Five strategies to earning full real estate commissions
Part 4: Defending full-service business models

Friday, April 29, 2005

By Bernice Ross
Inman News

(This is Part 4 of a five-part series. See Part 1: Stop real estate 'commissionectomies'; Part 2: Company values at heart of battle for real estate consumers and Part 3: Get rich in a real estate niche.)

Putting a property on the MLS, advertising it on the company Web site, placing an ad in the paper, and word-of-mouth are about the only ways to sell a property – right?

If you work for a full-service company and agree with the above statement, it's time to rethink your unique selling proposition.

Last week's column examined how important it is to incorporate niche marketing into your unique selling proposition. That article also outlined seven different strategies for marketing your listings. In my book "Waging War on Real Estate's Discounters," I outline more than 50 other strategies. The question full-service brokers must address is, "How many strategies are you currently using to market your listings?" If you're only using the limited-service value proposition, then sellers really have no reason to pay you a higher commission. To earn a full commission for full service, consider implementing any of the suggestions from last week's column plus a minimum of three of the strategies outlined below.

1. www.YourPropertyAddress.com

Whether you personally design a custom Web site using the seller's address as the URL, register the domain name, and link it to your site, or use a company like AgencyLogic.com to do it for you, few sellers can resist the idea of having a special Web site devoted exclusively to their home. In fact, one of the top buyers' agents in the country has purchased over 300 of these sites in the last year. He gives them as gifts to his buyers. This keeps the referral pipeline running while simultaneously driving more traffic to his Web site. It's also a high probability strategy for turning that seller lead into a signed listing.

2. Post multiple pictures and virtual tours on Realtor.com

Whenever I speak on how to obtain more listing business, I always investigate what percentages of that city's listings are posted on Realtor.com with multiple pictures and/or a virtual tour. The number normally ranges between 8 percent to 15 percent. In other words, 85 percent of your online competitors only use a single picture to market their listings. Research from Realtor.com shows that Web visitors skip over properties with only one picture and focus on those properties with multiple pictures. If you haven't noticed, Realtor.com has a button Web visitors can click on that shows listings with multiple pictures and virtual tours first. Given the low percentage of agents using this approach, coupled with the fact that many agents do not even advertise on Realtor.com, this is a simple strategy for knocking out the competition.

3. Ninety-day marketing plan

On your last listing consultation, did you provide the sellers with a checklist of all the ways you will be marketing their property? Did you ask the sellers if they would like to select the pictures you will post on your Web site and your company's Web site? If not, it's time to put a ninety-day-marketing plan together using your company's value proposition, your specific plan for target marketing to high-probability buyers, as well as your marketing plan to reach the brokerage community.

4. Pay-per-click Web advertising

Surprisingly, most major full- and limited-services companies are still not marketing aggressively using pay-per-click advertising on the major search engines. Companies such as HomeGain and Service Magic do have top placement in many major markets. What this means is that there is an excellent opportunity to compete for business using pay-per-click advertising or services such as Google Ads. In fact, this opportunity has expanded since Google launched its local Web site products. An excellent strategy for knocking out the competition is to have sellers visit the major search engines and see your ad prominently placed, especially when your competitors are not there. One caveat: Do not be tricked into paying money to companies who promise you number one placement on the major search engines. No one can guarantee that because the search engine companies constantly change the rules for placement. Instead, speak with your Web site provider and/or hire a search engine specialist. The search engine companies also have excellent guidelines on their sites. Be sure to check out Google, MSN, Yahoo! and Overture.

5. Guaranteed Delivery of Promised Marketing Services

Many full-service companies already provide this. If you fail to deliver on the marketing services that you promise the seller, the sellers have the option of having their listing assigned to another agent. If the problem is severe, they have the option of canceling the listing. This approach normally alleviates any concerns the sellers have about making a wrong decision. What's surprising is how few sellers elect to be released from the contract. In contrast, some of the limited services models keep their sellers married to their listing until it sells or expires, regardless of whether the sellers are happy with the level of service.

These strategies are excellent ways to close the sellers on working with you, provided you can get in front of them in the first place. To learn more about how to stop the commissionectomy trend, see next week's column.

Bernice Ross, co-owner of Realestatecoach.com, has written a new book, "Waging War on Real Estate's Discounters," available online. She can be reached at [email protected].

***

What's your opinion? Send your Letter to the Editor to [email protected].

Copyright 2005 RealEstateCoach.com


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