Marketing on the Internet

Do The Exact Opposite

2010-04-14T18:25:00.000-07:00

40 years ago when I was trying to get a handle on how to save some money and stop spending every nickle I made I read a lot of books about what to do. Didn't pay too much attention to any of them, but one phrase in one book stuck like glue.

It was in one of Gerald Loeb's books on investment (Here's a search list of some of his books). He said "Figure out what 90% of the people are doing and do the exact opposite".

Boy, does that apply now. When everyone panics and pulls in their horns that's when there is opportunity everywhere. Especially for real estate agents and brokers.

Right now the housing market has taken a monstrous tumble, the stock market is in disarray, and many thousands of real estate brokers and agents have closed their doors and more thousands are looking nervously at their production and are getting ready to bolt. Advertising budgets are being cut to the bone. Not knowing what will happen in the economy in the near term has taken its toll on the timid.

Without a doubt more financial uncertainty is in our near term future. Some more are going to fail and MANY OF THEM ARE YOUR COMPETITION. When the smoke clears, those who have weathered the storm will have less competition as the pent up demand for real estate makes itself felt.

Now is the time to position yourself to be a front runner in the months and years to come.

It's hard to give up a style or routine that has worked well for us in the past. Still that's a key to success in this market. I once asked a successful novelist for tips on writing. He said give up your "little darlings". I asked what he meant and he explained he mean those favorite phrases we think are so clever but that our audience may be mortally tired of.

Example of the Market in Carmichael for one year

2010-04-13T07:40:00.000-07:00

What is a web visitor worth?

2008-09-05T14:54:00.000-07:00

Overview

Millions of words and thousands of articles have been written about search engines and other ways to get leads and sales from the Internet. Mostly all of this material has only confused the issue for real estate web site owners. The general idea that if enough random people visit your site then some of them will be interested in property in your specific area is absurd.

Goal

The goal of this article is to give real estate site owners a basis to evaluate the benefit or non-benefit to them of investing time and money into search engine positioning, pay per click advertising or otherschemes to augment their web traffic. There is more on this subject at: www.SilkShorts.com.

Basics

The keystone of evaluation is to come to a determination of exactly what a demographically targeted visitor to your site is worth to your bottom line. Moreover it means discarding the idea held by Madison Avenue type advertisers that "eyeballs" are the name of the game.

You want to have as many potential buyers and sellers on your site as you can afford and you want a site that will appeal to them and result in their contacting you instead of your competition.

Random, non-targeted visitors to your site are useless and worth absolutely nothing at all. However, the opposite is true of potential clients that visit the site. They have real value to you--how much each is worth is difficult to ascertain, but worth the effort.

Evaluating -- First Method

If you believe that flying by the seat of your pants is a great business plan, then you're wasting your time reading this. If, on the other hand, you are the type of business person who "does the homework", read on.

To evaluate any type of advertising means finding a way to measure results, hopefully to determine the return on investment or cost of sale for your product or service. In real estate the bottom line, the end of the evaluation process is a quantitative measure of commissions earned, or gross sales realized as a result of the subject program.

Relating that to your web site let's work backwards and find out what the value is of a visitor to your website. If we can estimate the value of one average visitor, then we can begin to evaluate various methods of directing visitors to a web site.

The following numbers are for example only. Each person must determine their own numbers in their own way, but, follow this reasoning…

The commission earned on an average sale for our imaginary broker is $10,000.

To make that sale he or she must show property to 5 average prospects.

To obtain 1 prospect via the web site, 300 demographically targeted average prospects must visit the site.

So it takes 1500 visitors (300 x 5) to create 5 prospect contacts to produce one sale worth $10,000.

Each visitor is then worth $6.70. If you pay $6.70 per visitor to the site to earn $10,000 then there is no profit at all.

It's clear that the more accurate you can determine the projected value of a visitor, the better your chances of making a good decision with respect to any program that will bring prospects to your site.

For instance: Suppose you decide that a visitor ultimately represents $5 in commissions. (providing the visitor is a real potential buyer or seller). You may decide that
paying more than $1.25 per visitor is about the practical limit. If your Internet advertising budget is $5,000 per month and, providing you are set up to handle the prospects, you can project an earned commission from that investment of $20,000 per month
($5 / 1.25 = 4; 4 * $5000 = $20,000) with a gross profit of $15,000. (Of course you must allow for the fact that the "payoff" may be weeks or months after making the investment.)

