Personal Marketing

I was there in the 80s when the concept of Personal Marketing was born.  Re/Max had swept into the industry and turned the spotlight squarely on the the agent . . . the agent who did exactly what every other agent did, who had the same tools, the same program.  That was the problem:  how do you market something when what you have to market is exactly what everyone else has to market?  The answer was:  you don’t.  You don’t market what you do.  You market yourself.  You become your own brand.  And over time you create a belief that, while what you do isn’t all that different, who you are is.

Here:  think about cars for a minute.  Think about Dodge cars.  in the 80’s there was nothing at all spectacular, different or unique about Dodge cars.  That was pretty much true about all American made cars in the 80’s.  Now try to think like a Dodge dealer:  you’ve got the same product every other Dodge dealer has.  You have essentially the same financial deal with the manufacturer that every other Dodge dealer has.  You have the same pool of salespeople and service people to pull from, the same financing avenues. There is absolutely nothing unique or different about what you have to offer. How do you sell more Dodge automobiles than the other dealer across town?

Cal Worthington was up to that challenge.  He pretty much quit marketing Dodge cars and started marketing Cal Worthington.  He did crazy stuff:  did a commercial while wing-walking on a bi-plane, dressed up in a gorilla suit, made a pitch while skydiving, ate a bug, ‘stood on his head ’til his ears turned red,’ and so on.  Usually in his commercials, he’d introduce his dog Spot, who was never a dog at all.  It was a tiger once, a lizard, a Killer Whale, even a Hippopatamus.  I can still hear his jingle:  ‘Go See Cal! Go See Cal! Go See Cal!’   And people did go see Cal.  I’m not sure how many people trusted Cal or thought he was up to anything more than negotiating the best possible deal for his dealership.  But people wanted to go see that crazy guy . . . personal marketing works.

In the late 70’s The Personal Marketing Company was born and brought this concept to the real estate business.  It was the right idea at the right time. Agents who, like Cal, who had the same Dodge as the guy  across town, had the same tools, same procedures, same methods for making sales, were hungry for a new twist on marketing.  As Personal Marketing gained traction, we watched the real estate company logo on the For Sale sign shrink and shrink until it became the fine print at the bottom.  We saw the agent’s name and photo become larger and larger.

The Personal Marketing Company was largely about product.  They had all kinds of newsletters and postcards to sell to agents that would accommodate their individual branding.  But in the 80’s Hobbs and Herder showed up to teach people how to market themselves, and that’s when everything really shifted.

Remember a month ago or so?  I did a post about an amazing open house I encountered.  There were dozens of directionals, all with pink flourescent flags on top, all featuring the agent’s branding leading to the house.  Along the route there were companion bus benches.  It was impressive.  But while I was writing the piece, I wondered what company this person worked for.  It wasn’t clear on any of the signage.  The signs were pretty unique:  all pink and green, but the only name on them was . . . the agent’s.  So I went to her webiste and there it was, burried in the fine print at the bottom of the page:  she worked for Keller-Williams.  The message to the consumer is clear:  my company has nothing special to offer.  We’re just like everyone else.  But me?  I’m special.  You should be doing business with meeeeee.

Today, my buddy, Ken Kopcho sent me a video from the Tom Ferry Organization.  He’s promoting his ‘Success Summit’ coming up later in the year (How the heck did he end up with the same name for his annual meeting as ours?).  Here: check it out:


The ideas are good.  But it’s all about personal marketing, marketing who you are, not what you do.  It works and I approve for Realtors everywhere.

But Help-U-Sell people are not generic Realtors.  We really do have a unique system that works.  The consumer experience is completely different with Help-U-Sell.  In short:  we have something real to market.  We don’t have to create a fictionalized persona to grab the interest of consumers.  All we have to do is distribute the message that:  We Are Here, People Use Us, It Works, and They Save Money.

Somewhere close to one of Cal’s dealerships was a Honda dealer.  Who knows who the owner of that dealership was:  that’s not what they were marketing.  They were marketing a product that was different.  Their ads said:  We Are Here, People Buy Our Cars, They Don’t Break Down, They Get Great Mileage, and Our Customers Are Happy.

The Wall Street Journal lists the top 20 vehicles in order by unit sales.  For 2012, year to date, they show Dodge with one vehicle in the top 20:  the Ram Pick-up.  114, 630 have been sold so far this year.  Honda has three cars in the top 20:  Civic, Accord and CRV.  Total sales for those vehicles is 384, 736 units so far.  Love you, Cal, but guess who won the war….

The point is this:  Help-U-Sell people, yes:  do market yourself.  Be personable.  Be likeable.  But remember why people do business with you.  It’s not because of the gorilla suit you wore last Halloween.  It’s because you are unique, you have a program that works, your brand means something and the Help-U-Sell consumer experience is superior.  THAT’s something to market.

