by Brian Brady
Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL
I am a regular contributor to the Active Rain Real Estate Network. I was perusing the posts on Active Rain the other day when one jumped out at me with the title
FREE REAL ESTATE LEADS
This is an advertisement, but important that you read:Real Estate Agent Directory
The most beneficial feature of this directory is that all leads generated in your area will be forwarded to you in real-time at no cost -ever. You can add a link to your website in the directory (more search engine exposure) and receive the leads that way as well.
*A FREE directory listing for 3 months (and only $9.00 per month thereafter-you may cancel at anytime)
*FREE LEADS from buyers and sellers (This will never change/completely free leads)
*No further commitments listed by county
This drew some fire from the good people at Active Rain. The real estate agents didn’t like the idea of a lead aggregator advertising their wares on the network. A few of us pointed out that advertising was permitted by the network and that many of the critical comments were coming from serial advertisers on Active Rain. Nonetheless, the lead aggregator was criticized for deceptive advertising and everyone poked holes in her business model.
Everyone knows that lead aggregators are the scourge of the industry; why do I defend them?
I thought back to my Principles of Promotion class from business school and I remembered the importance of having a mix in your promotional efforts. The appeal to a mortgage originator is that he might capture potential homebuyers before they contact a real estate agent; it allows him to control his destiny. There are many ways for a mortgage originator to promote his business: direct mail, telemarketing, hosting a web log, search engine optimization, seminars, co-hosting open houses, and even the old method of buying donuts for the real estate office and handing out rate sheets.
I started thinking that I might be falling victim to the old “ivory tower syndrome” that success sometimes breeds. I’ve had good results with writing articles for Active Rain. Myspace, and Bloodhound. It has generated 20-30 loan inquiries each month which result in 5-8 closed transactions. And it can all go away in 30 days if someone builds a better mousetrap.
Carefully consider your promotional mix. Are you dedicated to classified newspaper advertisements? Are you a disciple of blogging for leads? Do you buy leads from aggregators? Do you advertise in the free magazines ? radio, television? Most importantly, are you tracking the inquiry to see which one of your promotional efforts is giving you the best return on your investment?
Sometimes we forget that the simplest ideas may produce amazing results. Most times, stupid ideas are just…well..stoopid. I invite you to share this brilliant (or stoopid) journey with me over the next 90 days. It cost me ten bucks for my 90-day trial period. I have a dedicated e-mail address to track this campaign and I always inquire how telephone callers heard about me. I’ll report back every 2-3 weeks about the campaign and ask for your comments. I hope it causes you to review your promotional efforts and determine if your hard earned commission dollars are getting the ROI your desire.
Jeff Brown says:
Sorry for apparently being so dense Brian, but what’s the big deal here? Why are some of our fellow ActiveRainers so up in arms?
They must be perceiving some sort of threat. I can’t figure out what it could be. Please help me out here.
April 1, 2007 — 6:43 pm
Kevin Boer says:
You write on MySpace as well? Tell us more, I’m intrigued.
April 1, 2007 — 6:53 pm
Brian Brady says:
Jeff:
I think there are two reasons for the backlash:
a- Many people got burnt by lead aggregators (exclusive leads really weren’t exclusive).
b- I think a lot of people think that blogging is the magic pill to all of their worries so don’t want to admit that anything but it works.
Kevin:
An intro to myspace:
http://activerain.com/blogsview/64188/MySpace-Mortgage-is-Finally
I’m thinking of a post about how to garner success there. It’s such a massive marketplace that is morphing to mirror real life that it can’t be ignored.
April 1, 2007 — 7:11 pm
Jeff Brown says:
>Many people got burnt by lead aggregators (exclusive leads really weren’t exclusive).
Gee – then don’t participate. Each year I become more convinced that for some people whining is like vitamins. 🙂
I go back to what I said on Greg’s post about his new agent. These guys in real estate who insist on doing absolutely ANYTHING but actually going out and getting their own business are upset that there ISN’T a magic pill. Eliminate them and the 10-20% of us who actually earn our business can do just that – without having to listen to them whine in the background. 🙂
April 1, 2007 — 7:27 pm
Greg Swann says:
> I go back to what I said on Greg’s post about his new agent.
Not my agent, BTW. The question came from a broker in California. In Arizona, a brokerage of 1 or 2 agents doesn’t have to have a Policies and Procedures manual. Add a third licensee and you’re screwed. We can stand to defer that thrill.
April 1, 2007 — 7:39 pm
Jeff Brown says:
As Watkins used to say to Holmes, “No s___ Sherlock.”
April 1, 2007 — 7:46 pm
Mike Thoman says:
Brian,
I took a peak at the active rain post. I think you have to admit that the delivery/execution was poor, which is at least partly to blame for the reaction it garnered. She/they ‘spammed’ the active rain groups and claimed ‘free’ when it was actually $10 to sign up. No big deal, $10, but free should be free.
I think you offered good advice there (‘beta testers’), and here, though, and I commend you for putting your money where your mouth is. I hope you at least get a lead from it…
I find it interesting that MySpace could produce leads for a category such as mortgages.
Mike
April 2, 2007 — 8:20 am
Brian Brady says:
Mike,
Her delivery was poor. My ten bucks investment may have been the price of an interesting topic to write about. I saw it as an opportunity to discuss the promotional mix.
I’d also like to see it work.
April 2, 2007 — 10:29 am