Evaluating -- Second Method

The weakness in this first method is the difficulty of establishing reasonably accurate values for the variables. Without a lot of experience and record keeping these are hard to estimate.

The second method involves parlaying the experience of your competitors to
reach a preliminary evaluation of your visitors.

It works like this: If one or more of your competitors are paying for traffic to their sites in a way that you can determine how much they are paying, and if they do that for a significant amount of time, you can surmise that they have determined that what they are paying is worthwhile. (You never really know for sure, but it's a pretty good starting place)

Evaluating -- Third Method

Unfortunately this is the method most site owners use. It is simply to take the word of any salesman who is pitching a "web traffic service" to you. The salesman is on commission and really knows nothing about your business except that he or she thinks you probably believe in the tooth fairy and intelligent design, so to call this method risky is understating it big time. Someone once said that "Experience is the best teacher -- but the most expensive" and it is. The usual result of using this third method is a lighter wallet with little or no significant return.

Once you have a feeling for the value of visitors to your site you can begin to evaluate the various programs we'll be discussing in future artcles.

What Search Phrases are Worthwhile?

2008-09-01T15:04:00.000-07:00

Not a week goes by but some client or prospect calls and says something like "How come I'm not on the first page of the search engines like my competition?".

This is how the subsequent converstation generally goes:

Me: "What's the search phrase you're talking about?"

Them: (Something like) "Why 'real estate broker in Upper South Forest Greens' where we do business".

Me: "Do you realize that in the last three months there have only been seven searches using that phrase on all of the search engines in the world? And, moreover, the only people who have searched that way are you and your competitors"

The point is this: There are very very few search phrases that are used a great deal by buyers and sellers and there is tremendous comptetition for those few phrases that might be of real value.

For instance, suppose you are an agent in Carlsbad, California which is in San Diego County. What are the main searches used by prospects wanting more information in your specific area? Here are the most used in order of their ranking:

san diego real estate

real estate san diego

carlsbad real estate

real estate carlsbad

So let's see what the competition is for those phrases.

"san diego real estate" (in quotes so that it will narrow the search to that exact phrase) shows 2,930,000 web pages have that phrase and are competing for first position.

"real estate san diego" 2,980,000 competing. Wordtracker predicts 194 searches per day for that phrase. EVEN IF by some magical process you found your site on the first page for that search you would be competing (on google alone) with about 17 other sites to get a browser to click on your link. If you got your fair share of click throughs that would mean a maximum of about 11 visits to your site per day or 330 per month. On the average that would result in about 4-6 inquiries.

"carlsbad real estate" 1,250,000 competing. Wordtracker predicts 14 searches per day for ALL search engines. Using the same math as before that would translate to about 25 visitors per month and result in one inquiry.

"real estate broker in carlsbad" has 1,250,000 competing. Wordtracker predicts NO searches per day.

However, that doesn't mean you can't get a share of the prospects that go to the search engines to find an agent or broker to help them buy or sell property. Just don't waste your time on search phrases that are not reachable. There are plenty of phrases that you can compte for successfully, but it takes research and thought and time and money. The results can be worth it after all.

How not to Lose Real Estate Business

2007-12-01T00:01:00.000-08:00

The subject of this blog was conceived originally as a book. A book to help real estate agents and brokers learn to use Internet resources to grow their business in a cost effective way. The content is the result of my 25 years as a California real estate broker and my 11 years creating web sites for top real estate producers as well as my partner's experience in real estate relocation, real estate finance, and marketing. There is more on my background at www.silkshorts.com/the_crew.htm.

This is a work in progress. If you follow it you not only will get some great ideas that will help your business growth (I guarantee it) , but you will also, I hope, give me feedback on your own experiences that might help others with similar problems and interests.

Our corporate motto is "Your Success is Our Business Plan". OK, maybe that's too "cute", but it is our core belief.

You may be a complete beginner in real estate, a successful agent or an experienced and well-established broker, yet you still have to make decisions about your business' strategy with respect to the Internet.

So, what are your choices? Well...

Many have decided that since their business is going fine and has been doing so for a long time, that it is unnecessary and unimportant.
Some say all is needed is a quick overview of their company with no bells and whistles. They want to have the cheapest site possible but still be able to put a web address on their business card.
There are those that are fascinated with the technology and want to create their own website using their own time and skills.
Some offices turn the problem over to an assistant who may have taken some courses in "Internet" in school.

Who's to say they're wrong? If their strategy is the best for them, no problem, that's what they should do.

