RE-Targeting

How big is your target market?

How often to do you touch your target market with marketing?

What share of the listings are you taking in your target market?

These are all good Help-U-Sell questions.  Our success has always come from geographic target marketing.  We always begin with a serious marketplace analysis.  We look for those pockets in the market with higher turnover, with 4% – 5% being acceptable and more than that being exciting.  Then we hit those target households hard, with simple, easily understood marketing pieces.

All of that changed when the market went into the tank.  When turnover rates plummeted because houses simply weren’t selling, when it became more important to have a ready, willing  and able buyer to work with than a seller, the targeted, rifle approach to neighborhood domination went out the window in favor of a shotgun blast spread over a much wider geography.  We were no longer attracting business from 5,000 – 12,000 households.  Now we were serving 40,000 or 50,000 (or trying to).

But here’s the thing:  it is not possible to target market to 50,000 households.  It’s just too expensive.  If you did a monthly EDDM outreach to that big a group you’d be spending about $15,000 and running the wheels off your car.

Instead, what you end up doing with a broader geography is trading on the name, the Brand.  A certain number of people in that broad geography already have some familiarity with your program, understand that you can save them money, and will reach out to you if they know you are close by.  These are the home sellers who contact you even if you don’t market.

It’s almost impossible to build market share on that.

This is a challenge to you:  put down the shotgun and refocus.  Do your market analyses.  Find the 5,000 or 7,000 homes in your broad area where turnover is highest.  Pick one and do it right.  Do a monthly EDDM there, crank up a Facebook and/or Google campaign.  Put out your blitz signs.  Faithfully do arounds and just listed/just sold postcards (remember: arounds are around someone else’s listing).

6,000 homes x 5% turnover = 300 sales.  Get 10% of that and watch your business explode!  Once your signs are prominent and you  have listings to market around, you can begin to pare the expensive initial marketing and expand into an adjacent target.

This is how we do it.

 

Microsoft Opens Up

Remember the early days of Microsoft?  at war with Apple in the marketplace and in the courts – each one racing to dominate the personal computer universe – allegations that this one stole that but from the other one and so on.  Seems Microsoft won that early round by focusing on its Operating System and making it available to PC manufacturers all over the world.  Apple kept its OS proprietary and bundled it with its own hardware, relegating itself to boutique status.

But that’s 30 year old news.  When Steve Jobs came back to Apple he took the company in a dozen new directions, and changed everything. Not just Apple, not just business in general:  he changed the world.  We consume music today completely differently than we did at the end of the last century thanks to his Ipod and ITunes store.  The IPhone has replaced the camera as the most widely used image capture device.  The success of the IPad at least contributed to Microsoft’s decision to make its current operating system – which, by the way, is a bit of a disaster – touch capable.

After years at the bottom of the barrel, Apple is more profitable than Microsoft.  The two companies were in a dead heat in 2010.  But look at what’s happened since:

ms

(The steadily rising red bar is Google.  The lion’s share of its revenue comes from its websites, largely via advertising.)

Today, Apple’s core business is not the Mac.  That bit of bundled hardware/software is responsible for only 13% of its revenue.  The IPad is 18% and the IPhone is 55%.  Apple’s core business is now in your purse or pocket!

Now take a look at Microsoft and where its revenue comes from:

70% of what they bring in comes from licensing!  Licensing what?  Well, Windows of course, but there are other things as well, notably, Microsoft Office.   In fact, in the fiscal year ending June, 2013, $16 Billion of Microsoft’s nearly $27 Billion in Operating Profit were generated by the MS. Office dominated Business Division.

Microsoft has a new CEO.  Satya Nadella took over for Steve Ballmer a couple of months ago.  Ballmer was a wild man (the bald guy):

And, he was very protective of Office.  He led Microsoft through a time when it – like Apple – held tightly to its products and property.  It was this protectiveness that enabled Google to gain so much so quickly.  They popped on the scene making their products available for free and also available for anyone to use and develop!

All of which takes us to this week, when Satya Nadella holds his first press conference.  He is expected to announce that Office 365 will become available for use on the IPad.  According to Charles Cooper at CNet, “The decision to make Microsoft’s cash cow available on a product sold by one of its arch rivals not only breaks with a long Windows-centric history, it also sends a signal from the new boss that more big changes are in store.”

The lesson from these tech giants is that the game is always changing, the bullseye is always shifting, and the nature of the business evolves.  Extinction occurs when we stand still and cling to what once was.

Spring Cleaning for Your Electronic Life

Most of us are online a remarkable amount of time.  Thanks to SmartPhones, Smart TVs, always on PCs and so on, often we are online and don’t even know it!  In casual Internet browsing, it is so easy to grant permission to various services and entities to access to your online account information.  It goes like this;  you really want to:

  • Read this article
  • See this video
  • Enter this contest
  • Get this discount code
  • See what your friend posted
  • And so on

But in order to do it, you have to grant some entity ‘permission’ to access your Google/Facebook/Twitter/LinkedIn account.   When you grant that permission, it’s not a one time deal; you are granting permission forever.  That’s why it’s important to periodically review your various lists of permissions and clean them out; and what better time than now? Call it Spring Cleaning!  You can probably accomplish this clean-up in 15 minutes or less and as a result,  you will be just a little bit more in control of your online life.

