February 8, 2010

Does Newspaper Advertising Work?

Filed under: Advertising, Prospecting — Sam Prochazka @ 3:23 pm

Sales people are calling you to sell it, sellers are demanding it, and your association is telling you to use it, but is print advertising really worth all the time and money you’re putting into it?

Newspaper Advertising

Newspapers come in many forms:

  • neighborhood newspapers
  • city/state/national newspapers
  • trade newspapers
  • industry magazines

Advertising in each of these types of publications can be done in a variety of ways:

  • classifieds
  • small ads next to relevant, industry-specific content
  • mid-size ads - full-page ads
  • editorial sections

Is Strong Advertising Possible with Newspapers?

A strong advertisement incorporates all of the following:

  • A Strong Headline. It’s been known for years that the most important element of a good advertisement is the headline. It’s such an important “make-or-break” part of the advertisement that copywriters have been known to spend 90% of their time on the headline and 10% on the rest of the article.
  • Send out only material on which you are an EXPERT. Sending out too much information on too many subjects is a huge mistake many agents make. If you’re writing about strategic buying in a certain niche market, don’t include mortgage rates, home decorating tips, lifestyle ideas and health stories - these things all detract from the value of your expertise.
  • LOOK GOOD. Old and grainy photos, outdated colors, blocks of multicolored text, cluttered design… Wow - some real estate ads are terrible! Sending out ugly or amateur-looking ads will cost lots and actually do damage to a Realtor’s image. Ads should be professionally drafted and look good.
  • Include ALL contact information. If you’ve read my other articles you’ll see I’m becoming a broken record… Make sure you’re full name, brokerage, cell phone, office phone, fax, email and website URL are all on your ad.
  • Use a good photo. I’m always surprised by the number of old photos Realtors use. If the photo isn’t from the most recent decade, DON’T use it! Get a nice, high-quality, professional photo of yourself to use on all ads.

So - is strong advertising possible with print? Yes, but it’ll cost you. To include all of these things as part of an advertisement takes room, and you can bet that publications will charge for every square inch you use.

What’s Happening in Newspaper Advertising?

Since 2005, newspapers have been losing advertising revenue. In fact, 2009 saw the largest decline in advertising revenue in the history of the industry:

  • Employment classified advertising dropped 67.4% to $205.4 million.
  • Real estate classified advertising slumped 45.6% to $336.9 million.
  • Automotive classified advertising crashed 43.4% to $332.8 million.
  • National advertising slipped 25.9% to $1.1 billion.
  • Retail advertising stumbled 23.7% to $3.3 billion.
  • Other classified advertising slid 16.5% to $587.7 million

2005 - Newspaper industry’s all-time best year with overall advertising revenue $49.4 Billion.

2009 - Newspaper industry overall advertising revenue at $30 Billion (40% decline from 2005).

(source: Newspaper Association of America)

The fact is that newspaper advertising is in decline and that during this period, online advertising has increased by double-digit percentages every year.

Is Newspaper Advertising Competitive?

In short - no. Newspaper advertising was competitive years ago when it was the established medium of choice for information distribution, but since the mid-90s and the advent of the Internet, print advertising has all but completely lost it’s advertising value. Here are the reasons why:

  • Advertisers are seeing vastly higher rates of return from internet advertising
  • The majority of news and information once offered exclusively on newspapers is now available freely on the internet
  • Internet advertising can be highly targeted, whereas print advertising is broadly targeted at best
  • Internet advertising is paid on click-through rates, not impressions
  • Internet IDX/VOW searching have opened access for the public to almost all MLS systems in the nation - these services cannot be duplicated in print

There are exceptions, though:

  • Highly-targeted lifestyle magazines are good sources of business if they are read by people in the niche you’re targeting - this is used by some of our top customers and can be extremely effective.
  • Neighborhood newspapers are usually inexpensive and can create branding in your geographical niche.

So What’s the Lesson?

Here’s the surprising thing - in a survey of 30 Realtors we recently conducted, almost 80% reported using some form of newspaper advertising in the last 12 months. When asked if it was effective, 100% reported it was not. So, why are Realtors still using newspaper advertising?

BECAUSE SELLERS KEEP ASKING FOR IT!!!

