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You know you’re a real estate agent if… top 40 ways

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You know you are a Real Estate Agent if …

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  1. Your car (or mode of transportation) has as many filing cabinets (or places that files can be stuffed) as your office
  2. Your monthly cell phone minutes are almost in the 6 figure mark.
  3. You can effectively answer the phone, reply to an email, send a fax, eat your lunch, review title work, send a text message, (throw a sheep), and set a showing at one time.
  4. The only time that you can be social (outside of work) is at 2am – online with the other real estate agents.
  5. You politely sit at the closing table across from the other agent who was so useless and incompetent through the entire process that you had to do BOTH sides of the transaction, yet he still gets his x% commission PLUS his $300 transaction fee, and you want desperately to throw those complimentary title company cookies at him, but his lawyer is sitting next to him, and you can’t afford a trip to jail … again.
  6. You are on your way to one of 50 appointments in a day when your buyer client calls and says, “I HAVE to see THIS house RIGHT AWAY! This is the one! This is the one!” about a house that you are quite certain they won’t like, but after politely telling them why it won’t meet their criteria, you make the illegal U-turn anyway and meet them at the property, where they hate the home, hate the neighborhood, the bedrooms are too small, there aren’t enough bedrooms and then are disappointed that you showed them something like that.
  7. You are an alcoholic.
  8. You have seven favorite restaurants where they all know your name, your profession, your client base, your title company, your lenders and that you’re an alcoholic.
  9. Starbucks is three of your seven favorite restaurants.
  10. Your Realtor® Radar goes off when anyone in a 3 mile radius starts talking about real estate.
  11. You’ve read the Code of Ethics, you follow the Code of Ethics, but cannot understand why 90% of the agents that you do a deal with act as if the Code was written in Vulcan.
  12. You have created different files for your investor “clients”: File A: Investors who know what they are looking for and know what they are doing. File B: Investors who kind of know what they are looking for and kind of know what they are doing. File T (for trash): “Investors” who tell you to call them when you find a good deal, from their apartment/Mom’s basement.
  13. You wish you were as popular and important as those lead-selling emailers/spammers/telemarketers would like you to believe.
  14. You are also a psychiatrist, divorce counselor, marriage counselor, babysitter, mind-reader, job consultant, teacher, mentor, creative genius … and an alcoholic.
  15. You sell a home to a couple, only to get a call 2 months later that they are getting a divorce; they thought the stress-free process of buying a house together would heal their broken marriage, but now they need to sell because one person can’t live with “that A$$h01e” anymore. (See #14)
  16. No matter how hard you work, one client will think you are overpaid.
  17. That one client who thinks you were overpaid goes out and gets their license because it is soooo easy to do real estate, and after one miserably failed year they go back to their previous job and you can’t help but smirk as you put them back on your newsletter list.
  18. You tell your seller from day one that the asking price needs to be lower and you keep telling them this throughout the listing period. After a few months of it not selling, they get mad at you, hire another agent, lower their price to what you told them in the first place and it sells in 2 days.
  19. You plan for a small vacation and all the business that you could ever want comes out of the woodwork 3 days before you leave.
  20. You come back from your small vacation to find 2,381 messages in your inbox and a “full” voicemail box.
  21. Your competitions hair is larger than your overnight bag.
  22. You’re still and alcoholic.
  23. You hold open houses just for the opportunity to check all of your emails and post blogs about how ineffective open houses are.
  24. You yell at your computer when the internet is down.
  25. You yell at your computer when there are no pictures in an MLS listing.
  26. You yell at your computer when your 8th cup of coffee spills on the keyboard.
  27. You actively show a couple of buyers over 200 homes over a course of a year in a price range that they demand to stay at. You find out that they have a champagne taste on a beer budget and suggest that they bump up their purchase price to closer to their actual qualification mark, as that will afford them more of the luxuries that they are looking for, but they refuse time and time again. Then you wake up one morning to a phone call from their lender congratulating you for finally finding a home for them (WTF?!?), and that is when you realize that they called on a sign in a yard on a home that was right at their qualification mark and went under contract with that agent. (Sorry. Personal Rant … but you get the drift …)
  28. You are a master at figuring out how to make almost everything in your life a “business expense” .
  29. You always get that slight knot in your stomach when you drive by a FSBO.
  30. Your own sister decides to sell FSBO.
  31. Pre-packaged and microwavable foods are your best friends – even better when they can be eaten while driving.
  32. You reconfigure your whole day to show a home and your “potential buyer” stands you up .
  33. You go to show a home to a buyer client and …
    1. There’s no key in the lockbox
    2. The key in the lockbox does not open the door
    3. There’s no lockbox
    4. You unknowingly set off the house alarm and don’t know how to turn it off
    5. There is a dead/drunk/sleeping person in one of the rooms
    6. The seller is there and manages to lengthen your showing time to 1 ½ hours with all of the stories that they have to share (see #14)
    7. The neighbor manages to lengthen your showing time to 1 ½ hours with all of the stories that they have to share about how much they love/hate the Sellers (see #14)
    8. You lock your car keys, the house key and your cell phone in the vacant house
  34. You attend any “Broker Open” that offers food.
  35. You attend every “Broker Open” that offers alcohol (see #7 and #22).
  36. You hesitate to have anything printed on the back of your business card, because they make such great note pads.
  37. You have been on the way to a closing when you get a call that the buyer went out and financed $15k in new furniture for a home that they can no longer qualify for because of their new furniture loan.
  38. After one year in real estate your spouse either leaves you (out of frustration) or joins you (out of
    masochism???)
  39. Your children want to become long haul truck drivers while working part time as full time doctors when they grow up because they don’t want to work as much as you do.
  40. You are still an alcoholic.

(Of course, if you are a Renegade Realtor® then there are about 35 more things to add to this list.)

Gotta Have A Plan

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For me, this time of year is more about questions than answers. I lose myself in thought asking a multitude of questions. What about my business worked this year? What didn’t? What in my relationships worked? What didn’t? What lessons am I going to take from this year and bring to the next? What’s my plan for next year? What are my goals? What will make me happy? What do I want to do? Where do I want to go? Who do I want to meet? What do I want to learn? What books do I want to read?

I pull up a calendar in Publisher and I start writing, copying, pasting, thinking. Am I going to do open houses? How many? When? Where? Popbys? Same thing; how many, when, where? Printed advertising? Newsletter? Mailings? Cold calling? Door knocking? Buyer seminars? Networking events? Client dinners/parties?