However, chances are if you are reading this that you are among the growing majority of real estate professionals who recognize that now and in the forseeable future the Internet is and will be the major marketing tool available. You recognize that you must find an Internet plan for your business that is managed by professionals in that business and that your time is much more effectively spent in front of prospects than in front of a computer.

Nonetheless, recognizing this does not solve the problem. It does, however, change the focus. Of the hundreds or thousands of "Professionals" available how do you find one who will help you achieve your goals?

What you need first is information on what the possibilities are and, more important, what are the dead ends, incorrect assumptions, misleading theories, and downright fraudulent propositions that can eat up, your money and even more important and valuable, your time.

How easy it is to put off a difficult task like this until later. Who really wants to do "Homework". Well you're in luck because right here are the "Cliff Notes" you need to get the unvarnished facts you need to make your decisions.

In broad strokes this will paint you a picture of the Real Estate Marketing Environment you are dealing with. (You can register for a regular email update on "Real Estate Site Design and Marketing Tips" for REALTORS®.)

It will show you:

How to use the Internet and other modern communications
tools to get more than your fair share of Internet-generated business.
How to position yourself as pre-eminent in your niche markets.
How to avoid losing your existing client and prospect base to the competition.
How to attract the top producers to your office if you are a managing broker.
How to present yourself and your business as a leader in your market area.
How to capture and hold future buyers months in advance of their entering the market and do it with a bare minimum of time spent.

As a bonus it will give you an insight in how to make that other business you’ve may have been considering, or that you are already involved in, successful.

An Open Mind

2007-11-01T00:01:00.000-07:00

We’re all familiar with the legal cliché that a defense lawyer’s biggest job is to find open minded jurors who will listen to her client’s defense free of prejudices and preconceived ideas of guilt or innocence.

We at Silk Shorts, Inc. have the same problem. We have, over the last ten years, fielded myriad pre-conceived ideas about the Internet and email. We have heard stories and rationalizations about it from the press, from television, from friends, business associates and others.

First, let's dispel some of the myths and misunderstandings. With an open mind the ideas in these posts will trigger an explosion of new marketing ideas in your brain that will make it hard for you to complete the articles. You will want to rush off and try your ideas immediately.

That’s good! Do it! But, be sure to keep reading to the end for even more terrific ideas.

Just remember one critically important thing while you are reading and the ideas begin: “Ideas are a dime a dozen. It’s acting on those ideas that will make you successful.”

Myths About Real Estate Web Sites

2007-10-01T00:01:00.000-07:00

Myth: My existing clients and sphere of influence will try to find my site when they are looking for real estate information even if I haven’t continuously promoted it to them.

Reality: When one of your sphere of influence wants real estate information
they will go to their computer and enter a search that will give them links to
hundreds of real estate web sites that have one thing in common, they are not
your web site. If they land on a well-designed site and make an inquiry by
form, email or phone at that site then you've lost them.

Myth: My past clients and prospects will remain loyal to me after requesting information from my competition on their web site.

Reality: Sure if that prospect is your mother--but maybe not even then.

Myth: If I have a well established base of clients, past clients, and prospects, I don’t need to worry about the Internet.

Reality: At least 85% of your past clients and prospects
are using the Internet either at home or at work. They routinely go to it for
information about whatever interests them. That includes real estate. If you
haven’t taught them to use your site and if your site is not useful, they will
end up contacting the competition who does have a useful site - guaranteed!.

Myth: People who come to my site are impressed by my standing as “Number One”, by my educational accomplishments and awards, by testimonials and by the length of time I’ve been in business.

Reality: What impresses them is ability to get information they're looking
for with a minimum of hassle. If they are impressed enough with that to contact
you then good testimonials will help--the alphabet soup after your name not so
much (but it can't hurt).

Myth: Prominently displaying and emphasizing my broker affiliation will impress my prospects.

Reality: Negative stories about a high profile broker go further and last
longer than positive ones, even with heavy duty advertising by them.
Clearly show that you are proud of your affiliation, but the emphasis should be
on YOU and what an understanding and competent professional you are, and how well
you are going to take care of your client. Testimonials are great in this
context.

Myth: I can be successful in real estate in the next decade without using the Internet effectively.

Reality: Who in the world told you that?

Myth: I can be a top producer and still have the time to design my web site, learn to make it interactive and keep it registered and indexed well.

Reality: Only if you can pat your head and rub your belly at the same time.

