There’s always something to howl about.

Category: Marketing (page 128 of 191)

On the NORDSTROM Analogy

Apropos of pretty much nothing: my two daughters — for whom I live — drove down from Seattle last weekend and threw me a surprise birthday party. The appropriate aphorism: “A good time was had by all.” I just found two party hats in the freezer.

Which provides a seriously imperfect segue into: Nordstrom. Since the time I spent there informs nearly everything I’ve done in business the last thirty years; because what we do as full service agents has been rightfully compared to the Nordstrom model; and because I’ll reference them often, it might be worthwhile to give some background:

I was there when they were just breaking into the California market, before the Department of Labor made them shut down any employee off clock hours — which means a concerned Nordy personally delivering a prom dress to a hormonally anxious deb is considered illegal — and before any organized gangs began using their return policy as a profit center. The employee manual read in its entirety “Use your own best judgment at all times”, twenty five year old buyers were given multi-million dollar budgets with the single instruction “Buy what the customer wants…”, and every employee was given the imprimatur to say only one thing: “Yes.”

In the early seventies one billboard on I-5 leading out of Seattle read “Will the last person leaving please turn out the lights?”, but leading in to the city was another billboard that read simply “We understand there’s a recession. We’ve elected not to participate.” and signed Bruce Nordstrom. When the same Bruce Nordstrom — “Mr. Bruce” in the vernacular — was asked in a meeting why it was necessary to give money back to people who didn’t seem to deserve it, after an eternal icy silence he said: “That’s my money. You’ll give it back until I tell you differently.”

Everyone has probably heard the (true) anecdote of the radial tires returned for a full refund at the first San Francisco store. What everyone doesn’t know is that, while most department stores at the time funded their advertising at 4% of sales, we budgeted 2%. Read more

Watermark play: Ten samples for proof

Using PicMark for the Macintosh, I built a watermark that satisfies my objective: To put a proprietary mark on photos that does not destroy the beauty of the image. I also wanted to satisfy Thomas Johnson’s goal, to put a web address on each photo.

The ten examples below show the watermark I built. It’s not perfect — there is one photo where I can’t find the semi-invisible mark. But if we presume any thieves are likely to steal more than one picture, we have an excellent chance of catching them. Moreover, being so obviously marked, it’s seems at least plausible that they won’t steal our photos at all.


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Faking It

Smarmy Fluffy FakeI just wanted everyone to know that I am the “Top Blogger.” I also host the “Fastest Growing Blog” in America. I have the “Highest Reader Satisfaction On The Web,” and I was voted the “Best Wife In The World.” There, I said it.

What’s that you say? How can you disagree with my claims? I put them in print, they must be true! Alas, some of these may not be true, much like blatant imaginative statements made on Real Estate websites and business cards worldwide. Is this the stuff your marketing is made of? As most of you know, I’m not a Realtor, but I am a consumer (okay, a self-acclaimed consumer/shopping pro) who works for a Realtor firm and is hyper-exposed to Real Estate at least 70 hours a week. That said, I give you my Top 5 Offensive (and often false) Claims:

CLAIM #1- Top Realtor in The City/Nation/World
This is a personal favorite- simply Google “Top [insert your city here] Realtor” and the results are endless. How is it possible that hundreds of people are ALSO the “Top Realtor” in your city? This claim is frequently used because it is subjective, but when everyone claims this ranking, it falls on deaf ears! So, what does your claim mean? Are you the top highest producing, the top recruiting broker in the city, or do you claim the top closing ratio? All of us here know that fluff is abundant on websites and canned material still rules the day, but if you have to fake itit ain’t that good.