Do I need to say anything about blogging? I don’t think so. But I will say it is by far, no competition, my favorite thing to do. Whether it leads to business or not, it stays.

This year another favorite thing was to invite clients to dinner and/or a comedy club. It was an opportunity to laugh and introduce clients to each other. They made new friends and I had a great time. I’ll be doing that again, for sure.

I changed from a client appreciation program to a monthly newsletter. This has given me another opportunity to introduce clients to each other, announcing their special events, advertising their businesses and accomplishments.

I send out birthday, wedding anniversary and closing anniversary cards. I love those too.

Popbys are fun. I put goofy, inexpensive little packages together and stop by clients’ homes to say hello, I’m still here, got any friends thinking of making a move?

What’s 2008 bringing to you and you to it? Do you have a plan? What are your expectations? Ideas? Suggestions?

Some Old Rules Still Apply

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It doesn’t take much reading here on Agent Genius, or on other web sites aimed at real estate professionals to notice that our world has changed a bit in the last few years.

There are new “web 2.0” ways to market our listings and ourselves. One big difference between internet marketing and more traditional marketing is that internet marketing is less expensive.

I think by removing cost barriers some new problems are cropping up that no one is talking about. In the past an agent would buy a marketing program and use it. We could spend thousands on it, but before deciding to make an expensive purchase we would do a little research. After we made the purchase we would track the results. Smart agents will stop using products where there is expense and little or no ROI.

Many of the products we use on the internet today are free, or inexpensive. We write blogs, and join social networks, and use electronic flyer’s and web sites. Once the cost barrier is removed there really isn’t any reason not to experiment with every gadget, doodad and web site that comes along. (I know I do – when I have time)

The problem is, the social networks and blogs can be very time consuming, taking time away from revenue generating activities. They can also steal valuable family and personal time. That is the true cost of our newer marketing techniques.

We need to treat social media and internet marketing sites the same way we used to treat expensive marketing programs. Do some research, test the product and measure the results. If the results are not there it is time to move on.

Just because we can join social networks, start blogs and use some really cool internet based programs does not mean that we should. Keeping up with what is going on and even learning how to use new technology is a great idea, but spending hours each day on the internet “keeping up” might not be the best use of our most valuable and expensive resource, time.

Looking at “must join” networks like Active Rain, I see people spending hours online writing and commenting. Out of close to 60,000 members there have been some success stories. The success stories are quickly turned into “featured posts” so that everyone sees them. They write the same posts over and over again, and they get featured over and over again. That is what keeps the network going and growing.

The people who have not been successful, which is a much larger group than those who have had successes, either go away, or stay on and assume that success will come soon. Either way we don’t hear much from them or about them.

Not everyone has the same success with blogs or social networks. Not all social networks are equal and writing blog posts is not for everyone. My point is we should not be afraid to experiment and learn, but we should also keep track of how much time we are spending on the free internet services and hold ourselves accountable for measurable results. If the results are not there it is time to move on.

The neat new watchamacallit that one of our blogging buddies just wrote a glowing review of may have little or no value when it comes to building a business. Some products don’t have any practical application for real estate practitioners for revenue or lead generation.

Failure on the internet can be expensive, even when the programs are free.

How to add $150,000 in gross commissions to your bottom line

This past week I was in Toronto attending RRi Mastery 2007, a 3 day high level training program for some of Canada’s top Realtors (and a few from the US).

This was the 4th time I’ve been able to hear Richard Robbins speak, and as always, it was great.

I had the pleasure of meeting a fellow blogger and AG reader Steven Campbel. Check out the picture of me and Ari ‘Ziderforce’ Zider sitting front and centre.

Over the next few weeks I’m going to share some A-HAs I had about my business, in the hopes that what helped me can help you.toronto-mastery-ti07-pictures-0401.jpg

This will work best if you’re really active in the comments about what works well (or not so well) in your business.

A-HA #1 – every lead is gold.

Too often when a lead comes in (an email from your blog, a call from a local investor etc.) we are quick to dismiss it. Maybe they don’t want to meet in person, maybe they aren’t clear on what they want, maybe the rapport just wasn’t there when you spoke on the phone. Maybe they don’t follow up with us, and we forget about them. Sometimes we promise to get back to them with info and fon’t follow up the next day, or the day after… and pretty soon we say it’s too late to call. We’ve all done it.

I was speaking to a top agent from Toronto at the program, and he related a story to me. In May of this year, his team came to him and said they weren’t getting enough leads coming in – at least not quality leads.

The top agent sat down with a list of every lead that had come into his team’s office since January, just five months, and he called them all to see if they were still interested in buying or selling property.

What he found was staggering. 55 of the leads had bought or sold real estate already, after speaking to his team. Multiply 55 by a $5000 average commission, and you have a $275,000 oversight.

Better follow up & lead qualification would have added more than an extra quarter million dollars in revenue for his team in less than half the year. What is it costing you?

After hearing that story, I sat down and made a list of 30 people who I’ve met with and not yet done business. This list represents 30 investors who need my help to build their wealth, and one of the things I’ll be doing this month as we ramp up for 2008 is contacting and re-qualifying (more on that soon) them, and doing business with them.

How much money have you left on the table by not following up with your leads?

If you have 30 people who are ready to buy and sell waiting to be contacted by you (and you better do it before someone else does), and your average commission is $5,000, that’s $150,000 waiting for you to act.

What idea can you implement this month to double your business in 2008? Let us know in the comments !

Might Redfin Find Itself In Trouble with Redfinnians?

kaz_stewie2sadf.jpgI often swing by the Redfin site for a quick browse. The site itself is a suite of rich color (Google map colors), fun text (you maven, you), and simple navigation. Honestly, the site has managed to bring itself forward into conversational sweetness, the same way it made its search functionality into an offer making meaty goodness machine. I give many nods to Matt Goyer & the team at Redfin for their willingness to humanize their site and realize their market cannot just be techs excited about the use of Ajax. I mean, come on; most home buyers and sellers simply know a pretty site when they see one, and will certainly manage to find their way into a forum that directly answers their question- congrats on the forum success!

