There are 5 key factors that will determine the value of your website:

1. Brand Independence

The more independent your website domain name is, the more valuable it is to a purchaser. For example, a person is much more likely to buy www.realpagemaker.com than www.samprochazka.com.

It’s also important that the colors, logos, and content on the website be franchise-unspecific. Most purchasers will deduct the cost of all necessary changes from their offers.

Building an independent brand will generate the strongest value in a website. Consider the following brand independence factors:

• Independence from franchises, offices, and individuals
• Geographical independence
• Property-type independence

2. Website Age

Believe it or not the age of your domain name alone can be an important contributor to the value of your website. Generally speaking the older the domain, the more valuable it is. This is because Google uses domain name age as one of its ranking factors.

3. Technology

A website built on inflexible, old technology will be worth less than one built on a more modern platform. Migration costs (to move from the old technology to the new one) will be deducted from any offers.

4. SEO System

The pagerank of your domain name, the number and quality of inbound backlinks, and the ranking you’ve achieved for your desired search terms will all dramatically affect your website value. In addition, the system you use to maintain those rankings (and associated traffic) will all be factored into the value of your website. Obviously the higher and more widespread the ranking, the more valuable the website.

5. Net Revenue

Of course the single largest contributor to the value of your website will be the net revenue you derive from it. It’s important to be able to clearly demonstrate how much money your website makes for you, and how quickly that amount is grows every year.

Starting early with the right domain name can mean the difference between building a temporary “web presence” or a valuable “web asset” that can jump-start your retirement (or maybe get you there a few years sooner). Let me explain:

Web Asset vs. Web Presence

Consider: http://www.justinbiebermusic.com
Depending on the decade you were born in you either love or hate this guy – but that’s not important. His domain name represents a “web presence” and not a “web asset.” Here’s why:

• Without Justin Bieber this domain name is worthless
• As Justin Bieber mania fades (sorry, it’s inevitable), the value of this website will go with it
• Justin Bieber will never be able to sell this website to anyone unaffiliated with his brand

Of course Justin Bieber’s management team knows this – but that’s the point. Justin Bieber is a “temporary” brand and only requires a “web presence” while it’s functioning. Once Biebermania disappears, so will all remnants of the brand. Backorder his domain name now and in 20 years you’ll likely own it.

Now Consider: http://www.napster.com
Still in the musical vein let’s look at “Napster.” Napster was started in 1999 and is one of the industry’s most notorious websites. Despite numerous lawsuits and a major bankruptcy, Napster is still a recognized brand – worth enough to be purchased in 2008 for $121 million dollars! Napster truly represents the quintessential “web asset.”

Web Asset vs. Web Presence in Real Estate

In real estate almost all agents are taught to “self brand.” Though this may work in some capacity it requires huge investment, constant maintenance and forces the following questions:

1. What will happen to their brand when the REALTOR^™ retires?
2. How much cost, skill, and organization does it require to maintain the brand?
3. Can the brand/system be “sold” to another REALTOR^™ if/when they leave the business?

If the brand revolves around a personal name, then the answers are:

1. It will disappear
2. Lots of cost and organization
3. Likely not, unless it’s an inheriting family member

If the brand revolves around a trade name, then the answers are:

1. It will only disappear if it’s not passed to someone else
2. Lots of cost, brand-management-skill, and organization
3. Yes, probably for a substantial amount

Brand selection goes hand-in-hand with domain name selection, and the same rules apply.

Your Domain Name

If you intend on building a “web presence” then:

• your domain name can be anything, but preferably your name
• keep it as short as possible
• make sure it is easy to spell

If you are building a “web asset” then:

• your domain name must be independent of your name or your company’s name
• keep it as short as possible
• make sure it is easy to spell
• you can visualize any other REALTOR^™ using it

How it affects your retirement

Don’t worry – regardless of your choice you’ll still be able to retire, but if you’ve been successful at creating a website “asset” then it could be a MUCH more comfortable retirement. Consider this:

• After several years of hard work and investment you’ve optimized your website with content and back-links and have achieved a healthy search engine ranking
• Your website generates a healthy volume of new leads every year with little to no further advertising dollars
• If “worked” properly, leads from your website would generate a substantial income for any REALTOR^™
• Your domain name is not “you”-centric

Now you’ve got a “web asset” to sell! Check this article for an approximate valuation formula.