CLAIM #2- Your Neighborhood Specialist
There are many specialists out there, and several Realtors can specialize in the same subdivision, but don’t close your eyes, point at a map and pick a spot to farm, thus claiming your “specialty.” That would be like ME saying that I am THE Scripps Ranch, CA specialist (yet I’ve never been there and besides, the Bergs have it on lockdown). I got a flyer on the door the other day. This Realtor claimed to be my neighborhood’s specialist and “Top Realtor.” Strange- I have never seen a Read more

The Way of the Rain Dogs: Peeing on your pictures to mark your Zestifarm — and to avoid becoming an unpuppy

This is from mail from Thomas Johnson of ERA Houston, which, among other things, coins the terms “Zestifarm” and “Zestifarming” for the various ways one can pee on the tree in Zillow:

I love the marking your farm analogy. I walk my dog, Sophie, every evening and I have noticed that she marks everything that is of higher than average height: a clump of grass, a twig, a lump of Spanish moss, whatever. I liken that to canine text messaging a quick sniff, squirt and move on. When we get to the mailboxes, it is different. That is much more interesting. There is lots of sniffing and squirting. I guess we could call that pee mail. My takeaway is that there are so many little repetitions that we can use to mark our Zestifarms. And, the price is right.

Less like pee mail, more like Twitter. Even so, I just quoted that part to make the girls squeal. But: Nothing focuses the mind like an apposite metaphor. One theory says that dogs mark their territory so they can find their way home if they get lost. Hence the poor, lost Rain Dogs.

Dog owners know better: Dogs mark to cover the scent left by other dogs. To have your pee peed on is to become an unpuppy:

I spent the night tossing and turning thinking about “marking my farm”. I think that an agent could take over the cyber neighborhood before the entrenched legacy agent/broker even knew what was happening. A while ago, I bought a cheap little program called “watermark it”. It enables you to digitally watermark photos. I bought it to protect my MLS photos, but it was banned by policy. My 4 AM revelation was to watermark my Zestifarm photos with a small web address. It would not hyperlink, but “Kilroy was here”.

This is something that I’ve been thinking about, but I hadn’t done anything about it until I got this mail. As I mentioned before, there is an even better “pee on the tree strategy” than listing homes for sale:

Instead of announcing homes for sale, walk the neighborhoods you farm, taking Read more

If lenders divorce the commissions, they’ll be divorced

Jim Duncan issues a battle cry for divorced commissions:

As a profession, we need to rid ourselves of Cooperative Compensation and the practice of the listing broker paying the Buyer’s Agent.

Cooperation between Brokers need not go away. In fact, without cooperative compensation, the practice of real estate representation will be enhanced, as the perceived collusion between Realtors will be mitigated significantly. What needs to disappear is the inherent conflict of interest that comes from the Listing Broker paying the Buyer’s Agent.

Jim argues for legislative changes, but my thinking is that lenders could effect this change overnight, without new laws.

How?

By refusing to honor the terms of the Listing Agreement.

If mortage underwriters disallow any commission over 3% or 3.5% from the seller, with all of that going to the Listing Broker, while simultaneously allowing a commission of up to 3% or 3.5% from the buyer, with all of that going to the Buyer’s Broker — what will happen? The brokers will immediately rewrite their employment agreements. We are always changing language to get it past the underwriter — and the smart ones among us write the language their way from then on.

The simple fact is, except for all-cash sales, we’re going to do what the lender tells us to do. No loan, no transaction. If lenders decide to divorce the commissions, they’re going to be divorced.

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Shuffling the pack: Two new Bloodhounds on the trail

We’re adding two new contributors today:

Lani Anglin is the Texas-proud provocateuse at the spunky Realtor Wives weblog. By day, she works as a rainmaker for Single Pointe Realty. With two kids, three cats, a dog and her husband, she finds a way to stay busy.

Jeff Kempe knows a thing or two about Nordstrom service, having sold for them and to them for many years. Jeff has been selling real estate in Lake Oswego, Oregon, a suburb of Portland, for the last three years.

Norma Newgent hasn’t had the time to give to BloodhoundBlog lately, so I’ve moved her off of the main rotation for now.

