing investment and website conversion will help you to improve your returns in the future. Set clearly defined objectives so you can go back and compare against what you hoped to obtain over the year. For example, you set a goal to obtain 30 hot leads from your website in the next 60 days and to close 3 new homes.
9. Invest in a lead management system. Consumers are becoming increasingly more demanding when it comes to response time. They want quality information and fast. Take advantage of systems that do the work for you, while you are out showing homes. Automatically send out new listings and email updates, keep your prospects engaged and build long term relationships.
[stat: 65% of real estate consumers on the Internet expect a response time of four hours or less to their online inquiries]
10. Partner with a real estate Internet marketing expert. Home buyers and sellers are using the Internet at alarming rates. In the long run, agents who don't embrace technology will get left behind. Most successful real estate agents and brokers are turning to marketing experts to assist them with their Internet marketing strategies. It is essential to partner with a company that offers a complete agent solution, campaign management, website creation and lead generation. Do not choose specialists who do not fully understand the complex needs of agents.
It goes without saying, the Internet has had a tremendous impact on the real estate industry. Take a look at your current internet marketing strategies and compare those to what your top competitor is doing. The truth is that Internet consumers are plowing into real estate portal sites looking for your listings. You just need to have a proactive Internet marketing strategy.
About the Author: Melani Broman is Online Marketing Manager at Z57 Internet Solutions, a real estate Internet marketing company based in San Diego, California. Founded in 1998 the company employs over 200 individuals and specializes in complete eMarketing campaign management, website creation and lead generation. Discover 17 reasons why most real estate websites fail AND find out what others are doing to make their websites lead generating machines here. To reach Melani, please email melani@z57.com
Friday, June 30, 2006
Is your business "Shrink-Proof"?
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
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
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.
Subscribe to:
Posts (Atom)