So - the are really two points to be  taken from this:

  • Newspaper advertising is a waste of money unless done very carefully and in the right publications, and
  • Most Realtors will save thousands of dollars/year if they learn how to convince their sellers that newspaper advertising WON’T SELL THEIR HOMES FASTER!

February 2, 2010

3 Reasons Why Paging Services Kill Business

Filed under: Marketing, Technology — Sam Prochazka @ 12:52 pm

It’s a competitive market out there, and what your paging service isn’t (or is) doing might be costing you thousands in lost business. Here are the three biggest reasons why paging services are killing your business:

1. Paging Services are Out-Dated

Sure, paging services served their purpose by providing a real voice at the end of the line in an industry where it would otherwise be impossible, but times changed long ago with the advent of mobile phones.

These days customers perceive paging services as just another barrier between them and the information they need. The added step of calling a paging service, then waiting for a call back can be a frustrating and often futile experience. At least leaving a voice mail gets it to the doorstep of the right person - a page could end up just about anywhere.

2. Paging Services are Unreliable

It’s happened to all of us - we’ve sent text messages that haven’t gone through as expected. The same is true for paging services, and unless you’re willing to check the paging report thoroughly every month, be prepared to lose some business from incorrectly paged leads.

Not only that, but what if the paging receptionist (who’s making minimum wage) makes a typo in the phone number from that inbound lead? Goodbye commission cheque.

3. Paging Services are Unprofessional

Here’s one of the most irritating voice mail greetings a Realtor can have:

“Hi, you’ve reached the voice mail for Sam Prochazka, Realtor serving the Greater Calgary area. I’m currently serving other customers, but please leave a message and I’ll return your call at my earliest convenience. If your call is urgent, please page me through my office at 123-456-789…”

So - I can leave a message, or I can call another number, potentially hold for several minutes, have them send my Realtor a text message that may or may not get through, then have it end up at the exact place I’ve just called? I’ll go elsewhere, thanks.

What Top Producers Do

The bottom line is that top producers realize that every “service” between them and their customers is a barrier. They realize that EVERY phone call, from inquiry to motivated seller, is a potential commission and should be treated as professionally as a listing presentation.

Top Producers I’ve spoken to do the following:

  1. They make sure their office paging service gives out their cell-phone number (even the evening services)
  2. They work at a brokerage that has extended hours
  3. They advertise their cell phone numbers
  4. They present realistic callback times in their cell phone voice mail greetings

How Many Websites Should A Realtor Have?

Filed under: Marketing, Real Estate Websites — Sam Prochazka @ 10:48 am

Lots of Realtors® have more than one website, but is it really worth it?

The More the Better, Right?

Web designers looking to sell more product will say that multiple websites will:

  • give more places for leads to visit
  • create better niche targeting
  • allow different websites for different customers/property types/etc.
  • provide a wider net to catch business with

“Yes, but these are all good reasons to get multiple websites, right?”

No. The truth is that having more than one website will:

  • force a Realtor’s® to be spread his/her resources proportionally (and thinly) over all websites
  • confuse visitors looking for everything under one “roof”
  • weigh the Realtor® down with more technical issues such as complex interlinking, website maintenance, etc.
  • cost MUCH more

One website is best

The fact is that one well-designed website is best, period. Having one website allows:

  • the Realtor® to focus all his/her resources on promoting one domain name/brand
  • the Realtor® to be specific, focusing on perfecting one single website rather than several
  • the Realtor® to offer one focal point for ALL activities (MLS® searching, blogging, brand-building, etc.)

Conclusion

The bottom line: more money, more fun, and more time off are all better… but having more than one website isn’t.

January 4, 2010

Most Important New Year’s Resolution for Realtors

Filed under: Marketing — Sam Prochazka @ 10:48 am

Making more cold calls? Doing more advertising? Becoming more internet savvy? Though these are good resolutions, they are all dwarfed by the most important, and easiest resolution of all: confirming contact information.

Why is this so important?

Okay - this is obvious; the more important question is whether this is a good use of your time. We conducted a survey of 30 random Realtors® and discovered that over 80% had incorrect contact information somewhere in their advertising sphere (and yes, this included Top Producers)! We strongly recommend that ALL Realtors® perform an annual confirmation of their contact information.

Where should I confirm contact information?

