RECR's Blog: March 2009

The world needs another blog about how important it is for agents to build and maintain a positive social media presence like Eskimos need ice. 

But, I'm a big fan of technology.  I figure anything that is out there that can help me do my job better, more efficiently, and with less effort on my behalf has to be a good thing.  Plus, I'm a numbers junkie.  Numbers and statistics to me are undeniable proof that certain truths exist. 

And, I guess I'm not the only one that feels that way.

The 2008 Use of Technology Survey tracks the current trends in technology.  The survey is conducted in the 3^rd quarter annually and is sponsored by the California Association of Realtors.  For the purpose of the survey, agents are asked about everything from computers to phone and internet usage. 

Some of the statistics that I read don't really surprise me.  For example, according to the survey, 93% of Realtors use email, 90% use the internet to check online listings, 89% use the net to check the local MLS, 59% use it to access brokerage websites, and 55% of users access the WINForms electronic forms online.  But, aside from those, here is a stack of statistics that I read that stood out....

• On average, 48% of a Realtor's business originated on the internet in 2008!  That is up from 44% last year.  This is expected to increase to as high as 60% in the next 3 years!  (If you ever needed a reason to start working in social media and getting your name out there for clients to see...Here it is!)
• On average, 33% of agents use a laptop or tablet computer in the field.  Again, that is up from 27% from last year further proving that agents are taking advantage of the technological advances to help in both presentations and closings.  70% of those that use a laptop in the field use it for listing presentations.  That alone is up from 2007 by roughly 13%.
• As a sign of the struggling economic issues associated with housing currently, only 13% of agents bought a new computer in 2008.  That is down from 20% the year before.  (This does not surprise me in the least...everyone has had to cinch the belt down a bit...)
• 58% say that keeping up with emails is the greatest technological challenge.  (I spend probably 3 hours of my day just responding to or generating emails.  So, I would have to agree with this.)
• 11% say that they send their clients an electronic newsletter via email.  (I'm surprised that this is as low as it is...maybe that is because I work for an internet company and literally everything we do is online.  Maybe I'm desensitized...)
• 45% honestly believe that the technology that they use gives them a competitive advantage over other agents in the field.  (That would explain increase in people using it.  If you weren't using it before and were getting clobbered in the field, you would want to use it now.  Makes perfect sense...)
• And, the kicker ---- ONLY 7% of agents that responded to the survey say that they participate in an online group/forum or post blogs!!  (Are you kidding me??  I don't know why I'm surprised at this statistic...but only 7%??  That means I'm ahead of the curve by 93%!!)

Now, I don't know about you, but some of these statistics are just incredible to me. 

But, even more incredible to me are the statistics that were quoted in the 2009 Social Media Marketing & PR Benchmark Guide published by the Marketing Sherpa.  This marketing survey is taken annually to measure the power of social media with reference to companies big and small across the country and globally.

• 76% of the companies surveyed agree that social media is dramatically changing the way that companies communicate with potential and existing customers.  (The practice of marketing and communicating with customers isn't dead...but, it is changing!)
• 48% of companies that were surveyed all plan on INCREASING budgets with regard to online marketing and social media. 
• By the same token, the same businesses in this survey are all planning a decrease in spending in "traditional" forms of marketing
  • 22% are decreasing spending on telemarketing
  • 52% are decreasing on direct mailings
  • 57% are decreasing on events such as trade shows
  • 60% are spending less money on print media
  • 83% are decreasing spending on radio or TV ads

And, the most impressive statistics of all...

• 94% of the companies agreed that social media can directly influence the reputation of a company's brand in the eyes of it's potential customers.
• 91% agreed that it is effective in ensuring brand awareness.
• 87% agreed that social media has improved their specific search engine rankings and can increase website traffic.
• When asked what factors were stopping companies from setting up a social media presence, 46% of the companies surveyed claim that there isn't enough knowledgeable staff in place to help support the effort.  (Considering the massive number of consultants and "social media gurus" that are out there, I find this number to be a bit off...But, hey, what do I know?)

Now, having said all of that...I fully realize that writing a blog about how important social media is in this market is a lot like giving a firearms demonstration to the NRA...somewhat futile since 99% of the people that will see it believe in it already. 

But, as far as I'm concerned, these statistics are convincing enough to make anyone with any form of connective brain tissue realize that having a social media presence isn't optional any longer.  It's needed.  Not only is it needed, it's mandatory if you plan on keeping up with those around you. 

So, start blogging.  Join social networking sites like Facebook, LinkedIn, ActiveRain, and Twitter.  Get your name and your face out there as much as humanly possible. 

Times change; markets change.  And, with those changes, adaptations must be made by those that intend to survive.  In this internet-ruled world, social media is now king.  You can either adapt to that change...or be overcome by those that do -- Your choice.

If you would like information on www.recr.com, please feel free to contact Clint Miller at 800-977-7058.  Or, follow me on Twitter on www.twitter.com/recr.

I have never made any secret of the fact that I work for an internet lead generation company.  And, having been at this company for nearly 5 years, I do believe that, when worked properly, internet leads can and will make you money.  But, as with anything in life, there is no "magic pill" that will allow you to automatically be successful.  This remains true for anything in life, but is especially true when discussing real estate...more specifically, internet-generated leads.