1. Traffic Estimator (from Google)

Ever wondered what keywords to target with your website? Why not go straight to the source and ask Google directly? The traffic estimator will give you a good estimate of traffic you can expect from pay-per-click advertising:

“Chicago Real Estate” – 60,500 monthly searches in the US
“Vancouver Real Estate” – 49,500 monthly searches from Canada

2. Keyword Tool (from Google)

Google has a great tool that allows you to find “trailing” keyword phrases for any advertising target area. Simply type in keywords you are targeting… that’s it! You’ll be able to find hundreds of different keywords you can target, each with estimated monthly traffic.

3. Site Explorer (From Yahoo!)

This is an extremely underrated tool that shows you ALL backlinks to your competitors’ websites. WOW! It basically defines “keys to the kingdom” doesn’t it!

You’ll need to sign up for a free account with Yahoo! before you access this unbelievably useful tool. Anyone not using this is at a serious SEO disadvantage.

4. Webmaster Tools (from Google)

If you’re trying to rank higher in Google, then you won’t be able to do it without webmaster tools. Use this simple, free tool from Google to analyze keyword density, see site errors, monitor backlinks (though you’ll need Yahoo!’s Site Explorer to see ALL backlinks), and localize your website.

5. Your competitors

Companies make a lot of money selling you information about your competitors, but using your competitors websites with the tools above, you’ll be able to see exactly what they are doing for free. After-all, if you know what your competitors are doing, then you’ll be able to do it yourself!

Big back yard? Nearby parks? Waterfront? It’s amazing how often the best features properties are the most poorly presented. Here are five examples that’ll make you cringe:

1. “But I didn’t realize that people liked waterfront…”

Check this out:

Good Shot, Too Small

And this:

Blurry is beautiful...

This waterfront home in Tennessee is one of the most beautiful I’ve seen… and these two photos represent the ONLY shots of the property’s best feature. This REALTOR^® definitely has a keen eye for beautiful properties, but no idea how to take a photo.

2. “Beautiful mansion, only floods once a year”

Beautiful home, includes flood plain - only $2.49 million

Here’s a great one near the Elbow River in Calgary, Alberta. An absolutely beautiful property, but probably only for buyers willing to take risks or who have lots of insurance. The gorgeous view and sunny day ‘almost’ distract viewers from the flooding river in the backyard.

3. “With a beautiful city view”

Here’s a shot from the balcony of a Chicago condo overlooking the river:

River View

Don’t worry, the cast iron bars come with the condo. Did I mention that they’re painted black? And if you look out over the city from this exact angle you won’t be bothered by the beautiful Chicago view.

4. “Largest river valley in North America”

River Valley View

Edmonton’s pride and joy: The river valley. And though apparently there’s a view from this condo, it certainly wasn’t showcased. But who wants deep river valleys when they can have brick and exposed aggregate?

5. “On The Sea Wall”

Seawall a la 2002 cellphone camera

This beautiful $598,000 property on false creek in downtown Vancouver is advertised as being on the seawall… this is the only photo providing any evidence of that and it looks like it was either taken through 3 beer glasses or with a very dirty cell phone lens. Nice work.

Ever received an email like this:

“We are interested to increase traffic to your website, please get back to us in order to discuss the possibility in further detail. We are an SEO company that can bring huge amounts of traffic to your website.”

RealPageMaker receives several emails like this every day from SEO (Search Engine Optimization Companies) attempting to solicit business from our customers. I’ve been asked hundreds of times what these companies do, so here’s a brief explanation:

Keyword Analysis

Most of these companies will perform a simple keyword-analysis of the search terms you are trying to target. For example, if you’re a REALTOR^® in Vancouver, they may attempt to target the following keyword phrases:

• “Vancouver Real Estate”
• “Vancouver Realtor”
• “Downtown Vancouver Condos”
• etc.

These companies will likely tout this as “highly complex” or “extremely involved” but really they are just using the free Google keyword tool.

Website Audit

After determining which keywords you are attempting to target, SEO companies will then perform a “website audit.” Essentially this means that they will analyze your website for keyword/keyphrase density in content and meta tags. Though they will probably sell you on how their tools are proprietary, they are most likely using an inexpensive website auditor tool like this one.

