Welcome to world of online marketing. Everybodyâ€™s doing it! I recognized that Web 2.0 had legs when I watched a model leverage a Myspace profile into a TV show. I choose to wrangle the herd by blogging.
While Iâ€™ve had some success, it didnâ€™t come easy. Many real estate agents and mortgage originators believe that blogging is the â€ślittle purple pillâ€ť, prescribed to cure all their marketing woes. Others subscribe to business models like HomeGain, in hopes that it has the â€śmagic tonicâ€ť.
I believe that real estate agents should have marketing systems to generate enough interest to meet their annual business goals. I think you should use the Millionaire Real Estate Agent model. That model, perfected by Gary Keller, is, without reservation, the finest way to market a real estate practice to would-be buyers and sellers.
Itâ€™s simple. Youâ€™ll close one transaction for every twelve â€śmetsâ€ť you have in your database. If youâ€™re practicing the principle of â€śbuying brain cellsâ€ť, through systematic multi-media marketing, you can eliminate blogging and HomeGain as part of your marketing plan.
Let me show you how simple it is to make $200,000 in real estate brokerage:
â€˘ Average Price Point = $200,000
â€˘ Average Gross Commission Income (GCI) Per Transaction = $5,000 (assuming 2.5% commission)
â€˘ Commission Split = 70%
â€˘ $60,000 annual expenses
â€˘ $260,000/.7 = $371,000
â€˘ $371,000/$5,000 = 74.2 transactions
Youâ€™ll need 75 transactions to meet your annual income goal. You only need 12 times that number to guarantee your ultimate success. That means that you need 900 â€śmetsâ€ť in your database. You see? Itâ€™s simple!
Itâ€™s simple but it ainâ€™t easy.
How many of you have 900 â€śwarm & fuzziesâ€ť in your database? Not too many hands up. Donâ€™t worry, my hand isnâ€™t raised, either. While you and I might approach this problem differently, we share a lot of the same frustrations.
Critics of lead generation models complain about the â€śqualityâ€ť of those leads. Let me assure you that I have the same challenges. In 18 months, my social media marketing efforts have brought over 1500 inquiries. Those inquiries resulted in about 100 loans. Most were people fishing for free advice, shopping, or testing the waters.
Does that sound familiar?
Soâ€¦letâ€™s get back to my title. I think any real estate practitioner should aspire to entrepreneurship. The reward of entrepreneurship is independence. While I hate the idea of â€śbuying a clientâ€ť, Iâ€™m a pragmatist. You gotta pay your dues. Building your database to 900 â€śwarm & fuzzyâ€ť names takes time.
If HomeGain can help you get to that number faster, you should absolutely have them as part of your marketing plan. Critics will suggest that blogging is free. I have over 500 articles written on ten different websites; I can assure you that my efforts werenâ€™t free. Time is, after all, money.
Soâ€¦whatâ€™s the answer to the big question? Should you Use HomeGain or Blog?
Thatâ€™s what weâ€™ll discuss here. Iâ€™m biased but I think I have something to offer you about marketing. Iâ€™ve been marketing consumer financial services since 1989 and been around the real estate industry since my mother helped Rick MacLeish buy a home, in Cherry Hill, NJ. Iâ€™m a student of marketing from the Russell Shaw, Dan Kennedy and Jay Levinson â€śold skoolsâ€ť.
This ainâ€™t my first rodeo. Iâ€™m here to make the frog jump so I want your comments.
I donâ€™t want you to agree with me; I want you to challenge me.
Web 2.0 is all about interaction. I expect to learn more from the comments than I offer in the articles. In the end, I want us both to cross the finish line, regardless of how we get there.