Start with Facebook.  Log on and go to your NewsFeed (click the ‘Home’ button at the top-right of your screen).  Hover your mouse over ‘Apps’ in the left column and click ‘More’ when it appears to the right.  These are all the apps you have granted permission to access your personal account information and your friend list!  Click the pencil icon to the left of each app you don’t recognize and/or don’t use, and click ‘Edit Settings’  then ‘Remove App.’  If you are like me, it’s gonna take awhile because each app has to be handled individually and there are probably many you don’t recognize!

Next, deal with Google.  Go to google.com and look at the top-right of your screen.  If you see yourself, you’re logged in and ready to proceed.  If you see a Sign In button, do so using your Gmail address and password.  Click on your little picture (or avatar) and select ‘Account.’  Then choose ‘Security,’ and under ‘Account Permissions,’ click ‘View All.’  These are all of the online services to which you’ve granted access to your Google account information, which can be huge.  After all, your Google account includes Gmail, YouTube, Google Drive, Google+, Calendar and on and on.  Select each service you want to eliminate and click ‘Revoke Access.’

On to Twitter.   Sign in and then click on the gear icon near the top-right of your screen.  Click ‘Settings’ and then select ‘Apps’ from the menu on the left.  See what’s there and ‘Revoke Access’ to any you don’t recognize or don’t use.

Finally, LinkedIn.  Log in to your account and hover over your picture at the top-right of the screen, come down to ‘Privacy and Settings’ and click ‘Review.’  On the left, click on ‘Groups, Companies & Applications’ and then on ‘View Your Applications.’  Select any you want to eliminate and click ‘Remove.’

These are the Big Four most of us use on a regular basis, but there may be other websites and social portals you want to take a look at.  Usually these kinds of permissions are located under the Privacy or Security settings in your account.  If you get excited by cleaning up your online act and want to do more, why not take charge of who sees what on Facebook?  Here’s a post about that.  

 

‘Percentage Based Commissions Are Nuts’ Video

I worked with Robert Stevens and the Sarasota Help-U-Sell team to create a new video explaining why the old fashioned way to price real estate services is sooo off track, and why Help-U-Sell makes so much sense in today’s world.  I’m very pleased with it from a content and communication standpoint – I think it gets the message across pretty well.  And I’m delighted with the graphics packaging and presentation.  Design whiz, Theo did an excellent job of putting pictures and arithmetic to my words.

The real estate industry is so invested in the status quo, so utterly driven by structures and systems that have nothing to do with getting property sold, with helping people find their dream homes, that change is almost impossible for them.  For a big real estate company built on the idea that home sellers should pay 6% or 5% or 7% of the sales price as a commission to change over to a much more logical and fair flat fee system would be like trying to turn the Titanic on a dime (and miss that iceberg!).    Yet the iceberg is out there, looming, getting closer by the day and year.

When the percentage based ship goes down, consumers will win.  They’ll be charged for real estate services they same way they are charged for medical services or legal services or auto mechanic services:  Set Fee Pricing.  It will be fair and it will make sense . . . and they will save thousands.

If you are ready for tomorrow, if you’re tired of feeling taken even when your agent and broker do a good job, if you want to be delighted not only with the service but also with the fee, Call Help-U-Sell.  It is the modern way to sell your home.

Discrimination in Housing: A Personal History

I was just reading about the Arizona Bill, currently headed to the Governor’s office for signature, that would enable businesses to refuse service to anyone on religious grounds.  The bill is designed to allow business owners in the State to refuse service to gay and lesbian citizens, but I assume, could be broader.  I mean:  I’m sure it could be construed as an affront to one’s religion to be forced to  serve a woman in a burka or a man in a turban, or even an African American.

No.  I don’t like the bill.  I don’t like it because it is anti-capitalist.  Our society is constructed around the notion that we are all consumers, all vendors.  We are about offering goods and services for sale to anyone who has the cash and wants to buy.  Any legislation that stands in the way of that goes against the grain of our National DNA.  Besides, how are the business owners who invoke this Bill as a rationale going to tell who’s who?  Are they going to force suspected undesirables to show their secret gay membership cards?  Are rainbows going to be banned?

I think it would be so funny if Michael Sams, the first openly gay football player headed to the NFL, were drafted by the Arizona Cardinals.  Would these uber-religious business owners refuse service to that millionaire?

namaddox_t640I keep thinking about Lester Maddox, who in 1964 – after passage of the Civil Rights Act – held a group of  3 African American Georgia Tech students at bay outside his restaurant near in downtown Atlanta.  The ax handle he brandished became a symbol of sorts, that he later marketed and (gulp) autographed.  Maddox went on to  be the 75th Governor of Georgia after serving as Jimmy Carter’s Lieutenant Governor.

If the Arizona Bill had been law in Georgia in 1964, I’m sure Lester Maddox could have found some religion that would justify his actions.  But we didn’t think like that back then.  We just thought he was an ignorant racist.  His election proved that he was not alone, not by a long shot.