 

Working with Friends vs Working with Strangers

With whom would you rather work?  I know, I know.  You probably just blurted out ‘Friends! Of course!’  That’s a natural response, one that is in line with conventional residential real estate thinking where your goal should be to build a 100% repeat and referral business within three years.  If you’ve ever been to a real estate sales training program or seminar (picture: Brian Buffini), what you probably learned were techniques for adding lots of people to your corral of friends and then extracting business from them.

But I just read an excellent (and short) blog post from our friend, Kirk Eisele (who I just invited to pop in here from time to time and contribute a post or two), that brings clarity to my own discomfort with that approach. (Stop now and read it HERE, then come back)

True Confession:  in my own real estate career I didn’t do a good job of converting my friends into customers.  I didn’t want my friendships to be about my business; or rather,  I was not good at keeping friendships about friendship while injecting my business into them.  The idea of constantly talking with everyone I know about real estate was not my style.  Allright:  I sucked at it.  And I always saw that as a failing.  Kirk’s post helped me see it not as failure but as honest recognition that I am a marketer at heart.  Of course, you already knew that.

I guess this explains in part why I fell in love with Help-U-Sell.  This is a marketing driven business system.  It is real and tangible and can be packaged and presented (marketed, sold) to consumers who quickly come to the logical conclusion that Help-U-Sell is a good idea.  It is NOT personality driven.  It’s not about who you know and whether they support your business (though we all need all the friends we can get), but relies on a solidly different and better apprpoach to the business for success.  Help-U-Sell is for Marketers . . . and for Connectors who can learn to market.

This is not to belittle the Connectors.  With quite a few notable exceptions, most of the successful real estate salespeople held up as models for us all are Connectors.  Some of our best Help-U-Sell brokers are Connectors.  But ALL of our Help-U-Sell Brokers are Marketers.  It goes with the territory.

The simple fact that you’re building a business based on sound business principals (as opposed to building one based on who you know) makes the business more valuable.  Richard Cricchio has built one heck of a Help-U-Sell business in Hawaii and though he is the voice of real estate in his weekly radio show, if he were to sell his company to a qualified candidate who follows the same plan, the company would probably not skip a beat.  If his business was built on family, friends, neighbors, past customers and clients, anyone buying the business would realize that once Richard went away, so would the business.

Back to that initial question I asked:  With whom would you rather work? Friends or Strangers?  Let me blur the lines a little:  how about Friends or Strangers and Former Clients?

I’ll take the latter every day.  Strangers and former clients make the decision to work with me based on the efficiency and effectiveness of my program.  Of course they have to be comfortable with me, but they don’t make the buying decision because of our long and rich history together.  On the other hand, my experience working with friends and family is, honestly:

they usually expect a deal,

one that usually impacts my income.

At the end of the transaction, though everyone is all smiles, somewhere in the back of the the Friend’s mind is the nagging question:  ‘Did he really give me a good deal?’  Meanwhile, that stranger I just converted into a client and a sale is delighted over the great service and low fee I charged.

How Do You Present Your Pricing Today?

Here is a blast from the past . . . well, from six months ago. I just re-read it and it occurred to me it’s an important message for right now. Please give this a little consideration, Help-U-Sell folks.

Help-U-Sell is certainly NOT a For Sale By Owner company.  Yes, it’s true:  in the late 70’s Don Taylor pioneered the use of the phrase ‘For Sale By Owner’ on the Help-U-Sell For Sale sign.  In time, that phrase morphed to ‘For Sale With Owner,’ but the intent was never for Help-U-Sell to be a stripped down FSBO package vendor.  Our vision has never wavered from the notion that Help-U-Sell is a full service real estate company.

Having said that (and fully embraced it without reservation), I think it might make sense to examine our Consumer offer – the one to Sellers, specifically – and how we present it.

Pictured below is the graphic that is often used with sellers as we talk with them about putting their home on the market.  It acknowledges that there are really three ways a home might sell and prepares the seller for the good news that we charge them, not on some arbitrary percentage basis (no matter how the house sells), but on a logical pricing model that varies depending on how it sells.  This chart forms the real heart and soul of most Help-U-Sell listing consultations.

*Note:  the savings in this example are versus an ordinary broker charging, say, 6% commision on a $300,000 home.

We use the first option, the ‘You Show’ option to talk about seller involvement in the sale process through holding open houses, showing prospective buyers through and talking the listing up at work and in the neighborhood.  If they procure their own buyer in this way, then the Low Set Fee is all they pay; which means  maximum savings.

The second option, ‘We Show,’ is the place where we introduce the idea that one of the Buyer Agents in our own office may be working with a buyer for whom the home might be perfect.  If the seller opts we can include this option as well. (Notice, in this example, the broker charges a set fee on the showing side too and it’s equal to the listing set fee.  There are variations out there, but let’s remember: we are a set fee real estate company.  Shouldn’t the showing fee also be a set fee?)