Backlinks

Some SEO companies attempting to solicit you through email might offer backlinks as part of their services. Backlinks are important if your website is to achieve a reasonable ranking for your targeted keywords and search terms. Here’s the problem: getting backlinks is fairly easy; getting GOOD backlinks takes work. It’s unlikely these companies will offer anything of quality.

Content

Some of these SEO companies might even offer to write some copyright content for you (though most won’t). Typically this content is canned, contains spelling and grammatical errors, and might even be copied from online publications like www.ezinearticles.com.

My problem with these services:

They charge too little to be of any use to you. Here are some SEO truths that most people don’t realize:

• SEO takes a lot of upfront work and usually costs several thousand dollars just for an assessment
• SEO is a continuous process: a one-time submission of your website to online business directories is not going to produce any noticeable results
• SEO is extremely competitive. There are lots of people investing significant sums of money to achieve the rankings you are competing for.
• SEO involves a customized and targeted strategy that companies charging a one-time flat fee will not be able to deliver

Your website can achieve a high ranking in Google, but it likely won’t come from someone attempting to solicit you via an anonymous form on your website. Good SEO companies are expensive, but justify their expense by generating tremendous results.

Merry Christmas!

Here’s a way you can create a stronger listing presentation that will reduce time on market and attract more sellers in the process: floor-plans.

Floor-plans?

Yes, that’s right.

“But no one puts floor-plans on their listings…”

Exactly! And you should at least consider being the first. Here’s why:

• When combined with photos, floor-plans give buyers a vastly better impression of a property.
• Sellers will be extremely impressed because you’ll be the only person doing it
• It gives you the chance to advertise your listing expertise on your website, as well as any other website displaying your listings…

But making floor-plans takes too much time

You’d be surprised. Checkout the floor-plan I whipped up in 15 minutes on www.floorplanner.com:

15-minute floor plan 1/2

15-minute floor plan 2/2

Here are some floor-plan tools you can use to generate floor-plans for your listings:

1. Floorplanner.com
2. Diakrit.com
3. Sweethome3D.com
4. Gliffy.com
5. Floorplanonline.com

At a recent trade show I was asked whether social media marketing has supplanted email as the preferred communication protocol with customers. My answer: ABSOLUTELY NOT.

Email vs. Social Media

Social media has taken off in recent years and it’s easy to be convinced that communicating through facebook is equally as important as through email. Here are the statistics:

• 68% of consumers aged 18-26 use emailed coupons online
• The age range most reliant on e-commerce is the 27 to 38 year-old demographic
• People over the age of 38 are significantly less likely to use social networks to pursue product information or seek recommendations
• 43% of consumers prefer ads/promotions via email; only 3% prefer ads/promotions via social media

Some very interesting graphs:

Preferred way to receive ads

Use of social networks by age group

(Source: How We Shop in 2010 USA: Habits and Motivations of Consumers, Econsultancy, July 2010)

Who are your customers?

The statistics above indicate that email is still MUCH MORE relevant than social media regardless of your customers’ demographics. Even so, let’s take a look:

• According to the National Association of REALTORS^®, 39 is the median age of a home-buyer

Correlating with the statistics above, almost HALF of your potential customers are not even using social media!

Conclusion

A good command of email marketing is still an extremely important component of a successful real estate business.

If you’re “renting” a website from your office, then you’re not alone – almost 60% of REALTORS^® participate in some type of “shared” website with their office or company. The problem is that it’s your office who sees the majority of the benefit, not you.

How “Shared Websites” Work

Shared websites are usually administered by a real estate office or company, and are often given away free, or at a reduced charge to member REALTORS^®. These websites sometimes have rotating “lead recipients” or other lead-distribution mechanisms that are used primarily as a selling feature to get mass buy-in from member REALTORS^®.

How do Offices and Companies pay for “Shared Websites”?

Good question, right? Though you’ve probably been sold on the idea that a shared website is better for the office as a whole, the truth isn’t always as above-board as you’ve been led to believe. Here are how two of the models work:

• The office/company uses the “free” shared website to justify an increase in membership fees. In many cases these fees are not even endorsed by the franchise (ie. RE/MAX, Century 21, etc.).
• The office/company charging a monthly “shared website” participation fee are usually making substantial profit on their member REALTORS^®.

I certainly don’t fault brokers and office managers for wanting to make more profit, but I have a problem when it’s not in the best interests of member REALTORS^®.