I started selling real estate around Atlanta in the late 70s.  Race was a hot topic then as increasing numbers of middle-class African Americans sought the better schools and safer surrounds of the suburbs over the blighted inner-city.  Us Realtors were cautioned against something called ‘Block-Busting,’ where a Broker would sell one house in an all-White neighborhood to an African American family and then canvas the area creating fear of falling values and rising crime to take many more listings and make many more sales.

I worked an area East of the city, around Decatur and Stone Mountain (home to a large carving of Confederate Generals riding across the side of the mountain and off into glory), where many brave African American Atlantans  from downtown chose to move.  Often these were my clients.  I remember being impressed.  These were the most American of my clients, working hard and taking risks to ensure a better life for their families and their children.

I remember one man – a UPS employee – I helped to sell a house, buy a better one, then a few years later, buy an even nicer one.  He and his family were special to me because the buyer of that first house he sold?  It was me.  In a 180 degree twist on the Exodus of the day, I did a little reverse Block-Busting, and became the only White resident of an African American neighborhood.  And we all got along just fine.  As Americans we were all interested in the same thing:  Our Property Values.  We all wanted neatly kept lawns,  freshly painted trim and a lower crime rate.

I got a couple of nasty calls from the neighborhood where my friend bought, and a couple of For Sale signs went up – not with me, because I didn’t play that ugly card – but by-and-large, people just went about their business and continued to work to make their neighborhood the best place it could be.  It seems strange to even mention that today, but remember:  this was the Deep South in the Late 70s.  Race was huge.

So huge that in the little town of Avondale Estates, smack-dab in the middle of my area, the local Realtors got together with the city leaders and agreed to ban For Sale signs.  The plan had two objectives.  First, it forced anyone wanting to find a home in Avondale to contact one of the local Realtors (ca-ching!).  Second, it gave the local Realtors the opportunity to screen who they would give the information to.  So, if you sounded African-American on the phone, suddenly there were no homes for sale in Avondale!   For Sale sign bans were quickly the subject of a few court battles and were eliminated.

I opened a real estate office in the distant suburbs:  Lilburn, in Gwinnett County.  It was a growth area with lots of new construction and today is considered close-in.  Back then, it was the sticks.  I remember the day, shortly after I opened, that I was Tested.

The Department of Housing and Urban Development (HUD) was said to occasionally send two sets of ‘buyers’ into the same real estate office, one White, one African American, to ensure that they received the same service.  My Test started with a walk in:  a well dressed White man who quickly told me about his income, his debts and his cash-on-hand and then asked to see 3 bedroom ranches in Lilburn.  I lined up three and off we went to tour.  He didn’t seem very interested in what I showed him and was vague about getting together over the weekend to look again.

A couple of days later, I got another walk-in.  This time it was not a so nicely dressed African American woman with a well-behaved child.  Her financial profile was very similar to the man I’d helped two days earlier and surprise, surprise:  she was also looking for 3 bedroom ranches in Lilburn!  That was easy for me: I’d already done the research for the other guy, so we hopped in the car and drove off to see the same three houses.

I never heard from either buyer again, but I didn’t expect to.  I knew I’d been tested and I knew I passed.  What they were looking for was evidence of ‘steering’:  showing two buyers with similar needs and capabilities different properties based on race.  In general, local Realtors did pretty well with this test, but some well-established members of our real estate community did not.  There were fines and a revoked license or two.

Today I live in Southern California and discrimination seems to have little impact on the real estate market or individual real estate decisions.  Our neighborhoods are diverse and it seems anybody can easily live anywhere.  Again, it’s that Capitalist thinking:  if your money is green, you can buy here, there, anywhere you want!  But I remember when I moved here in the late 80s,  I saw discrimination at times more glaring than what I’d seen in the South . . . only this time it wasn’t directed toward African Americans.  It was directed at Hispanics.  My impression was, if you looked Hispanic and were in Irvine or Mission Viejo . . . well, you’d better have a rake or mop in your hand and a ticket out after sunset.  That was my impression.  Things are very different today.

Discrimination is the decision we make about what is good, what is not so good, what is better and what is best.  Discrimination is a good thing when it comes to food, wine, issues of taste, fashion and culture.  When applied to people, though, discrimination is a terrible thing.  It requires that we look at people not as individuals but as members of a group or class, and to make individual decisions on them based on our impressions of their group or class.  I don’t think discrimination of the human type has any place in America.  Here we create stuff, sell and buy it, and anybody can have a piece of the pie.  Period.

I have one final memory of discrimination and housing I want to share.  It involves a fellow named Otis, who owned 5 acres out in the country a few miles from my Lilburn office.  One of my agents, Carol, had a buyer who was looking for a place to build a house and have horses.  Carol showed Otis’ property and the buyer loved it.  She wrote and offer and took it over to the Seller.  Before she could even begin presenting the details, Otis asked what must have been the most important question he had about the transaction:  ‘What color are they?’  Carol thought for a moment and then said, ‘I don’t know . . . I didn’t ask.’   And she gets a gold star for that one!

And, Governor Brewer?  I’ve got a gold star for you too if you refuse to sign that stupid bill!

 

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