Again, I like to think of the Redfin site as an inspirational tool, I really do enjoy the permission I get when reading how they engage their consumer- use of PDFs, Images, incredibly fantastic use of copy, as well as the video? Video? I admit it’s been a month or so since I’ve really looked at the buy page, but this morning, I saw the video… As I sipped my cafe con leche, I watched this crazy insane video of baked to golden brown real estate perfection, admiring the imagery, use of human hands atop the drawn images, the marketing, the lay out, as well as the pace of the video- it was a marvel… until…

Now, maybe its just me, and my lack of IRS skillz (yes, with a z)- but it seemed to me that I may have witnessed a huge… I’ll just call it a mistake and offer the benefit of the doubt. What is the alledged mistake? Well, I am so glad you asked- Redfin promises its usual 2/3 rebate on a $500,000 house- this is utterly warm and toasty for the wallets of would-be Redfinnians. But the part that flew by at the speed of light was the part where the narrator says in regards to the rebate, “it’s tax FREE”. Whoa, it is? What!? I mean, unless Redfin is picking up the tax tab on the ten grand out of their five grand? Wow! Wouldn’t that be ubberly brilliant for the consumer! Way to go Red… wait, I smell a to good to be true.

I am updating this post because I found the IRS ruling regarding rebates or refunds at settlement to a Redfin client. Redfindid file with the IRS and request information regarding information and claims it feels the reply from the IRS was unambiguous to state that a rebate and or refund was not taxable income, however, this is one client and leads to this larger issue:

From Redfin: “Because you can only petition the IRS on your own behalf, not that of others, we could not ask the IRS to rule on the tax situation of each of our clients, only on whether we were obligated to report our refund as income. The IRS was also careful to say that a ruling on Redfin’s commission refund could not be used as a precedent for other brokerage’s commission refunds (though we don’t see why not).”

The mistake I was referring to in the video is simple, we are not in the business to practice law, or IRS policy, why would we ever state that something is tax free if we cannot guarantee that it is completely. My point is simply that it is dangerous to promise something that is absolutely out of our control. The quote above only makes my point- seek the advice of a tax professional- and in most cases, I would imagine your CPA will suggest you account for it and allow the IRS to sort out the details.

Paralysis by Analysis

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A couple of days ago I posted a somewhat meandering rant … well, rant may not be the correct term as the post lacked any significant level of vitriol … but it certainly meandered.

The underlying theme of my post about the mega-blogs, for those who missed it, is I’m just not all that bright sometimes. Or at least I don’t feel particularly bright when it comes to the world of Real Estate 2.0. I may be light years ahead of every one else working for my real estate company, but that doesn’t mean I know much.

But in truth, it’s not blogs such as Agent Genius and Rain City Guide that had me a bit stumped. And at the end of the day, I shouldn’t really be stumped by any. The point is to get yourself in front of the widest possible audience and, while I’m not that bright, I am smart enough to know my personal blog never will compete on readers with some of the bigger blogs out there.

So many developments are taking place on the web that it’s hard to keep up. I’m now Twittering. I don’t know. Does that make me a twit? I’m also on Facebook. I’m letting the profile my daughter set up for me on MySpace die on the vine because I don’t seem to be contacted by anyone but 19-year-old hookers.

I keep trying to figure out why they’re supposed to work when maybe the better strategy is to just try things out and let them work. I don’t think I’ll get a listing off of Utterz but it’s a hell of a lot of fun when you’re stuck in traffic. And it helps keep the posts flowing when there’s little time to sit down and right.

Jeff had it right when he said all of these blogs are part of the same larger conversation. At the same time, it seems like we need to find a way to shout out over the crowd to get folks to look our way. I’m not at all certain how to do that except to keep plugging along.

What’s funny is in other aspects of life I’m not too concerned with how things work. My ex-wife was an engineer – that was her gig (and my daughter’s shown tendencies that direction at various times, such as trying to figure out the inner workings of the carousel at age three.) I usually just trust that things are supposed to work the way they’re supposed to work.

Maybe I ought to apply that same theory to Real Estate 2.0 – stop worrying so much about how, why or if something should work and just try it. That’s how I ended up here in the first place, after all. And that’s not a bad result at all.

Happy Thanksgiving

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As we all gather around our family tables to give thanks for the blessings we have, the blessings we rarely notice, and the blessings yet to come, let us all remember also those who have not. Let us all slow down as we begin this Christmas season and take a moment to ask for Grace this Season, to remember those around us, to grant us patience, to grant us peace of heart & mind, and the opportunities reach out to those in need.

May God’s Peace Bless each and every one of you & your families this Christmas Season-

Benn & Lani

Also, if you have it to give, We’d like to echo Greg’s call for one last click– everything helps…

The Two Faces of Technology: Convenience vs. Communication

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I was thinking about technology and how we use it in our life – and by “our life” I mean Derek and my life. I came to the conclusion that we each use the HECK out of technology … but in completely different ways.

Derek uses technology for convenience.
I use technology for communication.

Let’s start with the cell phone:

Derek has about 6.3 billion numbers programmed into his phone. Any person or company that he could possibly want to call – ever, is programmed into his phone. He is about to purchase the Blackberry Pearl so that, in addition to the 6.3 billion numbers that he currently has, his scheduler and email can be just a click away as well. Pure convenience.

I, on the other hand, have “just” a cell phone. Yes. I am PDA-less. However, I have one of the most baddass superior-coverage cell phones on the market today. I only have about 20 numbers in my phone, and besides the small handful of work-related numbers (that I only have programmed so I know when they are calling me), all of my programmed numbers are for people that I LIKE to talk to (or text) and that I ENJOY calling. (I may get a PDA in the future – but only for the instant blogging and email abilities.) My cell phone is used PURELY for communication.

Next, is our Top Producer account:

Derek loves our Top Producer account because all of his To-Do’s and appointments and time blocked activities are in one place. Again … convenience.

I don’t know what I would do without our TP account. It allows me to send out personalized mass emails, as well as effectively and consistently communicate and keep in touch with our clients through the personal marketing report websites (for our Sellers) and action plan activities (for our Buyers). I do not use the scheduler, as I am quite happy with the planner that the title company gave me last December. (Shush. Stop laughing.) Again … communication.

Our website is another one:

Derek loves the functionality of our new website. All the buttons and available options are easy to find and easy to use. … Convenience.

I love the blog application that allows me to share my knowledge and experiences with potential clients. … Communication.

