A lesson in push(y) marketing.

by Kris Berg on February 17, 2008

A lesson in push(y) marketing.

Kristn.jpg 

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“Who is Erma Bombeck?”

This was the only reaction I could elicit from my oldest daughter, a too-cool-for-the-room teenager who is certain I was born during the Ming Dynasty. She’s not far off. But with age comes wisdom… or does it?

She is about to make her outmigration to college, and this college, in her mind, is a place where they will teach her everything she needs to know to be a successful (in her case) journalist. I’ve been there, and I know better. A diploma doesn’t necessarily signify that you have been trained; it says that you are trainable. Your degree doesn’t assure your future employer that you have learned what you need to know, but that you have demonstrated the capacity to learn.

In my college, I was taught a lot of stuff, some of which I still remember. I learned about Budding and Fission in Botany and the Yanomamo in Anthropology and Open Channel Hydraulics in Fluid Dynamics. Rarely have I found the need to watch my staghorn fern reproduce in a culvert while fending off violent Amazonians, but that’s not the point. The point is that after demonstrating that I could figure out this stuff, I was prepared to live in the real world and figure out that stuff.

I noticed that your home has recently come off the market.

Uh, oh! Somebody has completed their Broker training!

Last week, we let a listing expire. We did this because it was a short-sale situation, and the seller was able to renegotiate the terms of her loan with her lender. This was wonderful news, of course. So, we did what we always do when a home is withdrawn from the MLS – We removed her phone number from the listing before it expired.

If you aren’t an agent, you might not get this, but agents understand. An expired listing is like carrion, and the circling starts almost instantaneously. Agents are taught that “working expireds” is an excellent opportunity to procure new business. What’s more perfect? Instead of beating the bushes for potential prey, an expired listing represents someone who had the desire to sell but didn’t. And, when that listing disappears from the MLS is when agents move in for the kill.

First, I have to give the back story. In the case of our expired listing, we had initially (months ago) entered the wrong phone number for the seller in the MLS. Ironically, the number we did enter led to the cell phone of another area agent. This error was corrected during the first hours of “active” status but, unbeknownst to us, the damage had been done.

I guess I need to get out more. Apparently, there are hundreds (thousands?) of agents out there subscribing to a service that grabs these listings at birth and banks them for future sale, a work-around to the old deleting-the-number-at-cancellation practice. Consequently, we received a midday call from our poor, frazzled agent who, having spent his entire morning fielding calls from Top Producers in a position to help him sell the home he didn’t own where the agent he hadn’t hired had failed, was begging for mercy.

Forget everything you learned.

If our agent training focused more on developing critical thinking skills and less on delivering prescriptive methods to achieve success, I argue we would all be better off. Take “working expireds” (please). As both an agent and a consumer, if I fire up my frontal lobe for just one cup of coffee, I recognize this practice as spamming at its worst.

Let’s think about reasons why the owner of a property which “failed to sell” might not heed my early morning agent call to action:

  • They are busy on the other line accepting an offer to save money on their long-distance phone bill;
  • They knew in advance that their listing was going to expire, where you did not, and have already made arrangements to relist;
  • They ultimately decided not to sell, for whatever reason, and therefore the “lead” you are chasing is not a lead at all.
  • In the event that they do intend to relist and have not decided with whom they will do so, you are the 894th person to call them this morning, and now they are really pissed off – at all of you.
  • They asked that their phone number be removed from the MLS so agents wouldn’t be calling them, and you just did.
  • They hate spam.

The proponents of the expired listing game claim that the key to your success will be in making a distinction. How about this? Distinguish yourself by not calling, and use that valuable time to consider a marketing approach which might actually appeal to your audience, not turn them off. Spam, just because it comes from you, is still spam.

Whenever I consider a marketing approach or piece, I ask myself one simple question: Would I respond favorably to this approach if the roles were reversed? Where calling expired listings is concerned, unless you are someone who just accepted one of the forty-seven offers you received in your mailbox last week to refinance your home or transfer your credit card balance or lower your auto insurance payments, I suspect you would not. Sure, someone along the way may bite, but in the process you have left a wake of destruction, and our image just might be found among the debris.

I know, I know. There are a lot of agents out there who are not going to agree with me, agents who have had much success finding business through approaching “expireds.” That’s fine. Every agent needs to generate business; having business is how we make money. Over time, we each learn to apply our own unique strengths in finding our own unique approaches to success. What works for me won’t necessarily work for another. Yet, if working expired listings is one of the ways in which an agent attempts to grow their business, maybe mailing a compelling case for their services will be better received than hosting the 7:00 AM telethon. It is still “push” marketing, but it’s a little less pushy.

For me, there has to be a better way. I would rather spend my energies doing things that might inspire people who want to sell and have failed to call me - or, gasp, call me in the first place. But, then, what do I know?


