In my last post I drew some ugly graphics that pointed out the flaws with the real estate sales funnel, and made some vague recommendations about building a database. Now let’s get into some of the gritty details of what you should really be doing with all those names, phones, emails, and addresses.
First let’s wrap our heads around a concept that is absolutely crucial to getting ahead of the curve.
Were not buying leads, we’re building a list of subscribers to our content.
Real estate is a sales oriented business, and that’s why most RE pros think like salespeople. They wan’t to make money today, and are more concerned with closing that next deal than how they’re going to retire. We judge leads on their willingness to close today. The smarter folks have figured out that this level of hotness in a lead is not frequent, and they create processes to nurture, and follow up over the long term. This is an excellent practice, but when we slick our hair back and get 100% into sales mode some inefficiencies start to occur.
We over focus on response vs engagement, and our brand suffers.
One of my hero’s David Ogilvy once said that 90% of advertising was totally ineffective. I’d lean more towards 99%. Getting leads to respond to emails/ads/FB posts/etc. is incredibly difficult no matter how many tricks you add to make them feel like it’s really you taking time out of your busy day. When we focus solely on response we tend to get typical response rates. 0-10%. This is great for uncovering new sales opportunities, but the long term result is the other 90% of our database slowly decays, and eventually dies.
My recommendation is to do what any major brand does, and add some more marketing to your follow up mix that is designed to keep users engaged with your brand, and not just ask for the sale once a month. Here’s how you do it…
Mass Content Distribution (not just email)
Here’s a great way to think about Mass Content Distribution; it’s unapologetically marketing. We’re not trying to pretend that it’s us sending a one off email, because frankly to make it suitable to send to a large audience requires dilution of content to the point where it just becomes white noise.
Mass emailing our database can largely resemble the newsletter. A concept most old school RE Pro’s are very familiar with. Now when it comes to the content here are some key things to remember…
- No cherry pie recipes: Steve Harney with Keeping Current Matters has been a champion of this concept. Remember what you are is a Real Estate Professional. Your clients expect, and want to hear your thoughts on REAL ESTATE.
- Create a path for engagement: This is where things get confusing for most. Our sales instincts tell us to say, “sooo uhh if ya need anything CALL ME NOW!” What we need to understand is that our content needs a path back to the shopping experience. Are you talking about a how XYZ market has jumped 3% over the last month, and inventory is moving quickly? Then you should be linking back to an experience where users can start shopping for those homes. That sounds really simple, because it actually is. More shopping engagement = an increased likelihood of a request for your services. Think of this as a top goal for newsletter content. Get people off the fence, and back in the market place. This will create more opportunities for us to call/text/email personally with a sale in mind.
- Build your brand with information: Back to point #1. A number of websites can send users new homes on the market, and price reductions. What they can’t do is provide that detailed local knowledge of a local professional. People buy with salespeople who are convincing, but they recommend sales people who are knowledgeable.
- Never let them off the hook: Sold them a home? Listed their property? Great! Now what’s your strategy to keep them engaged, keep your brand top of mind, and insure that they’ll stay with you forever? This is again where our sales mentality drops the ball, and brand marketing comes into play. Might be cliche, but Coca-Cola is a great example of this in practice. They’re not focused on trying to get you to buy or try a coke. (at least not in the states) They’re focused on making Coke a part of your life, your association with refreshment, and keeping you loyal. Now we don’t all have multi-billion dollar budgets for TV ads, but we do have access to systems that enable us to continuously market our brand over the long term. This can’t be done with a drip campaign aimed at just 1 lead. This must be done by making a commitment to create wonderful content using points 1-3 above, and distributing that content for the long haul.
Building a list of subscribers gives us a continuous, reliable, and less competition sensitive flow of business. That dream you have of selling this business and pursuing your passion for whatever starts right here.
If you’re reading this, and thinking “damn that sounds like a lot of work, and I really need to close a deal today.” then frankly you’re just not at this level yet. If you don’t have technology that enables you to create, segment, and market to a list of subscribers then you should probably first go work for someone who does. This is where the real estate industry is heading.
The barrier to entry is being raised higher with technology, and those who aren’t ready to invest in the resources and strategy needed to do so will either work for someone else (which isn’t a bad thing folks) or just be pushed out completely. Take the first steps by evaluating what your total database looks like, what you’re doing to keep them engaged, and how you’re actually bringing them to the market; not just staying in touch.
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