We’re heavy on Realtors, and I think this is a great strength. But we are necessarily at the mercy of the vicissitudes of the real estate market. When the market turns hard, we’re going to need a tire iron to pry extra hours out of the day.

In any case, Lani and Jeff are both very interesting writers, and I know they’ll bring new insights to us. Lani’s in a tough spot, though. Lexically, she lands above Kris Berg on the list of contributors, but my bet is that no one can eclipse Kris in the weblogger’s art.

When will BloodhoundBlog stop growing? When we run out of things to howl about…

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I Still Want to Know Who Pays You, Bruce

I received the following via email and also as a comment to a post on BloodhoundBlog. It is from Bruce Hahn. Bruce claims to represent 75,000,000 people – and I think that at least 74,999,000 of those people have never even heard of him. He and his wife (along with some other unnamed person) are the American Homeowners Grassroots Alliance.

Bruce HahnBruce has a background as a lobbyist and has written several books. These days he seems to spend most of his time letting various government divisions (with loads of emphasis on the federal government) know “what is good for consumers”. He has a big heart, he just wants to help. He is quite secretive on who pays him. But he has come right out and said it is NOT Bank of America – so my guess on that is obviously wrong. I really don’t expect him to be forthcoming now – whoever does pay him doesn’t want anyone to know who they are.

Here are some links I found telling you more about this endlessly polite and highly articulate and prolific man who seems to have dedicated his life to making sure consumers aren’t taken advantage of by Realtors (or anyone else).

http://www.inmanwiki.com/Real-Estate/Bruce_Hahn

http://waysandmeans.house.gov/hearings.asp?formmode=view&id=4047

http://www.theamericanconsumer.org/Bruce.htm

http://realtytimes.com/rtapages/20070221_grassroots.htm

http://justice.gov/atr/public/workshops/rewcom/212268.htm

http://realtytimes.com/rtapages/20041001_agencyerosion.htm

http://www.washingtontechnology.com/print/12_21/13695-1.html

http://www.usdoj.gov/atr/public/workshops/rewcom/212268a.htm

_____

Russell

Thanks for the link to our website!

If you would have read some of our recent congressional testimony on subprime lending (which is on our web site and is very critical of the banking sector), you would understand why we are not getting any funding from Bank of America or other banks. And if you had gone back in our history to see some of our past Congressional testimony against the banking sector for its legislative efforts to hamstring Freddie and Fannie, you would have no doubts at all. We are opposed to “Rotarian Socialism”, as Gregg Swann so aptly described it in his outstanding February 13 Bloodhound post. In it he wisely noted that NAR’s “on-going legislative campaign against banks competing for real estate transactions is just more of the same: “Protecting” mediocrities from fair competition.” Our aforementioned testimony opposing banking practices in the mortgage lending sector simply reflects our opposition to Read more

RE.net waist-loss challenge: Mid-term report cards

We’re about half-way through the RE.net waist-loss challenge, so it seems like a good time to pull out the scales and the tape measures. This was the plan I laid out for myself in March:

My goal: A 34-inch waist by August 1st.

My plan: A half-hour a day on the stationary bike, while reading nothing work-related. Eat half as much, twice as often — or less. Add real bicycling as the weather warms up. Add free-weights and crunches as appropriate.

No crunches at all yet (O, the pain!), but everything else proceeds apace. I got sick a little while ago, and I haven’t yet reintegrated the weights before bedtime. I finally got onto my mountain bike a couple of weeks ago. I hate anything like cold weather, so I won’t ride if the outside temperature isn’t what most people would think of as blistering. Anyway, I found out right away that the recumbent bike is a vigorous way of sitting down. By now I can do 45 very hard minutes on the bike, but I haven’t yet found myself tempted by any of the nearby mountains. Eating less and better has been no problem at all. Food has always bored me, but the weights and the bike lead me to a certain fascination with protein.