Everywhere. It’s vital that anywhere you put personal contact information, it is correct. Here’s a quick checklist:

  • Realtor.com (US)
  • Realtor.org (US)
  • Realtor.ca (Canada)
  • Your personal website
  • Your business card
  • Your office website
  • Your office reception
  • Your office paging company
  • Your business partner
  • Your receptionist
  • Your MLS® and Realtor® Association
  • All advertising (flyers, billboards, bus benches, listing feature sheets, etc.)

What information to confirm

RealPageMaker suggests that Realtors® provide as much contact information as possible wherever they can (check this article for examples). As such, make sure to confirm the following (in order of importance):

  • Full name
  • Cell phone number
  • Website URL
  • Email address
  • Office phone number
  • Fax number
  • Postal address

December 31, 2009

3 Biggest Myths About Real Estate Leads

Filed under: Marketing, Prospecting — Sam Prochazka @ 11:02 am

Think you’re doing everything right with your leads? Think again. What you believe to be true might be costing you thousands every month, and 5 years of relaxed, rich retirement…

Myth 1: Most leads won’t convert

If I had a nickel for every time I’ve heard this one I would’ve retired years ago! The truth is that everyone in the world needs a place to live, and the vast majority of people you speak to will buy one or more homes during their lifetimes. Check out these statistics about home ownership in the developed world (number of households who own their home):

  • Ireland: 83%
  • Italy:     78%
  • Australia: 69%
  • United Kingdom: 69%
  • Canada: 67%
  • Finland: 67%
  • United States: 65%
  • Belgium: 65%
  • Japan: 60%
  • Sweden: 60%
  • France: 54%
  • Denmark: 53%
  • Netherlands: 49%
  • Germany: 43%

The only truth to this myth is that most leads won’t convert right away. Top Producers take advantage of this by collecting contact information and staying in touch with a huge number of people and closing multiple deals with them over a period of years and decades. Of course doing this properly isn’t necessarily common-sense, which leads us to myth 2…

Myth 2: Realtors® don’t need a CRM (Customer Relationship Manager)

“Huh? What’s a Customer Relationship Manager?”

A Customer Relationship Manager (CRM) is a type of software that ALL successful Realtors® (and businesses) use to keep track of their Spheres of Influence. A good CRM allows a Realtor® to keep track of (and keep in touch with) thousands of leads and past customers. A Realtor® without a CRM will always be living from deal-to-deal.

One of the most important aspects of a good CRM is often overlooked: retirement nest egg. Imagine the Top Producer in your office standing up at the next Monday-morning-meeting and announcing that he/she is retiring, and selling his/her book of business to the highest bidder… Guess what? He/She will be able to retire 5 years earlier!

Myth 3: Closing deals is an art, not a science

Sure, closing a deal involves a degree of artistic finesse, but improving conversion rates and decreasing conversion times requires strict application of the scientific process.

A quick review (from our junior high science fairs) of the scientific process (source):

  1. Define the question
  2. Gather information and resources (observe)
  3. Form hypothesis
  4. Perform experiment and collect data
  5. Analyze data
  6. Interpret data and draw conclusions that serve as a starting point for new hypothesis

Most Realtors® think they know how to close deals because they manage to do just that from time-to-time. The truth is that regimented trial and error with documentation and analysis is the only way to improve.

Conclusion

The most successful Realtors® I know understand that their professions operate according to the same rules as all other businesses. They take care to keep in touch with people, invest as much time in maintaining a customer base as they do building it, and they look at each process scientifically.

December 22, 2009

New MLS Search!

Filed under: Real Estate Websites, Technology, Upgrades — Sam Prochazka @ 11:32 am

Today RealPageMaker released a massive free upgrade to all customer’s website MLS Searches:

New MLS Search Engine

New MLS Search Engine - Map View

New MLS Search Engine - List View

New MLS Search Engine - List View with Predictive Search

The new search Engine includes:

  • Predictive searching (in Beta)
  • Address, MLS Number, Neighborhood, and City specific searching
  • Ability to choose between sliders and drop-downs
  • List view for results
  • Enhanced statistics
  • Additional map search tools
  • More fine search options
  • Better integrated market statistics
  • More obvious VIP features
  • Larger map workspace

Stay tuned for a whack of upgrades in Q1 2010…

November 9, 2009

Biggest Mistake 30% of Realtors Make Online

Filed under: Buyers, Marketing, Prospecting, Sellers — Sam Prochazka @ 2:39 pm

We recently completed a survey of 50 Realtors® and discovered that the most common mistake they make with their websites is not calling their leads!

