Housevalues.com Invades Activerain.com: Guerilla Warfare Needed

by Brian Brady

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Housevalues.com invested close to $3 million in Activerain.com. I chuckled about the irony of a lead company paying for leads, yesterday. I also reported that the Active Rain community was politely swallowing this shocking news. You see, for 18 months, the little purple pill has always been, “If you blog it, they will come” (‘they’ meaning customers).

Jon Washburn’s community press release generated comments like this one, posted by Ann Cummings:

Congratulations on the funding. Like others, I’m no fan at all of any lead generation companies. And I’m glad to read Mike Nelson’s comment above about this not being that kind of opportunity for them nor an advertising opportunity for them. That was a concern of mine when I saw this announcement over on BloodHound earlier. Thanks for the clarification, Mike.

I hope this funding allows you to bring all kinds of great positive things to AR and Localism – that would be terrific indeed!!

Ann

No surprise there. Ann’s a nice lady and adopted the cautiously optimistic attitude I would expect from her. She’s hoping for the best but ready for the worst (if it happens).

Later, demons were exorcised by some (understandably) jaded members who felt that Housevalues “took” their money by promising a product that failed to deliver. On cue, the Housevalues advocates expressed their opinions. Greg Nino from Houston said:

House Values or any other lead generation company is the current future. In case anyone needs to be reminded, the Internet is where prospects turn into dollars and sense. A lead that comes from your computer or how it gets in you contact management system is a mute point. What does matter is that House Values has been instrumental in launching careers for some and sadly not able to spoil others.

I have concern for anyone outside my market who claims Internet leads are either a waste of time or a waste of money. Effort being left out because that is what usually is for the typical naysayer. If your in my market carry on with your thoughts. I would be happy to buy your subscription.

I’ve been with House Values since January of 2006. Simply said, I’ve received over 2,000 leads that have given birth to my business, future and lifestyle. I have picked up over 80 transactions and $300,000 in total commissions. I average 3.5 listings a month and expect no slow down in sight. I have also enjoyed countless opportunities to grow, learn and develop as a practitioner in my market. I can also thank House Values for helping me be the Top Listing agent for 15 months in a row in my office.

I am very excited and glad they are financially involved with Active Rain.

Greg, Congratulations on your success! I wonder, however, if you would have received a similar ROI had you invested your money into a contact management system, systematic marketing, and farming your marketplace. If you’re a newer agent, I commend you for a creative way to build up your database off of an internet marketing portal.

Then, Maggie Mouscardy from Long Beach:

I have been a HouseValues/Just Listed subscriber since February 2005 and will soon have 36 solid months of business generated because of the leads and system I’ve used from HouseValues. The HouseValues system has been the cornerstone of my real estate business CONSISTENTLY for these past 3 years.

With the Internet being the first place consumers go for information about real estate, in fact over 90% do so according to NAR (National Asssociation of REALTORS) statistics. I have done the math and overall for every $1 I’ve invested, my ROI on HouseValues has been $8.50, pretty good return if you ask me!

I was able to build an eTeam with 45 agents and even in a declining market we were able to close over $250,000 in GCI (Gross Closed Commissions) in just 4 months in 2007!!! The system works. Those who boo whoo any system, flat out didn’t understand that the Internet consumer takes time to incubate and nurture. That’s why I’ve stayed and will continue to build and grow my SUCCESSFUL real estate career with HouseValues! How long have I been in the real estate industry, since October 1987! Go ahead and look me up if you’re anywhere near Long Beach, California…I’ll treat you to lunch and we’ll talk about HouseValues and their ROCK SOLID and unbeatable system that helps me and my team everyday!

Maggie, I wonder how the Housevalues system benefited your team. When I divide $250,000 GCI by 45 e-agents, I come up with $5500/agent, over a four month period.

Here’s my point, folks. We have the same problem that Bank of America and Countrywide will have; CULTURE CLASH. The Housevalues’ agents follow a much different discipline than the Active Rain agents. HV agents pay for leads and AR agents develop leads through their own efforts. Both disciplines work… well… for now.

The problem for the Active Rain members? Now, you’ll be listening to a sales pitch from the stealth evangelizers of the Housevalues discipline. If the first day was any indication, they’ll be joining Active Rain in droves and posting their testimonials. You’re going to hear a confusing message these next few months.

No worries. We, at Bloodhound, know you’re initial thought was correct; if you blog it, they will come. Of course, we try to be a little more disciplined in our approach to social media marketing, so much, that we’re having a little educational weekend, in May, dedicated to that very concept.

We approach our efforts like guerrilla warriors, using our competition’s strength against them. We pee on trees, establish community expertise, try to dominate a hyperlocal market, and find interesting ways to broadcast our message with new media. We recognize that the internet is a big enough place for you to carve out a profitable niche before the big guys find out how to do it.

You CAN create raving fans, so in love with you, that they wouldn’t even THINK about letting their friends use anyone else but you.

I love the Active Rain community. I made my bones over there... but I learned how to make it work, right here. So, if the “pay for leads” evangelizers distract you from your ultimate goals, check out what we’re doing.

PS: It’ll be OUR little secret. (and you won’t have to delete your AR profile)