ABOUT THE AUTHOR  Kris Berg is Co-Owner and Designated Broker of San Diego Castles Realty. If not-so static web sites are your thing, go here at once where you will find loads of real estate information including homes for sale, market trends, floor plans and more. Kris's hobbies include fencing and spot welding. She likes kittens.


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{ 22 comments… read them below or add one }

SvenNo Gravatar February 17, 2008 at 7:12 pm

I’m really glad I don’t work in real estate. It sounds little too dog-eat-dog for me.

Kris BergNo Gravatar February 17, 2008 at 7:16 pm

Sven – That is the seamy underbelly. The other side of the coin is that it can be the most fulfilling, rewarding business in the world, and I enjoy it more than anything I have ever done.

Phil HooverNo Gravatar February 17, 2008 at 7:28 pm

Sven ~
I am now in my 35th year in real estate and still enjoy helping people solve their real estate problems/meet their objectives.
There is no greater high than to help a client get what they want, then have them give you a hug/kiss (females only) :)

ARDELLNo Gravatar February 17, 2008 at 8:35 pm

I heard Phil was giving out hugs and kisses, so I hurried over. I think an mls system that requires the owner’s number be posted (like ours) is breaching the owner’s right to privacy. Clearly the owner should decide whether or not they want their phone number published, not the mls.

Kris BergNo Gravatar February 17, 2008 at 8:43 pm

Agreed, Ardell. (Lay off Phil, by the way – He’s all mine!) The number is in the agent printout, not the client printout. Therefore, we must assume that someone who has membership with the Board is confiscating and banking the listings at birth for future sale.

The MLS has a “confidential” (agents only) entry for seller phone number to facilitate showings. Absent that, all showings would be by appointment only with the lisiting agent. While we do this often and willingly, you will likely agree that any showing restrictions tend to limit exposure. So, back to the basic premise; agents need to behave in a professional manner!

Jamie GeigerNo Gravatar February 17, 2008 at 10:48 pm

Many agents are taking it to the streets with expireds- door knocking expireds-ewww. I know that I do not like strangers at my door nor do I like strangers calling me. So expireds are not apart of my business. I agree with the other side of the coin- Real Estate is very rewarding when you find a family a home and how much joy and excitement it brings to each family and the lasting frienships that you develop.

Brian BradyNo Gravatar February 18, 2008 at 1:22 pm

“Distinguish yourself by not calling, and use that valuable time to consider a marketing approach which might actually appeal to your audience, not turn them off”

That’s the Black Pearl, Kris. I read this and wondered why you wouldn’t want to talk to expireds, the first time, when, in reality, you were saying work expireds EFFECTIVELY.

Kris, are agents banging on their doors? How are agents effectively communicating with this market?

Doug QuanceNo Gravatar February 18, 2008 at 3:19 pm

Amen.

I used to work expireds… until it became painfully obvious how obnoxious the whole system had become with thousands of agents doing the same thing.

When we let my girlfriend’s home expire before relisting it, I couldn’t believe the number of calls and pieces of mail we were getting. And this was a few years ago… I can’t imagine what it would be like today.

Now, the big players are picking up most of the expireds…. but they can’t sell them with any regularity, either.

Kris BergNo Gravatar February 19, 2008 at 6:59 am

Doug – Yes, it’s worse now.

Brian – How? Well, we know they are calling, and I suppose they are mailing. And just to be clear, it’s not that I don’t want to talk to sellers whose listings have expired, but just that until someone invents a graceful way to do it, I have taken a pass. We have adopted an approach to our business marketing of focusing on the pull versus the push(y).

Don ReedyNo Gravatar February 19, 2008 at 9:26 am

Kris,

Your approach of pull versus push is really your way of exhibiting class, which is a byproduct of respect and restraint in our interactions with each other. Unfortunately, restraint, actually thinking about what the other person feels and taking only those actions that consider those feelings, is just about as antiquated as the Yanomamo. As for me, I chose to listen to my inner voice, and working expired listings, isn’t calling out to me in any audible way.

Kris BergNo Gravatar February 19, 2008 at 9:43 am

Don – Dang, you’re good! Would you consider a position as my ghost writer?

Joe HaydenNo Gravatar February 19, 2008 at 3:16 pm

Kris…

I tried the expired route for a bit, and even had a little success, but I just don’t like the ‘blood in the water’ feeling I get from these types of approaches.

I let a listing expire the other day because I am changing brokerages and the seller wants to re-list with me at the new place. His quote was – “I haven’t had room in my mailbox for anything else for three days!” I kinda felt bad. I warned him, but it was inevitable and the barrage of crap he received surprised even me! One more reason why some don’t hold our profession in the highest regard.

Jaco ViljoenNo Gravatar February 21, 2008 at 5:39 am

I am an estate agent in Benoni(south africa).
I must admit when i started as an Agent i started this way and did very well for myself.
It is a lot of work though.
I have recently started my own office and still teach the new agents to do this but also a lot of other things.
My fav way of getting business is through a newsletter.
My blog with integrated letter is my long term goal, but to speed things up a little I have printed out some of my posts and have them distributed to an area weekly.