Myth: If my web page or web site contains inaccuracies, misspellings or grammatical errors it will not hurt my image or affect my success.

Reality: What do YOU think when you visit such a web site. Don't you
assume that if the owner hasn't even bothered to proofread their copy that their
attention to detail might be lacking? (By the way, if you find any typos
or inaccuracies in this copy, please let me know.)

Myth: Email is different from conventional mail in that I don’t have to pay attention to formatting, spelling, grammar and style.

Reality: Your business emails will be evaluated the same way as your business
snail mail. Make it as well thought out and effective as possible.

Myth: If I send email to thousands of recipients some of it will “stick”.

Reality: It will, but not in a good way.

Myth: Other Realtors really want to have me send them an email about each of my new listings.

Reality: Unless they have asked, this is an emphatic NO.

Myth: If you have a web page on the Internet people will find it.

Reality: What you want is for prospective buyers and sellers to find it.
That takes planning and money and expertise, period.

Myth: If people find my web page or site I will get leads from it.

Reality: One of the most lucrative scams is to promise to deliver
thousands of "hits" to a Realtor's web site for a fee. They may be
delivered, but do you need visitors to your web site that are looking for a
toothbrush comb or a new Subaru, or a gold fish? You want people on your
site who are interested in the service that you offer in the area that you
operate. Even then you must have a site that motivates them to contact you
or their visit is wasted.

Myth: If my page or site is entertaining people will come back to it and will call me or contact me about real estate.

Reality: If people want entertainment they go to television or the local Pub.
You want your site to be interesting and useful, then you've got a shot at a
business connection with some of your visitors.

More Myths about Real Estate Web Sites

2007-09-20T13:43:00.000-07:00

Myth: Lots of links to other sites will enhance my site.

Reality: Links to other sites will usually just lead your visitors to other sites.

Sometimes, however, you may want to show other sites on your site, for instance a school site or law enforcement site. If so you can "frame" it so that your navigation links stay on the screen and your visitor feels they are still on your site.

Myth: Trading links is a good way to build traffic to my site.

Reality: To some extent reciprocal links can increase your site's relevance in the search engines, particularly Google, however, they must make sense in the context of your service or business. Random links for links sake can have the opposite effect and lower your site's relevance.

Myth: I have to spend a great deal of money to have a successful real estate web site.

Reality: Generally a well thought out and designed web site will cost you much much less than an ad in the local newspaper and will serve you better. What one considers "a great deal of money" is, in any event subjective. The goal should be to have the absolutely best designed site that fits your advertising budget.

Myth: Prospects from the Internet are fickle and many of them are frivolous.

Reality: Quite the opposite. Prospects go to a lot of trouble to find information on the Internet. They don't do it for fun. They do it because they are doing serious research on buying or selling property. Treat every inquiry from your site as gold plated.

Myth: There are only a small percentage of people that use the Internet to make a real estate buying decision or to find an agent.

Reality: Five years ago that was true. Now nothing could be further from the truth.

Myth: If I have a page on realtor.com, my company site or some other such site, I really don’t need my own web site.

If you believe that you have never put yourself in a prospect's shoes and tried to use realtor.com. Besides realtor.com is now very expensive to advertise on.

Myth: Web sites are pretty much alike and I can shop for the cheapest and get by.

Reality: That really makes sense, doesn't it?

Myth: Once I put up a web site and register it, I can pretty much forget it.

Reality: That's like saying once you buy a car and fill it up with oil it never needs service. To compete you need a process of constant upgrading in content and style. You should review your site frequently and have a professional keep it up to date.

Myth: The best way to get leads from a web site is to register it with the 400 top search engines.

Reality: That’s the best way to be a lead not to get them. When you register with those 400, 395 of them are simply ways to get your email address to put you on marketing lists. Watch your email box fill up with spam

Myth: If I register my site with the big search engines I will get good traffic to my site.

Reality: Registering is not the answer. Indexing properly is the answer. There is no easy way to good indexing. It takes time, money and expertise.

Myth: If I get traffic to my site I will get leads.

Reality: That’s like saying that if there are fish in the pond you will catch some. True ONLY if you have effective fishing gear. If your site does not spur a prospect to action, you won’t get any leads no matter how many people see it.

Myth: A lot of hits on my site indicates I am getting a lot of interest. Hits are the best measure of activity.