Finally the internet … Ah! The internet:

Derek loves Google Reader so that all the hacking-blogs (yet another convenience factor) that he loves so much are all in one place. He also loves JOTT, which is an uber time saver and gets all his thoughts and master plans in one place. Anything he reads or watches involves making his life easier – new products, new services, etc. Convenience reigns king in Derek’s internet experience.

I also love Google Reader. My reader is packed full of all of my RE Blogging Buddies Blogs and How-to-Be-a-Better-Blogger Blogs. I like keeping abreast of what is going on in the blogosphere and in different parts of the country, as well as learn how to blog more effectively. I like interacting with the brilliant people on Agent Genius, commenting on Active Rain, poking people on Face Book and laughing at – er, I mean with people on MySpace (no, you’ll never find my MySpace profile HA HA HA!). Blogging and Social networking sites (communication) are the bulk of my non-work internet time.

It is amazing how integrated technology is in each of our lives, but how we use it in such starkly different ways.

Ready to Jump In… Hope I Can Splash You All

Now, after much prompting from Lani, it’s my turn to try and sum up my being in an interesting little blurb – my professional being at least… so allow me to introduce myself to those of you who don’t already know me 🙂

While my experience is vast, I’m no blogging veteran. In fact, I’ve only been blogging for about the past 12 months (unless you want to count the old-school BBs), and I have to say it’s been a great ride so far. I’ve learned, I’ve shared, and I’ve grown. I’m a firm believer that when we teach, we often learn more than those we’re teaching. We learn about ourselves and our capabilities. We gain confidence when, through the validation of our peers, we finally realize that we actually DO bring something of value to the table. Having something to offer that’s helpful, or even invaluable, to someone else is a great feeling!

Personally, I’ve learned even more than I’ve shared. You see, my home real estate market, Central Oklahoma (specifically
Edmond, OK), is full of traditionalists. Those old-school agents who think the internet is just a fad, or a waste of time; those are many of the guys I’m “competing” with. The rest of them are newer agents who haven’t figured out that you have to be consistent with EVERYTHING you do. Picking a plan of attack in this business is great, but almost 100% of the agents out here simply give something a try for a short time, then quit and move on to the “next big thing” when they don’t see immediate results. They just don’t get it.

So, I am literally the ONLY agent in my market who blogs on a regular basis and spends the majority of my marketing $ on internet exposure, versus traditional mailouts, ads, etc. I’m a tech junky, and that gives me a huge advantage in many ways (more business, better results for my clients, more efficiency, etc), but it also leaves me nobody here to learn from in many cases. I have to be a pioneer of sorts. Love it and hate it. That’s where the blogosphere has benefited me most. I’ve built relationships with some leading agents around the country and picked up many great ideas and pointers on how to position myself above the rest. I’m always looking for another way to work smarter, as opposed to harder. As I tweak and modify, I’m able to do more in less time, which is ultimately my goal. I want to do more than my competitors, without sacrificing the clients’ interests, and I won’t give up the balance between the business that I’m passionate about and the family that I love.

So, obviously I’m here to learn from those of you who have figured it out, and to share what I know in many different arenas. I feel honored to have been invited and I’m looking forward to being part of the group… helping put one more piece of the puzzle in place I hope.

I’ll Show You Mine if You Show Me Yours

genius.jpgI was flipping through some old photos last night. It didn’t take genius to realize that I seem to be turning into one of the older guys on the block.

One thought that arose was – people born after 1965 may not have a black and white photo from childhood. I found it kind of interesting to look at mine and thought I would throw one in befitting this crowd of serious business professionals.

john harperHere you see me in costume for my first big ad campaign.

Notice the cutting edge technology I am leaning on. I was into Web 2.0 before Al Gore discovered you can manipulate data to support any theory you want.

I’m not clowning around here, we see it all the time in the media, including blogs. Well, that’s nothing new.

cal-worthington.jpgDressed like this, I could be selling cars like my friend L. James Johnson, the BayAreaCarGuy or better yet Cal Worthington – for those of you who have been in the Bay Area for over 30 years and remember his wild commercials.

As I look back on this photo, I can see I had the makings of being a mega-agent as well as a genius early in life.

This Thanksgiving I am thankful that this photo was not leaked out before now.

Let me see one of yours.

Behold the Mega-Blog

agent genius logoIt’s a credit to Benn that contributors here have free rein in terms of what they wish to discuss. That, of course, is a way of kissing up ahead of the larger point of this post.

I just don’t get it, folks. I don’t get the fascination and/or growth of the mega-blogs and I’m a contributor to one of them.

Last time I checked, the Bloodhound had 3,746 active contributors give or take a couple. Agent Genius similarly has grown. Ironically, Rain City Guide has remained somewhat stable over the last several months.

It’s not that I see anything wrong with such expansion – especially seeing as I was part of it. But I’ll admit that I don’t fully understand it. Perhaps contributing here will drive some traffic back to my blog – I’ve not seen it, but so be it. (I also see limited numbers coming from Bloodhound on the rare moments I make the final list for the Odysseus medal.)

I have determined this is my place to rant (aside from today’s questioning of NAR after reading Benn’s earlier post) and my home blog is more sedate, though not strictly local in any way, shape or form. So in that the dual blogs serve a purpose.

But still … what’s the point? If you have a very successful blog of your own, why jump into the conglomerate blogs (barring the need to vent or write with a different voice)? You probably don’t need more readers and you likely will not gain business being one of a dozen (or two or three.) You’re not promoting your own branding (theme one of e-Pro, which, naturally, is violated by the RealTown blogging platform. But that’s another story.)

Greg has said in the past that real estate will not be his last career. Watching the path the Bloodhound has taken, that next career seems to be coming on more quickly than may have been anticipated. Add a cadre of quality writers under one umbrella. Brand the blog. Then sell the secrets to success … wait, the seminar’s free. Still …

Maybe this is the wave of the future. Then again, a year ago I thought Active Rain was the wave of the future only to discover it was wobbling on its water skies passing over a tank holding a tiger shark.

And maybe that’s why I stay. Because I may not be as smart as I think. Might be worth hedging my bets and sticking around on the larger blog just in case.

Competition Brewing…

real-estate-ad-spending.jpgOnline marketing continues to heat up, according to the report released yesterday by Borell Associates.