Great blog keep it up

SvenNo Gravatar February 21, 2008 at 5:29 pm

Phil,

I’m pretty sure Steve would mind if I went in for the Hug and Kiss on Kris. I’d have to distract him first. “Hey Steve, look over there. It’s a fully qualified and motivated buyer!”

Kris BergNo Gravatar February 21, 2008 at 8:14 pm

Funny, Sven. :)

NSRNo Gravatar February 23, 2008 at 9:34 am

I am a new agent starting out in NY. I have had my license for about a year now, with Keller Williams. My husband and I work as a team. We are having a hard time getting any business. Were both college educated, my marketing efforts of mailings havent brought any business. We do not do any calling, for fear of what you mention here. What seems to work for me presently is free online classifieds, but we want to get some local listings. Some in our office lend advice that we must call. What is your input on this? My next move is a blog for our area, very exclusive area, no blogs that i can see. Also, how can we go about getting a good blog? should we do an SBI site? (sorry, so many questions! ) thanks all :)

Kris BergNo Gravatar February 23, 2008 at 10:25 am

NSR,

Steve and I chat often about how difficult it would be to become established if we were new to the business today. I am by no means the final authority on any of this (there are as many ways to approach building your business as there are agents), but I’ll share a couple of my thoughts:

1. Your marketing should be consistent and continuous. Give any effort at least a year before you expect to see measurable results.
2. What works for one agent is not necessarily what will work for you. Find what you excel at and, mostly, what you enjoy. If you loathe the task, you less likely to follow through.
3. You might guess that I am a big proponent of blogging, but see #1. It is a process, not an event, and it requires much time and effort. On this note, we have enjoyed much more success by marketing our blog locally than by being overly concerned with SEO. It is the customer in our neighborhood that we are ultimately trying to reach out to.
4. There are a lot of great companies that will help you set up your blog (for $$). But, setting up your own isn’t all that difficult. I Googled my way through it at the beginning and at a point where my first search was along the lines of “what is a blog?”
5. Read, investigate, and learn, and, with commitment and hard work, you will find a way to build your business. If you are asking about blogging, then you are on the right track, because you are already willing to consider “pull” versus “push” as a marketing strategy. Again, think like a consumer, and deliver your message in a way that you, as a consumer, would be most receptive.

Good luck!

NSRNo Gravatar February 23, 2008 at 10:59 am

Thanks Kris! I love this site, you are so helpful as well. Sometimes there is so much pressure, we want to give up. Many in our office are incredible high earners and top producers, who have been in the business for a long time. It makes us feel overwhelmed. Do you think floor time is something that would help us? We are not offered that in our office, and I am thinking of joining another office in a reciprocal state that offers floor time, but lower commission. In our area, a few sales a year would be enough for us to bring in a great income, so now… to find those clients! :) Thank you again.

Kris BergNo Gravatar February 23, 2008 at 11:26 am

Thank, YOU.

Don’t give up! It takes time.

Floor time, I guess, depends on the dynamics of your local market. In our neck of the woods, all of the listing agents brand their signs and ads, including their own number, so all calls go directly to them. Floor time, here, is all but history. If you have an office with a good location which might generate walk-in traffic, it is of course an excellent way to get the introduction. I suspect over time floor time will become antiquated everywhere, simply because the information is now available to the consumer online. No longer is there a need to waltz into the office to find an agent or get that “free list of homes.”

As an aside, one of the first important business decisions I made when starting out was to quit looking at the office “board.” The success of others does not diminish your own, and while seeing those “top producers” can tend to inspire, it can also tend to distract (or, as you put it, “overwhelm”). Better to forget about what they are doing and worry about what you can do, I think.

P.S. I am running to a meeting, but check your inbox later today. :)

Jaco ViljoenNo Gravatar February 24, 2008 at 12:55 am

NSR

I have recently started an estate agency.
I am also working on a system of how to guarantee or at least give my agents the best chance of achieving success.

As I mentioned above.
I send out a newsletter to my farming area.
I have been doing it for 5 weeks and received more than 10 listings and 3 sales.

Good luck

JenniferNo Gravatar August 27, 2008 at 7:03 am

@ Jaco – its now been 6 months since you made your post of your marketing efforts. Has it worked for you?

Jaco ViljoenNo Gravatar August 27, 2008 at 8:07 am

The market has slowed down tremendously.
and our winter is coming to an end.

I am still signing deals and getting queries.

I do not use any media other than my pamflets, newsletters, my blog and website to get leads.

Many agencies have closed down in the last few months.
Everyone is downscaling.

The market is really tough now. If you can last you will flourish when it turns.

You need to get the message to your buyers that now is the time to buy. This is the truth.

See my post on this topic:

http://jkproperties.ilocals.info/2008/08/09/the-time-to-buy-is-now-why-has-the-market-slowed-down-so-much/

Best of luck.

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