How “shared websites” fail member REALTORS^®

There are several major problems with the “shared website” philosophy that most REALTORS^® don’t know:

1. Any work invested in a shared website is wasted: Why? Well it’s simple: when you spend time adding ANY content to your “shared website”, it will benefit the website as a whole, and not you individually – it’s equivalent to giving your office manager free labor (that ironically you’re probably paying them to receive!).
2. Leads are few and far between: I’ve spoken to hundreds of frustrated REALTORS^® participating in “shared website” schemes who receive absolutely NO leads, despite spending hundreds of dollars every year.
3. Bad office managers don’t care about your business: If there are 100 REALTORS^® in your office and 10 top-producers, then your office manager can make more money by charging everyone $35.00/month for a “shared website” than they can from commission splits. They’ll do everything in their power to enact mandatory buy-in from REALTORS^® in their office… but they’ll make exceptions for their Top Producers.
4. “Shared websites” take resources away from your brand: Successfully promoting oneself as a REALTOR^® is what separates success from failure. Though it might be comfortable to rely on an office’s or company’s “shared website” to represent one’s internet presence, it detracts from personal brand promotion, reducing the chances of long term success.
5. Changing offices means losing ALL your work: if you’ve invested time into your “shared website” and decide to relocate to another office, then you won’t be able to take any of your work with you.

The Proof

If you don’t believe me then I challenge you to look at any top-producer in your office and examine how they are promoting their brand. I can almost guarantee they have their own personal website and aren’t paying their broker/office manager to be part of the “shared website.”

Conclusion

Only two conclusions can be drawn:

1. Get your own website and stop wasting time on your “shared website”
2. Start charging your office for time you spend on THEIR “shared website”

CREA and the federal government have resolved their dispute.

The Details

Here’s a link the to filed legal document (filed yesterday): ct-2010-002_registered consent agreement_75_38_10-25-2010_4682.

The most important part is contained in item 3 under the “Obligations of CREA”:

CREA shall not adopt, maintain, or enforce any Rules that deny the ability of Members to provide Mere Postings for Sellers, or  that discriminate against Members because they offer, or wish to offer, to provide Mere Postings for Sellers, including, but not limited to, any Rule that:
(a)  prevents Members from offering a Mere Posting;
(b)  prevents Mere Postings from being listed in a Member Board’s MLS^® System;
(c)  discriminates against Mere Postings, provided that the bare  identification of a Mere Posting in a Member Board’s MLS^® System is not discriminatory;
(d)  prevents Members from cooperating with Members that offer Mere Postings;
(e)  prevents Members from:

• (i)  listing a Seller’s contact information in the  REALTOR®-only remarks section of the MLS^® System, with instructions directing interested Members to contact the Seller directly,
• (ii)  including, in the General Description section on an Approved Website, a direction to visit either the  REALTOR^®‘s or his or her brokerage’s website  (whichever site is included as the contact link in the REALTOR^®‘s contact information on the Approved  Website) for additional information about the listing  (without specifying the nature of such additional information), or
• (iii) displaying the Seller’s contact information on a  website other than an Approved Website;

(f)  prevents Members from negotiating and contracting, with  a Seller, in respect of the terms of payment for compensation to  the co-operating Members for the co-operative selling of the property, as long as the offered compensation is not zero; or
(g)  conditions use of, or access to, the MLS^® Marks or a Member Board’s MLS^® System on a Member, or a prospective Member, not offering Mere Postings.

The key points:

• Nothing has really changed, but
• REALTOR^®s now have formal approval to offer flat-fee pricing to put sellers’ listings on the http://www.realtor.ca
• REALTOR^®s now have formal approval to put the sellers’ contact information directly on their own websites

What does this mean?

Not much. Discount listing companies have been operating across Canada for years now, unable to capture more than 3-5% of the market collectively. Just because it’s now formalized doesn’t mean they’ll instantly become successful.

One noteworthy point is that propertyguys.com has almost immediately taken advantage of the situation by joining up with a broker and offering to put listings on the MLS^®. Will this have any effect on FSBOs being shown more? No. Will it eliminate the need for REALTOR^®s to professionally price listings and make competitive offers? No. All it will do is ensure that MLS^® information is more complete and more competitive, and still only accessible to REALTOR^®s.

All-in-all the MLS^® is definitely the big winner.