Reality: VISITORS are the measure of traffic to your site. "Hits" as a measure is totally misleading. A typical web page may register 10 or more "hits" every time a visitor accesses it. One visitor may account for several hundred hits in a single session.

Myth: A good way to get leads is to send email to tens of thousands of email addresses. After all if only 1% respond….

Reality: Surprisingly, there are still people who believe that and so we have hundreds, thousands, millions of spam emails to deal with.

Myth: Most real estate prospects that use the Internet are technically oriented.

Reality: I probably should delete that question. I think everyone knows these days that that is not true.

Myth: People stumble onto web sites.

Reality: People (read 'prospects') find web pages by searching for them using criteria that their interest dictates. Still www.stumbleupon.com/ has become a very popular site and its name says it all. It's fun, but don't count on it for business.

Myth: If I am well registered on the search engines, I can reduce my other advertising.

Reality: Actually, that "myth" is becoming reality. It is true more every year and many large real estate offices are trimming their print media advertising and directing more of their ad budgets to upgrading their web sites and the way they handle Internet generated leads. One result for us at www.silkshorts.com is to add search engine positioning to our list of services for real estate clients. A lot of brokers and agents are preparing for their growth by seriously competing for web site position for important search phrases.

Myth: If I have a lot of links on my site, then prospects will come back to my site and eventually call I about buying or selling.

Reality: If you have a lot of outside links on your site, you are collecting traffic for someone else. When they follow an outside link you lose them.

Myth: Not many sellers use the Internet to find a selling agent.

Reality: Five years ago this was true. Not so now. Seller's as much as buyers monitor the Internet and especially their listing agent's web site to see how property is marketed and what current values are. We now routinely equip our sites with data tracking for sellers so they can monitor progress or lack thereof.

Myth: When I get an Internet lead from my site it is best to email them first before calling them on the phone (if I have a number).

Reality: Wrong, wrong, wrong; an immediate call (in
daytime) is the best course if you want to touch a new prospect before they go
to the competition.

Myth: When I get an email inquiry I can respond anytime during the first 24 to 48 hours.

Reality: Usually your competition has contacted them within a few hours if you haven't.

Myth: Browsers like to read over my resume and see what kind of awards and qualifications I have.

Reality: Only if the browser is your mother. Prospects want to know what you will do for them. Put in the Alphabet soup after your name, but don't labor under the misapprehension that it will have much effect.

Myth: Browsers like to hear about my family and see pictures of my kids and
pets.

Reality: Yes, I think to some extent they do, but only after they are considering hiring you, Put this information on your resume page but not elsewhere on your site.

Adding Prospects to Your Internet Sphere

2007-09-10T05:59:00.000-07:00

How do you expand your database of long and short range prospects? You not only need to collect email addresses of likely people but must also obtain their explicit or implied permission for you to market to them. This is something that is near and dear to us as we are always trying to expand our ability to reach prospects for our business. If you'd like to be on our mailing list to see how we use email as a marketing tool you can register on our site at "Design and Marketing Tips".

Existing contacts

The people you have already been marketing to are the most valuable part of your prospect database. You already have their permission to contact them with marketing messages. All that is necessary for you to do is to obtain their email addresses and create an email strategy.

Print media featuring your web site

If you have an advertising program using print media then just alter the advertising message to actively sell the utility of your web site (be sure that your site really is well designed and useful).

Personal contact

Every person you meet should have your card, should know that your website is extraordinarily useful to them or to anyone they know who has questions about real estate and should understand that you are very responsive to email. Ask for their card and make sure you have their email address as well as their phone numbers and any other information that will help you market to them over the long run. When someone does give your their card and tells you what they are looking for, immediately go to your site's IDX search and register them for automatic email updates for the specific search they have told you interests them. When you've done that, give them a call to tell them about it and to expect daily email updates for their search from you.

Search Engines

Talk to your web designer about a long-term program to achieve the best possible search engine registration and positioning. Also find an expert in "Pay Per Click" advertising to get an immediate flow of prospects to your web site (get referrals from someone you trust). You can be reasonably assured that if people come to your site they have an interest in real estate. Even if they are not currently in the market, they will be eventually, and they may have friends or
associates who they will alert to the existence of a useful site like yours (if it is really memorable and useful).

Blogs

If you have expertise about your area of operation that would be useful to the prospects you are targeting, write articles about it to put on your site, but if you also are willing to take the time to keep up a blog like this, do so. A good blog can help not only your web site relevance but will demonstrate to potential clients that you really do have expertise that can be useful to them.