We all know how hard it is to find potential Realtor clients in this game we call real estate. In the past we've been told to buy billboards, pay for radio ads, and develop mailer campaigns that would put mail order catalogs to shame. We are taught to go after For Sale By Owner sellers with the same vengeance that FDR went after Japan following Pearl Harbor . The question remains, why do most Realtors quit within the first 2 years if these marketing tactics are such full proof methods?
When I started my real estate company www.jkrrealty.com I made all the same mistakes. We ran out and signed up with the local radio station just like we were taught. We approved a $15,000 budget and waited for the customers to roll in. After 6 months and one phone call, we threw in the towel on radio advertising. However, there was one benefit. When we went to the door to talk to a potential client they recognized our company. But radio alone wasn't enough to get them to pick up the phone and call us.
The truth is, most seasoned Realtors will tell you that those techniques help to get your name out there but they do not guarantee a client base. That is still, and will likely always remain an art to be polished on the doorstep of every potential client, at least until you become one of the big boys. It is my experience that clients do not sign up with you because they have seen your billboard or heard your radio spot. It may get you in the door, but, you still have to build trust on a personal level. That is something that can not be done with a mailer campaign. You have to pick up the phone and get out of the car if you want to become a titan in the real estate business. At some point in your career you will have to make the choice of removing the fear of rejection.
With that said, now that you are in the door, you will be required to have a tremendous knowledge of your competition and the benefits of your fee structure. The internet makes information about FSBO, flat fee, and discount services available at the touch of a button. If you are not prepared to defend your company in a war like atmosphere and turn the client into a believer based on your experience, personality, and fee structure, you will likely not last in the business. Without this, it won't matter how many leads you come across.
I digress though. Back to lead generation. In recent years Realtors have had the option to purchase leads from a variety of internet sources. I have some experience with this type of model. It never made since to me to pay $400 a month for a lead that they promised to sell to only 2 or 3 other agents. For that kind of money shouldn't we be granted exclusivity to that lead? We are given a guaranteed number per month to make us feel like we are getting our moneys worth. Less than 1 of those leads per month closes per Agent I've been told. If you get one closing every two months your cost is $800. When you split the commission up four ways you can see how those leads become extremely expensive. How do we know that lead isn't a 15 year old kid playing around on their parent's computer? It is fair to say that some internet leads sources are better than others. But, if you plan on paying one of these services for leads, make sure you are realistic about the true cost.
If buying leads isn't a guarantee, and traditional marketing strategies also fail if you don't make personal contact, how do you market in the new world of the internet? That is the million dollar question. We decided what made the most sense was to create a resource center that provided all the info a client needed with the service and support of a professional real estate network to back it up. We decided it made alot more sense to locate professional Realtors in each market instead of following the path others have taken by selling the lead. We would focus on generating the lead and we'll let them do what they do best which is to service the client. We thought that we would find the hardest working and most ethical Realtor and send them every lead we got from their market. We'd make sure our intersts were aligned by setting up a referral arrangement so that we got paid only when they got paid. Therefore we were both in pursuit of the same goal, customer service! And that was the start of the www.sellmyhouse.com Affiliate Program.
The internet allows a seller to advertise their house for same cost as one ad in the newspaper, the client can have unlimited access to a website that describes in detail property features along with a wide variety of pictures, virtual tours, and other neat interactive tools. How is a newspaper supposed to compete with that? More specifically, the future of real estate will be in capturing and controlling leads created via the internet, without having to count on outside sources. The main issue with this of course is the tremendous cost of building and maintaining a website, or websites. To capture significant market share you will need both branded and unbranded websites. There are a thousand companies on the internet that will gladly walk you down this path for a fee. The websites will need to provide content to the client and provide you with lead capture technology. It sounds expensive because it is. Most cannot afford to make this kind of commitment to their marketing budget. Now throw in search engine optimization to the tune of $1000 to $1500 per month so that a client can actually find your websites after you have spent a small fortune designing them. It can be a daunting task to say the least.
What are your options then? I'd suggest choosing a marketing company that combines a tremendous marketing system with unlimited leads per month. Some will be good, some will not. The point being, it costs you nothing upfront so what do you care. Do me a favor though, dont complain that every lead isnt waiting at the door for you with a listing agreement in hand. The internet is great for creating opportunity. You will be the determining factor though. Place a call, leave a message, send an email. How hard is that. The people that respond to you are the clients you want to work with. Doesnt it make more sense to work with a marketing company that charges you nothing upfront for the lead, offers you every lead in your market, and works with you to offer income opportunities in a variety of areas?
Anyway, thats what we are striving to accomplish with the Affiliate Program at www.sellmyhouse.com.