The report predicts that by 2012, online ad spending in the real estate industry will surpass newspapers. Total real estate ad spending is set to simmer through 2012, but newspapers will be placed on the back burner, but not if they can step up their online game… Online spending in 2008 is not set to grow as quickly as it did 2007, but will continue its move upward as traditional media plummets.

The funny thing is, effective online marketing in real estate doesn’t involve spending money on ads as much as it involves spending valuable time.  Companies trained to rely on the dollar to work for them in marketing will be faced with a tough challenge: Participating in the market conversation, and building a brand personality through the Internet.  It requires deeper involvement and the willingness to navigate uncharted waters.  For marketers in high-level positions that still don’t “understand” the Internet, that sounds like a lot of scary work.

Regardless of how quickly they catch on, money spent on Internet marketing will be a lot more indirect than in the past.  We pay a web developers, designers, and writers (or employees) to market online, and let the market spread your message for you.  Sure you can take the easy way out and buy an ad on a major newspaper site… but don’t get mad when you don’t see the results you hoped for.

None of the numbers in the  summary really surprise me. As early web adopters, Genius readers should be happy we are firmly planting our roots now, and not tomorrow.  As the great migration occurs, many new adopters will find out that blogging, social media, and other permanent tactics may provide a longer-term return on investment than buying banners.  More will discover that brand building online will require that the company enters the online market conversation or be left unheard of.  In other words… it’s going to get crowded in here.

This thanksgiving, be thankful that God put us at the right place and the right time with the right gifts to be successful.  Now lets go use our gifts wisely.

PS:  If anyone gets a copy of the report (it’s $995.00) let me know.

Ask The Photo Guy

Camera Porn - Canon EOS 5D Mark II

I get emailed this question today…

Mr. Kay 
 
I’ve come across your website recently, and it inspired me. Your site is a good read and I check on it quite often. I agree that good photos go a long way in attracting possible buyers, and I’m going to start a side business taking photos of houses for agents and their listings.
 
I see you charge agents $60/house. I think that’s fair, but I’m curious as to how many agents are willing to pay that to someone for a service they think they can do just fine themselves for free. Especially in this “slow” market, where many agents are going back to the drawing board and pinching pennies.
 
The thing that intrigues me the most about the idea is that there is very little overhead or initial investment. It would only take me about 10 or so houses to pay for a new camera and equipment. Otherwise, I’m by no means a professional or experienced photographer, but I like to think that I have a good eye, and have always wanted to pick up photography as a hobby. Being a licensed agent in Athens, Ga. already, this business idea gives me a very good reason to jump into it.
 
If you have any initial advice or comments, I would love to hear from you.

 

For me this is a whole branding thing. I’m not just “taking photos on the side”, I am “Photo Guy”. It’s on my website, my business cards, my mailers yada yada yada. It’s my unique selling point as an agent. I’ve spent about six months just building up my photography skills shooting as many homes as I can. I’ve just formed as a company, with a major push to get stuff up on the website in the last month, so details on how much business I’ve done is pretty light at the moment.
 
I’ve had a mix of excitement and resistance to my services from the other agents. My office manager is very excited by it though.
 
My feeling is that precisely because this is a slow market, that is what makes photos an even more vital piece in the selling puzzle. In a hot market you can’t even get the photos up before offers pour in, in a slow market you need every advantage possible.
 
At this point just skill up as much as possible. Basically if you’re good, the photos do a good job of selling themselves. If you’re bad, nothing you can do will make people want to use you. I also found the Shutterfly.com printed books really good as sales pieces.
 
Also good photography just works. I shot a home two weeks back that had been on the market for nine months. It got a contract four days after we put my photos up. Agents bitching about $60 are just crazy.
 
Hope that helps, stay in touch.
 
Athol

 

And for the record…

…Mr. Kay is my father.

Austin Texas Realtors Get The Scrooge – Bah Humbug

nar-scrooge.jpgWe’re at the mercy of a bottomless pit. Where does the money go? Cash goes in, but nothing comes out but more stuff being sold to us- stuff that come complete with the 8 floppy disc set for proper setup with your Windows 3.0 or higher operating system- but runs in DOS.

Never mind the antiquated crap flung by vendors at the behest of the national and local boards- seriously, let’s talk about my new Austin Board of Realtors Bill that came in the mail today:

Invoice Dated: 11/15/2007 Due: 12/15/2007 (just in time for the Holidays)

2008 Abor Dues $125.00
2008 TAR Dues $97.00
2008 NAR Dues $80.00

2008 Trepac Investment $35.00
I won’t be paying this this year….or ever.

(Here’s the really weird part)
2008 ABOR Image Campaign $30.00 (MANDATORY- WTF?)
2008 NAR Image Campaign $30.00 (MANDATORY- WTF?)
2008 TAR Mobilization Fund $10.00 (WTF?)

Total Due: $407.00

I was thinking- NAR, TAR, and the other AR-o-saurs, why not pay me to come here and blog? It would save us 1000s of dollars in humiliating ad campaigns that will be torn apart in the media. Why not save us in Austin alone with 9000 members $540K… Why not call on some of us out here on the front lines for a little Q&A on the realities. Why aren’t you asking us for help? Why aren’t you doing anything but exactly what is expected? Ever heard of a box? Ever stepped out of yours- take a deep breath, inhale, exhale, stretch your legs, open your eyes, and take a really good look around already! I have no interest in helping NAR, let them take my $30 from the $80- let them eat ramen! Don’t you think my children would like something extra for Christmas this year? Sixty dollars goes a really long way? Why should I eat ramen this Christmas for your silly image campaign? My image is fine.

Mandatory, my ass. You people should really be ashamed- scrooge you!

Confessions of a Newbie

This is my first Genius post, so please be gentle.

Not many people know this, I have not written about it before. I am relatively new in the real estate industry. I got my license six years ago, and my brokers license last January.

I am a career changer. My background is quite corporate, and in my last job I was an executive with a company that provided technical consulting services. I chucked it all and started over. To this day no one understands why I did what I did, but they don’t have to, it was a personal choice.

The new world I entered was frightening. Trust me I am not easily frightened. I went from being someone who was respected, listened to and well paid, to a someone who did not know anything, and who had no income. It was a very humbling and traumatic experience.

The experience was an eye opener. For the first time in more than a decade I met professionals who did not have email accounts, computers or internet access at home, or in their offices. When I went to the resource room I would see my peers, doing their weekly email check. In general their customs and ways were alien to me. One of the biggest shocks was the five part carbon forms that were filled out by hand.

