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Foray into the world of real estate agents

by Robert Domino
3 replies
Preface: I started a real estate investment company a few months back. To help with property acquisition (and for future marketing opportunities to agents) I did the real estate exam and have been looking into brokers. I have met a lot of agents in the past few months.

Problem: Several people on WF have mentioned how the real estate niche is pretty bad because agents are cheap, poor, get 1000 calls a week, are unreliable, are hard to reach without networking etc. The consensus seems to be that it is a fairly weak niche.

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Here's what I've observed:

Real estate agents and brokers are actual very big purchasers of products and services related to marketing. But they know VERY little about marketing, so they need a lot of hand holding.

They are fairly smart people coming from a lot of backgrounds - teachers, programmers, financial planners etc. But they are used to being employees, not independent contractors. When they suddenly have to do everything by themselves, they do not realize that, as I always say "they are a marketing business where the product is..." buying and selling real estate. They have to be taught marketing from the ground up.

I was invited to a class with 10 agents where they were told to have a database of contacts and market to them.. and that was a big revelation to them.

They are also not typically technologically savvy. They get 100s of cold calls from newbs trying to sell them SEO and a bunch of other junk.. that they don't know how to use in the first place.

If I call you and ask you $250/mo for something you don't understand, what are the odds that you'll pay up?

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After this experience, I realize that the BEST way to market to this niche, which I strongly believe will be very lucrative, is through education.

Whether it's through group presentations like Claude does, or Frank Kern style webinars, or direct mail etc. You really need to bring them from point A to point B before they will shell out money to get to point C. I have noticed that they cling to the tools that they are being taught.
#agents #estate #foray #real #world
  • Profile picture of the author Khemosabi
    Robert! Your post is spot on!

    What most people (buyers and sellers) don't understand, is their Realtor/Broker know very little. I once had a Realtor try and sell us a property that, if we had bought it, the zoning would have forced us to sell one of our horses!

    When it comes to marketing, they (usually, not always), rely on what the Brokerage tells them to do. They actually pay to have their listings on MLS, and that system is flawed in so many ways.

    Most agents know nothing about the property they are trying to sell, whether it's as a buyer, or seller's agent!

    To be fair, and honest, it is NOT their fault. They are "pushed" to sell, sell, sell!!! I'm not sure how they even handle their daily routines! You drive around from one end of an area to the other, all day, ... well, you get the picture.

    One thing that marketers need to understand is they get calls from demanding clients all day! The very last thing they want to hear is someone selling them something! HOWEVER, they will listen to you, especially if you're not a drone!

    They are hard working people, they do need our help, they want our help, and they know how important advertising is! And Robert, as you stated, they just don't know how!

    Bottom line, make their lives easier! Don't be another decision they have to make, or time out of their day... just be an easy and profitable solution!

    Robert, your post was great! Don't be a "cold caller!"... Be the call that saved their day! <--- That right there, is some of my best sleep deprived logic!

    ~ Theresa
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  • Profile picture of the author thomasmps
    Ok here you go market leader which is a $350 million dollar company was recently bought by Trulia. The reason I mentioned this company is because all they do is lead generation products for real estate agents. The avg agents spend about 400 to 500 per month for a AREA!!!!!!!!!!!!

    So yes real estate agents are spending money on online services..by the way all services are sold via phone by someone who has less experience then most on this forum.. I know this info for a fact just don't ask how.

    Ps

    The avg rep on the phone there makes 74k and there about 20 to 30 make 130k plus selling stuff we talk about all day long..it's a fact trust me on this.
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    • Profile picture of the author Khemosabi
      Originally Posted by thomasmps View Post

      Ok here you go market leader which is a $350 million dollar company was recently bought by Trulia. The reason I mentioned this company is because all they do is lead generation products for real estate agents. The avg agents spend about 400 to 500 per month for a AREA!!!!!!!!!!!!

      So yes real estate agents are spending money on online services..by the way all services are sold via phone by someone who has less experience then most on this forum.. I know this info for a fact just don't ask how.

      Ps

      The avg rep on the phone there makes 74k and there about 20 to 30 make 130k plus selling stuff we talk about all day long..it's a fact trust me on this.
      Well that just proved my point even further! Sites like Zillow and Trulia are sooooo flawed! I can get 3 different "Zestimates" on my property on any given day!

      The agents are spending money, but in all the wrong places!

      ~ Theresa
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