Consequences? I’m down 30 pounds from the start of the year, but that doesn’t really matter. I care a lot less about weight than about converting fat to muscle. That much seems to be working well. I’ve burned two inches off my belt, but that vast beach ball above my belt is much deflated. Riding a mountain bike is an excellent workout for every muscle from toes to glutes (plus some upper body stuff), so the biggest muscle groups in my body are getting substantially stronger. Plus which, while free weights are beyond excellent for building fat-burning muscle, working out with weights is blindingly boring, where riding the bike is always interesting.

Even so, there is a degree to which all exercise sucks. There is nothing quite as pleasant as laying down on the sofa and sinking into another fascinating Read more

Where is the epicenter of real estate weblogging?

Arizona, of course.

Want proof? Jay Thompson, The Phoenix Real Estate Guy really is the phoenix real estate guy. I’m getting him in sixth place in Google organic results for that keyword, with nowhere to go but up.

John L. Wake at Arizona Real Estate Notebook takes us through the five stages of grief for months-on-market home-sellers.

Wally Neal of Metro Phoenix Real Estate (watch out, Jay) gives Redfin a nice filleting.

Down in Tucson, Dave Smith at the Real Estate Blog Lab drops a dime on the Clean Archives plug-in, which I immediately installed. Now you can visit our new Archives page to discover just how hyper-loquacious we really are.

Finally, honorary Arizonan Brian Brady is threatening to put together another convocation of Phoenix-area real estate webloggers. Let him know by email if you want to come along.

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New real-estate licensing law fails consumers

This is me from today’s Arizona Republic (permanent link). (Nota bene: What you are seeing here is actually my own original draft text of this column.)

 
New real-estate licensing law fails consumers

My real estate license is up for renewal — just at the wrong time. Under current law, I am obliged to renew my license every two years, but under a new state law that is to take effect on July 1, 2007, I will only need to renew every four years.

The change will be convenient for me, the next time I renew. To qualify for renewal, I have to take eight three-hour continuing education classes, so my education requirement will go from twelve hours to six hours a year.

And the change will make things much easier down at the Arizona Department of Real Estate, where everyone always seems to be harried and frazzled.

But how does the consumer benefit?

The licensing requirement for real estate agents is a bad joke. Would-be licensees are required to take 90 hours of classroom instruction. There are real estate schools that will permit you to fulfill this obligation in ten consecutive days. The course material consists of tips and tricks for taking the state test, and the state test has almost nothing to do with succeeding — or even surviving — as a real estate agent.

How do we know this? Because more than 90% of new licensees do not renew their licenses. They fail within the first two years in business. Successful navigation of the licensing process is useless as an indicator of success as a real estate agent.

The state’s licensing procedure actually serves to deceive consumers. The implication is that a licensed practitioner is competent. Far too often, this is untrue.

What would work better? The free market. If competition for reputation were the only standard for judging agents, new entrants would have to get themselves hired by already-established big-name agents. Through a process akin to apprenticeship, they would learn how to work well and wisely in real estate — or they would get fired with dispatch.

And instead of depending on a useless talisman from the state, Read more

By withholding the secrets of the mystical MLS system are we betraying the home-buyer’s interests?

In all my spare time, I’ve been working over the past few days on a real estate porn movie. The film features pictures from hundreds of homes, with loads of juicy details. We took the photos over the course of years, so it’s entirely possible that some of those homes are listed for sale right now. In making the movie available to the public, will we be “advertising” those listings without the listing broker’s permission? I don’t think we will be, but I also don’t give a damn. We have a right to our work product, and we have a right to do as we choose with our work product, and I will joyfully fight for my rights down to my last dime.

Let’s be obvious, at least for a moment. An appraisal is something you contract to have done and pay a substantial fee to obtain. Any state attorney general, even Arizona State Attorney General Terry Goddard, should be able to comprehend such a simple fact. In the same way, advertising is something you pay for. Quibblers will insist that paying web site hosting fees is alike unto paying publication line rates or broadcast fees. To this “argument,” the only reasonable retort is a Bronx cheer. When a word means almost anything, it means almost nothing.