Other shocks to my system came fast and furious. In the world that I came from putting your face on a business card or resume was a big no no, considered unprofessional and even tacky. I hated open houses too. They seemed so . . sales-y. My background does include sales but it was different. I would buy someone lunch and talk about consulting services.

In my early days as an agent I felt like I had been cast out of the universe and had entered some hellish alternate reality, where on top of it all I had to pay my own cell phone and credit card bills. On the up side at least I didn’t have anyone telling me what color my suite should be or who I was having lunch with and where . . and when . . . and why.

When I started my new career my broker wanted me to “cold call”, and one of the trainers told me I would never make it in real estate if I did not start doing more open houses, four each week. Another told me that I had a bad attitude. That might have been true, shortly after I got my license I became ill and lost 20 pounds in a few weeks, but I never mentioned it, I just kept trying. . . even though my “tude” was questioned, and my new office was not very welcoming.

It wasn’t until I stopped focusing on what I wasn’t good at and started using my skills that I started having successes. I started thinking on my own and outside the box. What I learned is that my skills are very transferable and that I have a unique skill set that can be an advantage. I learned how to take my experience and skills and apply them in new ways. I used technology in new ways to build my business. Not the standard real estate industry technology but technology used by small business owners of all types.

I leaned that many of the role models in our industry started in the 80’s. These are our industry icon’s, and leaders. They do not need to change the way they are doing things, they should be able to work off their base and from referrals. What is missing from the picture is that if they lived in the same world as we do today, and needed new clients to survive, they would be doing things differently. They would have to because most of their new clients are on the Internet. Products and services are bought and sold every day with out the use of any of the real estate industry tried and true marketing techniques.

I have also learned that even though I have not spent my entire life in the real estate industry I have something to offer the industry. I look around and I see some of my peers who have similar backgrounds. They are the leaders in the newer web 2.0 world. As a group we create, innovate, teach and share. The influx of new agents in the last five or six years has given the industry some new blood and fresh ideas. A good thing in any industry.

As time goes on I spend less time and money on 80’s marketing techniques. I am not debunking them and don’t want to offend but the world has changed. There are marketing techniques that were never even dreamt of in the 80’s and I do my best to exploit them.

As a newbie I think I have something to offer the industry, and am thrilled to get the opportunity to do so through Agent Genius. I am not a genius, but an outside of the box thinker, mainly because I never found the box.

A Thanksgiving thought

I haven’t posted here in a little while. Not because I haven’t wanted to, I was just a bit distracted with that whole NAR2007 thing, and now this week is Thanksgiving. Not to worry, I’ve got so much material from the NAR Conference, that I keeping all my drafts organized is becoming difficult. Good stuff for next week.

Since this is Thanksgiving week, I wanted to leave you with something to think about. All I want you to do is ask yourself two simple questions:

1) What are you thankful for?

2) Why don’t you ask yourself question #1 every day of the year?

The Coming Mortgage Acceleration Tsunami (Part 1 of 2)

United First Financial (UFF) is marketing an equity accelerator mortgage plan which promises homeowners quicker loan payoff. I’ve been approached by several of their sales people in the past few months on the wonderful virtues of this program. These folks make amazing promises and quite honestly scare me. It’s not that I fear the program, its that I fear this program will be the next mortgage fad that will rob people of their homes.

Here is what UFF promises (from their website):

Qualified homeowners using the Money Merge Account system can now potentially pay off their mortgage within 1/3 to 1/2 the regular time – with little to no change to their day-to-day spending habits and without increasing their minimum required monthly mortgage payments.

The key word on this statement is “qualified”. Being qualified doesn’t only mean having the right income, credit score or liquid assets. Being qualified means fully understanding how the program works and what it means for you. If you don’t believe me about this definition I can put you in touch with the folks who got into Option ARMs thinking they were “qualified”.

To be perfectly clear, I have nothing against this program and I believe an equity accelerator program can help many homeowners. However, like the Option ARM before it, there is potential for abuse. It’s not just a hunch either. It comes from speaking with a few UFF sales people. They seem to act like carpenters walking around with a hammer seeing nothing but nails. I can already see Congress drafting legislation in 2011 to stop “past” abuses in equity acceleration. So, homeowners need to pay attention now!

To compensate for these sales folks who won’t give you anything concrete but only regurgitate what they’ve been told in their PowerPoint training, let me explain how the program works.

You start by either purchasing a home or refinancing your mortgage into a HELOC (Home Equity Line of Credit). This HELOC account also serves as your primary checking account. Meaning you make all your deposits into this account as well as pay all your bills.

As a deposit is made into this account, the amount gets credited immediately to the principle balance. Since interest owed is calculated on a daily basis, this in turn reduces the interest you owe on the balance.

So, instead of paying a fixed principle amount every month (as in a conventional mortgage), you get to apply all your income towards paying down the principle and reducing the interest owed. This simple act of reducing the amount of interest you owe cuts into the time that it takes to pay off the loan.

Since this HELOC account is also a checking account, as you make withdrawals against the account, you increase the principle amount you owe (you’re taking back from what you paid). As long as stay within budget, and leave some money in your checking account you will come out ahead. And over the long term this “left over amount” act as an additional payment to principle, resulting in a quicker loan payoff.

So, in essence, you attack the mortgage by reducing the interest owed and by applying additional money that would normally just sit in your checking account. Sounds good doesn’t it? In theory it is a great plan. It’s your ability to execute the plan that needs careful thought.

How do you know if you’ll be able to execute? I’ll discuss this in part two.

AgentGenius is Fired Up – We Write for You

realtors-real-estate-agents1.jpgYes, Agent Genius has added a lot of rich talent to the rolls, but you know what? It’s necessary. Why so much talent in one place? In the blogiverse, there are so many varying opinions on just about everything. So many topics are discovered almost every day spread over thousands of blogs. You need a team of writers that cover what I’ve termed as ‘tween niches’ or ‘TNs’. These are topic niches that cross one another, for example, social media’s tween niches would cover Twitter and Facebook, while disruption’s TNs would be Redfin, or other controversial dissenters from the status quo.