Finally, option three has us putting the listing in MLS and having the seller be prepared to compensate an outside company and agent should they have a buyer and affect a sale.

Regardless of which options are selected at the time of listing, the seller will always pay based on how the house actually sells.  Even if we put it in MLS, if the seller ultimately finds his or her buyer, all they pay is the option one price: the Low Set Fee of $3,950 in the example.

There was a time when many sellers opted for  option one or one and two, choosing to stay out of MLS all together, thereby ensuring a large savings.  With the downturn in the market, however, this has become a rarity.  Most sellers, with the advice of their Help-U-Sell brokers, want to pull out all the stops when it comes to initial marketing and so go into MLS from day one.

All of this brings me back to option one.  I think it might be helpful to remember that a whole lot of marketing  happens in that option:

  1. A proper price is recommended.  Any truthful agent will admit that 75% of marketing is done the night the home is placed on the market, when the seller chooses a price.  Properly priced homes, marketed well, sell. Period.  Improperly priced homes don’t sell, regardless of how much marketing is done.   That simple Low Set Fee option comes with the credible advice of a knowledgable expert (you) on matters of pricing, terms,  fixing up, showing procedures and a multitude of others things.
  2. The brilliantly beautiful RED Help-U-Sell for sale sign is installed in the yard.
  3. Flyers on the property are created and made available inside the house and out.
  4. Directional Signs, Open House Signs, Sign-in Registers and other tools for holding an effective Open House are given to the seller along with expert coaching on how to hold a effective Open House event.
  5. The Buyer Agents in the office are briefed on the home so that they can talk intelligently about it when inquiries come into the office and do so in such a way that caller interest is maintained, even heightened.  And what do we do with these inquiries?  If the only option the seller has chosen is option one, we send them directly to the seller for showing.
  6. Dozens of photos and a virtual tour are created for the listing so that potential buyers can see it in its best light when deciding whether to proceed with a showing.
  7. The listing is input into www.helpusell.com and is available there for prospective buyers all over the world.  In addition, once on helpusell.com, the listing is syndicated out to dozens of other consumer oriented real estate websites for maximum web exposure.
  8. A QR Code for the listing is generated and made available for use on flyers and on the For Sale sign so SmartPhone enabled buyers can get the information they want, when they want it.
  9. A knowledgeable expert (again, you) is available to help with questions and concerns, to write any purchase agreement and to handle all the details of transactions processing and coordination all the way to and through a successful closing.
  10. And more . . . meaning that every office has other things they may do on an option one only listing.

Look at that list!  That’s a lot of stuff! And you know what?  That may be enough to affect a sale even in today’s tough market, a sale that could yield a very happy seller who saved thousands!

I’m not suggesting you abandon the MLS (although I am looking forward to the next generation MLS – the one that is not connected to your Board of Realtors and whose policies don’t restrict your business).  However, I’ll go back to what I said earlier:

A properly priced listing, marketed well, will sell.  Period.  And that applies no matter what the market realities.

Maybe it’s time to start offering this option more vigorously to our equity sellers who are willing to price right and are interested in saving maximum dollars.  It’s hardly ‘For Sale By Owner.’  It’s full of good marketing and advice.  And remember:  there is a direct coorelation between seller savings and seller delight; between seller delight and word-of-mouth advertising; between word-of-mouth advertising and the growth of your business.

 

 

 

 

 

Please Do The Analysis!

On today’s Power Hour Web Conference, I asked all Help-U-Sell brokers to do a little analysis.  I asked them to see just how accurate the big real estate aggregation sites (Trulia, Zillow, et al) are in their local marketplaces.  I asked that they search for homes for sale in a reasonable, manageable price range in their own Zip Code on, say, Zillow  and then to compare those results with the same search done on the MLS.  This is the same experiment the broker mentioned in my last post did – the one where she found 159 bad or questionable listings out of the 220 her search turned up on the aggregator site.  But I’m asking Help-U-Sell people to go one step further:  identify which listings on the aggregator site are not in MLS and then find out why.  Are they duplicates?  Old sold listings that have not been purged?  Are they FSBOs or broker listings not on MLS?  It’s probably an hour’s worth of effort but I think it will pay big dividends.

See, the aggregators are getting slammed right now for having bad or stale data.  It is my belief that the housing information available on your own Help-U-Sell website with an IDX feed from the local MLS is far more up to date and accurate than anything a national site could offer.  What I want to do is document that – locally, office by office.  We can then start talking with consumers about this and (hopefully) switch them off the national sites (where they are vulnerable to any agent)  and on to our own.

Please, Help-U-Sell Brokers: Get Busy!  Do this book work and share your results with me.  And if you’d like a little inspiration, check out this article from today’s Inman News

 

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