The obvious fact is that MLS rules against advertising other broker’s listings without permission are devised to prevent Broker Paul from placing paid ads representing Broker Peter’s listings as his own. In fact, the motivating premise behind the rule is that Broker Paul, even while giving a false impression about his prowess as a lister, would nevertheless be promoting the homes in a positive light.

So why would Broker Peter object to free advertising of his listings? In other words, why does this MLS rule exist in the first place?

Too obvious, isn’t it? It’s because of the double dip. If Broker Paul advertises Broker Peter’s listings as his own, then Broker Peter might lose out on some opportunities to collect commissions from both sides of his transactions.

Real estate brokers implemented Buyer Agency not because they wanted to Read more

Defending Redfin: Sweet Digs weblog buried by inane MLS rules

I don’t like Redfin.com. Its “business” model consists of quietly diverting its agency responsibilities to listing agents while loudly rebating its largely unearned commissions to buyers. My experience of the president of the company, Glenn Kelman, is that he is an oily liar who will say anything to draw the fawning attentions of a gullible mainstream media. I don’t care about discount real estate brokerages in general — let the market sort them out — but Redfin’s modus vivendi is to exploit defects in the real estate industry — that it cannot get along without — while decrying those same defects in its tendentious and mendacious PR.

However: I believe in liberty before everything. Although Redfin will never enter most real estate markets — this being forbidden by a cost-structure that loses money on even the priciest of homes — it nevertheless has a valid complaint when it draws attention to anti-rebating and minimum-service real estate laws. The National Association of Realtors is an anti-capitalist cartel, as are state and local Realtors’ associations and local MLS systems. They are liars just like Kelman, loudly proclaiming their protection of the consumer’s interests while quietly enacting every Rotarian Socialist scheme they can think up.

Today John Cook’s Venture Blog reports that Redfin is being fined and forced to shut down one of its weblogs for violating one of those schemes:

The Northwest Multiple Listing Service has fined Redfin $50,000 and asked them to stop publishing a popular blog in which contractors for the online real estate brokerage posted reviews of Seattle area homes.

Redfin is appealing the fine, though it took steps this week to shut down the reviews on its “Sweet Digs” blog. With about 3,000 e-mail and online subscribers, the blog was written by 15 freelance reviewers who over the past five months posted reviews on about 1,000 homes in Seattle and San Francisco. The company says it plans to maintain the blog as a source of information on pricing trends and recently sold homes.

Redfin Chief Executive Glenn Kelman said he had no choice but to comply, noting that the NWMLS had threatened to Read more

Two simple steps that can save you hundreds or even thousands of dollars on Craig Proctor’s lead generation systems

Russell posted a note about a forthcoming Tom Ferry seminar. It would seem to be the seminar season, so I signed up for that one and two others, purely for the thrill of the chase: Identify the scam, marvel at the upsells, listen for the fall-back sale, all that cheesy crap.

Today was the Craig Proctor seminar. I’ve been getting spam from this guy for years, so I was interested to see what the pitch was. Craig’s ideas are every bit as new as the Claude Hopkins classic, Scientific Advertising, as you can see from the advertorials he puts in Realtor magazine.

There is probably more to the Quantum Leap System than I’m giving it credit for, but the essence of the thing is the long-standing teaser-ad strategy, as exemplified by the headline of this post. That much is covered in a very thorough and much more economical “system” in the form of the two Gooder Group Real Estate Rainmaker books. Ergo, here is my two step system for saving a ton of money by not buying into the Craig Proctor hype:

Step 1. Real Estate Rainmaker: Successful Strategies for Real Estate Marketing.

Step 2. Real Estate Rainmaker: Guide to Online Marketing

But remember, the short statement of the Craig Proctor philosophy is “Frustrate them with a problem then offer a solution.” You might just resolve instead to work with people you actually respect.

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