A few have asked how deep I’ll drive the talent wedge into the conversation, and my answer is always, ‘as deep as it takes’ to offset irresponsible coverage & opinion of the real estate environment. Sure, some of our writers have controversial positions on just about everything, but one thing is common here- we’ll back our positions with solutions and or ideas, and we’re willing to discuss with an open mind your thoughts on those ideas. I’ve noticed a real lack of sharing in the real estate blog scene in that those writers with strong opinions are less than willing to hear your counter point (or even acknowledge it). They simply dismiss you.

Another reason I’ve selected the writers of Agent Genius is because they’re active in the blog community. They comment. They travel around to various sites almost daily and engage. They’re hungry for the conversation and their motives are sincere. They’re on the real estate edge watching it be cut before their eyes and they shape opinion by actively engaging ideas on other sites. They’re not pompous nor believe they’re the absolute, even though their insight is deep and their talents are many.

I’m not going to sit here and brag about stats, nor am I going to say we’re better than anyone else, but what I am saying is that the talent here wants to actively be part of the solution and very few others can say that with a straight face. Our writers may disrupt, but it will be done constructively, not destructively, and we openly admit we’re not writing to consumers, we’re writing to other agents that are looking for answers- with an open invitation to the consumer to follow along, engage, and help us shape our tomorrow.

Are those with competitive natures seeing us as a threat? Maybe. Why? Because your opinion here at Agent Genius matters. So, I’m asking everyone to call attention to Agent Genius, the alternative balanced voice in the Real Estate Conversation. We’re not here for keyword rankings to our corporate or personal sites, we’re here for mass exposure of your opinions, the pulse on issues, and the way forward in the tech2.0 real estate environment. Join usIn the end, we’re all consumers…

Are you a Lion in the jungle of today’s technology?

So here I am part of this amazing group of Genius Realtors thinking…..How did I get here?? <pinch….OUCH!> A year ago I found myself doing what every other “normal” Realtor in the nation is doing.Real Estate Jungle

  • Direct mailings to my “sphere of influence
  • Monthly brochures that cost an arm and a leg
  • Cold calling (no….I never did that)
  • Thousands of letters to expired listings
  • Paying a lot of money for a static website with no presence
  • FSBO door knocking
  • Spending thousands of dollars on local newspaper ads
  • Bus benches
  • Magnetic calendars
  • Victoria Secret gift cards (just seeing if you were paying attention)

And all that for what? Was I seeing results? Was I selling listings? Was I doing a service to my clients? The answer is a big fat NO!

So what makes us Geniuses?? Is it that we are incredibly smart and good looking? (well…maybe that too). Or is it that we are taking advantage of the Web2.o tools that are in front of us?

Greg Swan, is trying out video interviews and did one with one of my favorite people, a non-Realtor that knows a lot about real estate – Jeff Turner from Real Estate Shows. Greg says the following in the interview:

“In the jungle where you are right now…..it is about how you take advantage of the opportunities that you have, anticipating that the world could be radically different 12 months from now”.

We ARE in a jungle and some of us are taking advantage of those incredible tools, some are hiding behind the bushes waiting for the tools to either come to them or to go away. Do you realize that by reading this post you are already ahead of the game? Many people that went to the NAR Convention in Vegas describe the majority of the attendants as being lost and overwhelmed by the amount of options that are out there.

How could people walk out of Seth Godin’s keynote speech before the Q & A segment? I would have had a list of questions longer than my 10 year old’s Christmas wish list!

We blog, we research, we use Trulia, MySpace, Yahoo, Real Estate Shows, YouTube, Facebook, MyBlogLog, Active Rain, Google Video, LinkedIn, Craigslist, podcasts, Twitter, Utters, Jotts…….yada yada yada ……the list in endless.

The reality is that some of these will come and go. We, on the other hand, Genius Real Estate Agents, are here to stay!

Fireworks and Unicorns- Teresa & Ines are on board!!!

fireworks.jpgToday is a magical day in Agent Genius land… imagine fireworks, fluffy puppies, unicorns and a massive drumroll as I get to the point… Teresa Boardman and Ines Hegedus-Garcia will be contributing to Agent Genius!!!!! I am so excited- y’all have no idea! These ladies represent some of the brightest talent in the blogiverse and I’m confident you already know them (everyone knows Ines & Teresa!). In case you were born yesterday, I’ll tell you a bit about them:

Teresa Boardman of St. Paul Real Estate BlogTeresa Boardman is like a breakfast burrito (which Mariana and I can agree is like the best food ever)- she’s got about 7 blog projects and endlessly innovative business practices all wrapped inside a warm tortilla. She hails from the corporate world which gives her the guts to write one of my favorite blogs, the Real Weenie and you are probably already subscribed to her uber famous St. Paul Real Estate Blog that has laid the smack down in her local blog scene (can you name another Minnesota blogger? I didn’t think so). She’s even braved doing a Bubble Gum Interview! What I love about Teresa is that she is always lady-like but never apologizes just for the sake of apologizing. Give Teresa a hand as she lets her hair down and shows her inner genius!

Ines Hegedus-Garcia of Miamism.comInes Hegedus-Garcia is like an ice cream sundae because she seems to make everyone happy, even in the hot Miami winters! Ines has a rich background in architecture and extends herself to several philanthropic causes. Ines’ blog, Miamism was big before I ever even knew what a blog was, so I can’t speak to her growth, but I can say that her blog has evolved into a very polished sexy work of art! Ines is always upbeat, funny and sweet- she’s like the homecoming queen of blogging. Give Ines a hand as she joins the group and makes you smile as she brings her sunny Miami genius!

Both ladies are awesome. I’m proud to call them both my friends and because I’m nice, I’ll share them with you readers. You can welcome them with candy, mojitos, facebook pokes, or most importantly your warm words of welcome in the comments. WELCOME LADIES!!!!

Risking the Kunahura in the interest of public knowledge

Such is the power of the kunahura that I rarely risk even thinking about a commission check until a contract has been signed and escrow’s been closed. The kunahura knows when you’re counting your chickens before they hatch and enjoys squashing those eggs.

Having said that …

This has been a busy week, most likely the busiest week of my career. In a two-week span I’ll have gone on four listing appointments (securing three listings with one in the air) and squired seven separate sets of buyers around the Valley.

One contract is being negotiated now and another should be completed at the builder this afternoon or tomorrow morning, kunahura willing. There’s also still a contract on a short sale pending and a decent chance for at least one more contract in the next couple of days and a slight chance at one or two others.

