Marketing Methods in Real Estate
September 12, 2018
September 12, 2018
As a realtor, your income is mainly dependent on the commissions you earn from the real estate deals that you successfully close. To close deals, you need clients who have chosen to bring their business with you. But before you get clients, you need to approach several prospects first and convince them that you’re the real estate agent they’re looking for. Ideally, you’ll want your every approach you make to be converted to a guaranteed sale. In reality, however, the one-to-one ratio of approach to sale is a bit difficult to achieve. But at the very least, one of your goals to help your business grow should be to minimize the mount of prospecting you need to do and to do it as cost-effectively as possible.
Your best shot at realizing this object is by learning more about the art of approaching potential prospects and improve your prospecting and marketing activities. Each type of marketing and prospecting will generate different results in the number of approaches you reach, and it’s important that you identify each marketing method you use and track their results. That way you can determine which are the most effective in reaching the prospects you want.
Two Main Types of Marketing and Prospecting in Real Estate
In real estate, there are two (2) methods of marketing that you’ll do: active marketing and passive marketing.
- Active Marketing is a type of marketing in which you, the agent, is responsible for actually initiating contact with the prospective client. Therefore, this is usually so much more time-consuming compared to passive marketing, but when done right, it is effective in generating leads.
- Passive Marketing is a type of marketing in which the agent has little control over directly contacting prospects. This is usually a form of paid advertising, where you utilize different avenues to promote yourself, introduce your services, and continually remind the people in the area that you are a realtor who is ready and willing to help them. The goal of this marketing method is to get the prospect to initiate direct contact with the agent and not the other way around. Expect that some subtypes of passive marketing will be successful in generating the prospects that you want, and others won’t.
Subtypes of Active Marketing Methods
Below are a few examples of active marketing. You may use a real estate management program like Datz RMS to track the performance of each one to help you accurately identify which ones work best for you.
- Door Knocking. A lot of agents like to knock on doors when prospecting. In fact, the most successful agents out there at one point in time went door-to-door trying to sell their services. Some of them still are to this day. They’ve mastered what they say when they knock on the door, and they’ve managed to do it through trial and error, trying different scripts when someone opens the door. Then, they simply repeat the scripts that they’ve seen great results from when they approach other prospects using this method.
- Cold Calling. This is a very lucrative method of active marketing because you can make a lot of calls to people who may want to buy or sell in a short period. It’s low cost, and you’re spending less time to generate the contacts you need to hit your targets. However, unlike in door knocking, you don’t have as much of an opportunity to add a personal touch to promoting your services since you’re not speaking to your prospects face to face.
There are a lot of very successful agents that still cold call every single day. They know exactly how many calls they need to make on a daily basis to generate the number of contacts they
- Contacting Current and Past Clients for Referrals. It’s very important that you foster a positive relationship with your current and past clients during and after you’ve completed your transactions with them. If they like your performance, chances are they’re going to seek you out again the next time they buy or sell a property. They may also refer you to prospective clients who are looking for a realtor they can count on, and since your previous clients have already out in a good word for you, you have better chances of closing them as new clients.
Other examples of active marketing methods include calling for sale by owners (FSBO) for listings, attending tradeshows, and manning mall kiosks.
Subtypes of Passive Marketing Methods
Some examples of passive marketing you might try could be:
- Newspaper Ads. Running ads in newspapers is fairly common in real estate. It may be costly and doesn’t typically generate a lot of leads, but it is a great way to remind people of your name and your business. Posting listings in the newspaper also keep clients happy because it would mean that you are covering all your bases.
- Facebook and Social Media. Agents are realizing more and more the opportunities that Facebook and other social media outlets provide in promoting their real estate businesses. The reach is incredibly large, and the cost is relatively low. Of course, it will still be up to the prospect to initiate contact with you, but if you try different tactics on the ads that you run and track their results, you’ll be able to identify which of them consistently generate the most leads with the least amount of money spent.
- Advertisement Signs. These are a great way to get the approaches you want since it will be the buyer who calls you to ask for more information about one of your listings. They’re already interested and are the ones asking the questions. All you have to do is to convert them to a contact.
Both types of marketing (active and passive) are important in running a real estate business. The challenge is in determining which methods of both types of marketing are the most effective for you, and strategically deciding how much time, energy, and money you should be investing in each one. Figuring out the perfect mix of marketing tools for your business will ultimately generate the number of contacts you need to reach and exceed your targets.