“Wow - that’s ridiculous. But it can’t be many of them can it?”

Our survey revealed that a whopping 30% of Realtors® don’t call leads generated from their websites!!

“What do you mean, not calling? Surely the Realtors® emailed them or did some other type of follow-up??”

This is what we’d thought, but after further questioning we discovered that these leads had simply been forgotten, missed, or just not followed-up with at all.

Why?

In most cases (66%), Realtors® ignored emails coming from their websites. In other cases (20%) Realtors® assumed the customers would not immediately convert. The remaining Realtors® reported a host of other reasons including (but not limited to) untrained/low-quality assistants, not enough time, etc.

Other things to be aware of

In addition to almost a third of Realtors® not calling their leads at all, a further 30% waited upwards of 24 hours before responding to their email/website inquiries! Any current or future top producer knows that even an hour, let alone a full day, can mean the difference between getting business or not.

When a lead was called, what happened?

Of the 70% who reported that they’d called their leads back, the vast majority (over 75%) reported that they’d made one or more sales from those leads during the prior year. Almost 10% reported that they’d made one or more sales within the prior month!

Our conclusion

By our estimates, Realtors® can increase website lead conversion two-fold by making the following two changes:

  1. Call or email ALL leads that approach you through your website
  2. Make sure your website sends leads directly to your cell phone or mobile device so you can call or email ALL leads immediately

What You’ve Forgotten on Your Listing Information

Filed under: Marketing — Sam Prochazka @ 11:02 am

We conducted a recent survey of 100 random listings from the web and found that a whopping 45% of ALL listings have invalid, non-functioning, or incomplete contact information…

Typical Example

Here are two screen-shots showing exactly what we mean (taken from random Calgary listings on Realtor.ca):

Realtor Contact Information

Realtor Contact Information

Notice that the contact information on the left is incomplete - the visitor can either visit the Realtor’s® website or send them an email. The contact info on the right, however, gives the visitor 5 contact options (direct, office, email, website, fax). Which Realtor® is missing out?

What Contact Information to Include

Include it ALL! Top Producers know that the more ways customers can contact them the better. They also make sure that:

  • They include their direct line on everything
  • They have the ability to check email/website inquires on the road (mobile device)
  • They respond to all inquiries within minutes, not hours or days
  • They do frequent checks to make sure their contact information is correct

October 27, 2009

What Makes a Good Email Address?

Filed under: Uncategorized — Sam Prochazka @ 11:09 am

Don’t think your customers notice that you’re using Hotmail or Yahoo! Mail for your business email? Think again. Good email addresses are one of the first things customers use to separate professionals from half-baked entrepreneurs.

Using Free Email Services

Free email services are great: lots of space, accessible from anywhere in the world, relatively good spam filtering. But there are downfalls:

  • Hotmail/Yahoo add their branding to the bottom of every message you send
  • Emails received in online mail accounts  might not render correctly, hiding critical details

Be careful when deciding to use a free email service; if you do choose to use one, we recommend GMail from Google.

Creating the Right Email Address

The following shows what respondents to a survey (conducted by  CentralNic.com), thought was most important when choosing an email address:

  • 41% - Must Be Easily Memorable
  • 23% - Absence of punctuation symbols and numbers (including underscores and hyphens)
  • 19% - Geographical identity in the address suffix (.us, .ca, etc.)
  • 17% - Full name in prefix

October 19, 2009

Free Google Advertising (with video)

Filed under: Marketing, Prospecting, Real Estate Websites — Sam Prochazka @ 4:35 pm

Ever wanted to get free exposure on Google? Now you can!

Google has a service called the Local Business Center, which allows you to add and edit a listing for your business so that it’ll appear in some search results and on Google Maps.

Here’s the deal:

You can access this service at: www.google.com/lbc. If you’re in Canada make sure to use the SMS verification process as the phone verification doesn’t seem to work.

This will work best for those who sign up first. Make sure to get on it!!

UPDATE: Similar services provided on Yahoo and Bing:

Older Posts »
Careers | Privacy Policy
© Copyright 2010 RealPageMaker ® | making you money. saving you time. simple. | websites for real estate. All rights reserved