According the National Association of REALTORS, real estate agents and brokers spent a median of $590 on marketing and $640 on business promotion in 2012. This breaks down to a median total of 20% of their budgets. As a real estate professional, marketing and promotion is essential to your business. And while traditional promotion has its place, relational promotion is where you should spend most of your time and money, especially if you work by referral. The reason is simple: People are more likely to trust a referral from someone close to them than a billboard or advertisement.
Better promotion means more leads
Leads are the lifeblood of your real estate business. More leads equals more sales and more sales means more money in your pocket. But, the best part of more leads is that they afford you the choice of who you want to work with. You’re not stuck working with a horrible client because you need the money.
To get leads, it’s vital to promote yourself and your business. Many agents go the traditional route and spend the majority of their time and money on signs, billboards, advertisements, etc., and while there’s nothing wrong with these mediums, using these as the focus of your promotional strategy won’t give you the reliable stream of leads that you want.
The same is true for digital promotion on Facebook, LinkedIn, Twitter, blogs, etc. While this type of promotion is great as part of a larger overall strategy, it shouldn’t be the only way to drive leads to your business.
What is a source of reliable leads for your business? Relational promotion. The root of relational marketing is this: We all like working with people we know, trust and are comfortable with. Similarly, when we work with someone who was referred to us by a friend or family member, we often feel comfortable with them right away. After all, if a friend raved about them and their services, we expect to be treated great as well. Relational promotion entails phone calls, personal notes, monthly marketing flyers and eReports and Pop-Bys–basically everything that is part of your real estate marketing kit from Referral Maker Pro. You’re building relationships with your clients so that you remain at the top of their minds. That way, when a friend or family member mentions they’re looking for a home or are interested in selling their home, your client can say, “Hey, you should use my agent. She’ll really take care of you.”
The magic number
Ideally, you should dedicate 70% of your time and money to relational promotion. Building relationships takes time. By doing your proactive lead generating activities every day, you lay the groundwork to a great relationship and subsequent referrals. Conventional promotion should take up 20% of your budget. It’s smart to place ads in the local paper or put up signs. It often adds to your legitimacy in the community. Digital promotion should only take up 10% of your time and budget. It’s easy to get trapped in the web of social media, but don’t spend all of your time there. While it’s important to have a presence, you don’t want to spend all of your productive time there. Set a timer and dedicate a short amount of time to updating your social media and blog each day.
Brian Buffini’s Referral Maker™ real estate CRM software helps you keep track of all of your relational promotional activities. In addition to outlining your daily proactive lead generating activities, Referral Maker manages your communication with your clients. Visit Referral Maker for more information and to start your 30-day free trial.