This may explain the brief blogging hiatus. But that’s not the point of this post.

The greater point is the notion of perseverance, of continuing to work in the manner you believe suits your business best despite the challenges and nay-sayers you will meet along the way.

My marketing plan is simple – I work the Internet. Of the two escrows I currently have, one is a corporate relocation and the other was referred to me by a fellow blogger. Both of the contracts now in play came from the Internet – one from my Arrowhead Ranch site and the other from the blog.

The client I’m meeting tomorrow and the clients I’m meeting Wednesday both came through the Westbrook Village site. Last week’s clients were referred to me by yet another blogger. Saturday’s buyers/sellers are friends of mine.

In short, the web works for me. Yet my attempts at electronic evangelism usually are met with skepticism (at best.) “I don’t know anything about that.” “I’m not techie.” Or my own personal favorite, “I don’t have time.”

It’s amazing that people who have time to spend four hours a week sitting in empty houses twiddling their thumbs, or who have the time (and money) to waste on pretty newspaper or magazine ads or door hangers or calendar magnets or you name it can’t find the time to work on their own web site.

What everyone wants is to pay someone to put together a web site and sit back as the leads and the checks come through. It doesn’t work that way. Prospecting takes time and it takes effort. Put those in and the leads will follow. Maybe not as fast as you hope and as fast as you may need but they will follow.

The naysayers are everywhere. Don’t put your eggs in one basket. The Internet is a fad. Blogging doesn’t work. Only hyper-local blogs work.

Your choice is simple. Listen to the reasons why something won’t work or get your tuchas in gear and show why they will work. It’s pretty much that simple.

Now I’m off to try and dodge the kunahura for another few hours.

Facebook – Genius Drip Marketing & Free

social.jpg

Click the image to expand completely or just go to my Facebook!

The cool thing about social media Facebook is you get a whole lot more than a free service. In marketing, we’re taught mailers, and then drip mailers from then on based on interest levels. You’re told that touching your client 2-3 times over certain periods can lead to a more promised opportunity to close someone on you or your product. I absolutely believe this to be true. But I bet you’re asking how Facebook could possibly achieve this?

I’ll illustrate:

  1. Set-up your Free Facebook account
  2. Add your friends to build your online credibility
  3. Re-tailor your emails, websites, mass mailers to reflect your Facebook address (apply some style to this)
  4. Invite them to get to know you by Facebook

Once you are a friend – Facebook provides the rest…

What could I possibly mean? You invite them to participate using Facebook’s many many applications:

  1. Superlatives
  2. Movie common interests
  3. Maps of where you’ve been
  4. etc… These are your drip campaigns
  5. Remember, once you have a connection, Facebook allows that friend to communicate with you via email

Now, using social media in this fashion is not a violation of social etiquette, it is actually the correct way to use Facebook without violating someone’s personal space.

In the process of using these great features Facebook provides, you are getting to know your clientele, and your colleagues on a more personal level. You no longer appear as card in the mail, you’re a cool sociable person, you’re hip, and you’re actually a pretty nice person with things in common with the consumers you’ve invited.

That I know of, there is no other social networking scenario that actually allows you to drip to your friends in a way that is not threatening. What a great way to get to know people in your very own market.

Top 5 Reasons Why You Wouldn’t Hire a Penguin as Your Next Realtor®

Often I am asked why there are not more penguins in the business of real estate – here in North America. Although it may not seem obvious to everyone, there are really good reasons why a potential Buyer or Seller would not hire a penguin as their next Realtor®.

Reason #1:
Penguins do not have the patience to deal with the random phone calls that other Realtors® have to professionally deal with on a daily basis. Penguins have a very short temper and have been known to actually throw phones through windows when non-committed, uneducated callers refuse to listen to logic. However, on the flip side, there ARE the penguins who jump at every call, but then have no time for their actual
clients. Neither scenario is good.

Reason #2:
Penguins believe that the Internet is a fad and refuse to make their presence here. (I know this because I guarantee that NO penguin will log on and actually dispute me. So, if you are a penguin, and you have embraced the internet as a tool in your business, please speak up … I’ll even email you a fish if you leave a comment here.) Do they not believe that over 80% of all home searches start online? Oh well …

Reason #3:
Penguins believe in a strict dress code. Personally, I believe that it is important to dress nicely for your clients, but that definition of “nice” differs from agent to agent and client to client. Penguins refuse to think of real estate as anything but a Black Tie affair. Ugh … please!

Reason #4:
Penguins never return phone calls. Maybe it is their lack of opposable thumbs. Maybe it has something to do with just thinking they are better than everyone. Maybe I could just make up excuses for this irreprehensible behavior all day long…. Regardless of WHY they never return phone calls, the fact is that they do not. This shows a complete lack of professionalism and there really is no excuse.

Reason #5:
Penguins are just way too selfish and self-centered.
I once witnessed a penguin at a local coffee shop making a complete ass out of itself. Who would hire someone like that? Nobody is THAT important…

So, if you were considering hiring a penguin as your next Realtor® please think through all these repercussions.

Anyway, if real estate really is a people-business, I guess penguins have no place in it anyway.

Allow me to re-introduce myself

Hey agentgenius.com, what’s crackin ?

I’m glad to join the publishing team here, at Lani’s invitation. She recently discovered our mutual love of The Roc via my facebook profile, and told me I had to blog here. Being a fan of the site, I quickly agreed.

Some call me That Wealth Building Guy; some call me the Real Estate Superhero.

I help people build their wealth through smart real estate investments; I speak, teach locally, and write about relationship building and working with people, how you can retire rich through real estate investment, personal growth, and anything else I find interesting.

I live in Kitchener Waterloo, Ontario Canada, home of the blackberry. We’re about an hour south west from Toronto, and I make it to the big city a few times a month – in fact, I’ll be there next week for a Richard Robbins Mastery conference.

They say the average age of a Realtor in North America is 93, and I’m about a dozen decades younger than that. I’m the Realtor running around in a Coogi sweater, Evisu jeans, and patent leather Pliners. I do things differently, and it works.

I will be bringing you ideas and strategies you can use to increase your business. If you want to start working with investors, I’ll show you how. If you want to increase your Sphere of Influence, we’ll cover that too. You can email me (benjamin[AT]benjaminbach.com) to let me know what you’d like to hear about first.

We’re going to have a good time here at AG; I’m glad to be along for the ride.