Really, what it boils down to is this: If you suck at follow up...internet leads are not for you.  (By the way, did you know that an internet-generated lead degenerates by 50% every single day that it sits without an initial contact?  How fast do you follow up with your internet leads?  Three days?  That lead is now worth 12.5% of what it was when it first came in!  One day?  50%.  Bottom line, if your answer includes the word ‘day', it is not fast enough!  In fact, if you can not respond within the first 12 hours, you probably failed.) 

I've written previously about agents that are admittedly too lazy to work the clients they already have...and about how working your leads can lead to great things. 

But nothing has driven this point home more for me than the story of Barbara Ripple.  Barbara works for Real Estate Brokers in and around Winston-Salem, NC, and is quite possibly the most tenacious agent I have ever met.  Her tenacity and her exemplary follow-up skills have set her up for an agreement that is every agent's dream. 

Here is her story in her own words:

When I first received a call from Real Estate Client Referrals, my thoughts were, "Why not take a gamble?"  So, I did.

Several referrals were sent my way and, when I would call them, my thoughts were, "This is a joke".  One client couldn't afford to buy clothing, much less a house.  One had a recent foreclosure.  But, as they came across my desk, I would keep calling and asking questions to make sure that they were indeed a valid buyer that could get qualified for a home loan.  Those that were obviously bogus I would return for replacement - something that Real Estate Client Referrals was more than willing to do.

I called on one referral for a young lady wanting to buy a home.  When I called, her father answered the phone and chewed me out. "My daughter is NOT buying a house! She is going to college to be an attorney!  Don't you EVER call back!"

Once the screaming subsided, "Yes sir!" I replied and I politely asked him to have her call me back when she had time to explain as to why she would say she was looking to buy a home on a website when it wasn't the truth.  I figured it was worth a shot just in case.  He agreed to pass along my number.

About a week went by before Alisha called me back to apologize for her father's attitude and explained the ‘misunderstanding'.  It turns out her boss was the one looking for the home.  She just put in her information as a contact.  I asked if she would mind if I contact him directly.  She had no problem with this and gave me his phone number and I proceeded to start contact with him.

It took me roughly a week or more to get hold of Alisha's boss.  But, once I was able to establish contact, Alisha's boss explained that he was indeed looking for a list of property for a "relative" of his and wasn't sure he would need an agent...just a list of available property.  He runs a local general contracting and construction company and wasn't certain if he would be doing this sooner versus later...the usual ‘blow off'.  I agreed I would provide him with one with the agreement that, should he require the services of an agent, he contact me first. 

The next day, I was reading the local newspaper and there was an article about Alisha's boss being involved in a rehabilitation project with the city and he had a $3million grant to rehab homes that would be sold to HUD qualified buyers directly by the city. 

I immediately contacted him again and said I saw the article, congratulated him on his success, and again offered my services to help him find a house.  During this call, I thought it was important for me to let him know that I had a suspicion that he wasn't looking to buy for a relative, but was interested in property for his rehab project.  He complimented me for my tenacity and we set up an appointment with him at his office an hour away from mine.  I said I'd be interested in working with him to find these homes for his rehab project and he agreed we would be talking about that at the appointment.

The next day, I met with him at his office to discuss this opportunity.  At that meeting was the Mayor of the city he was doing this project in - And I walked out of this meeting with an exclusive buyer agency agreement with him and the city for 25 developed properties and 10 vacant lots!!!  I will be getting a commission on the purchase of these properties from the city!!!  And, when the properties are rehabbed, I will be the exclusive agent for listing and selling these properties!! 

I want to thank you all for listening when I would call complaining about one thing or another.  I appreciate your professionalism in dealing with me.  And, now I want to thank you for another reason!!  This situation has literally changed my life!  I never would have discovered this amazing opportunity were it not for that "bogus" referral from Real Estate Client Referrals!!  Thank you so much!!

To Barbara, I would like to say, "Congratulations!"  Thanks to your ability to delve a little deeper into this matter, you are being rewarded!  (Referrals are not often what is written down on the piece of paper handed to you or the email delivered to your inbox.  Sometimes, the real meat of the issue has to be discovered with just a little perseverance and some good old fashioned hard work.)  It is your willingness to go the extra mile with this initial contact that has set yourself up for such a successful endeavor.   Nice work!  You earned it!

To those that are reading this post, I would like to say: How many of you would have given up after that first phone call?  How easy would it have been to hang up the phone angry over the situation, blaming the lead source for delivering such a bogus lead - perhaps even blogging about "how bad lead generation companies really are" - and admit defeat because you received a ‘NO' from a potential lead??  How simple it would be to just delete that email, throw away the contact info, and completely walk away from the situation without further investigation?

And, if you had done just that...how big of a mistake would that have been??? 

Every referral - every lead - deserves to be worked.  Work your leads!  Great things happen when you do! 

If I can help you with any questions you might have about receiving internet leads from Real Estate Client Referrals, please do not hesitate to contact me.  You can reach me at 800-977-7058, or follow me on Twitter. 

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