Rethinking the impossible
People talk about raising the bar all the time and many, including myself, have placed that responsibility mostly on real estate brokers, and associations. The truth is, brokers are challenged with technological advances, shifting consumer demands, economical constraints, and growing pressure to provide more services and lower commission splits.
This seems like the normal challenges of any business in a modern economy, but the broker’s challenge has always been greater in that there is a leak in the model. The leak stems from the fact that their salesmen aren’t employees, they’re contracted labor. Ultimately, this means that many of the demands a normal employer would place on their employees, a broker cannot require without risk of qualifying the contractor as an employee, thus requiring the broker to provide benefits to the employee. This is obviously simplified, but that’s basically how it breaks down.
Loyalty between brokers and agents
Any Realtor in any city shows up to work when they feel like it, leaves when they feel like it, and can pretty much do what they feel like, including bailing on broker A for broker B at the drop of a hat. The loyalty factor seems low for brokers in general, in that there seems to be a broker in the wings ready to accept the influx agent to their team.
What’s the incentive to train or develop any agent when the loyalty factor is so low? And with an inability to place typical employer to employee demands on the agent, the writing is on the wall that brokers continue to be doormats. One agent I know has had three brokers in the past year, yet still there was a willing broker ready to sign them up.
The broker advantage
It’s not like the broker doesn’t have certain advantages, obviously they escape the need to present the contractor with the typical benefits an employee would receive, they don’t have to provide salary for under achievers, the door swings both ways and the loyalty factor to the contractor can remain low unless they’re a top producer.
The consumer disadvantage
What’s unfortunate about all of this is the consumer isn’t really left with much choice in the market place. If you pull the curtain back on this scene and consumers see the truth that there really isn’t much difference from brand to brand, the so-called real estate industry has a credibility problem.
The credibility problem is in the endorsement of the agent or the broker in either direction, neither really have a value proposition. The broker is not known for having the best agents in the business, nor are the agents with the best broker in the business, after all, the broker is expendable, right? So if you’re both expendable to the other, then ultimately your brands and services are expendable to consumer.
Folks can talk until they’re blue in the face about raising the bar, and it probably feels great to yell into the wind, but until someone patches the expendability issues between these two parasites, creating a true need for a symbiotic relationship, we will always have credibility issues with consumers.
One possible solution
One thought is the salary plus commission model that Redfin has in play. If you remove the discount from their model, and view solely their play in customer care and client care, you see that the model can work, they’re profitable and just turned five years old. The flexibility of the salary plus commission model allows the brokerage to expand and contract based on market conditions market to market, and in up periods, commissions expand with the market keeping salaried commissioned sales teams solidly in tact, as well as retracting allows the model to downsize just as any business would in a down cycle from market to market. Dead weight is shed off for the highest producing and strongest team players.
The value proposition within this model is brand loyalty from within, with team members working the phones and doing the business of the brokerage in shifts, executing proven sales systems with set expectations by the team managers.
Redfin is certainly not the first to look at this model, but they’re certainly the first to execute it, and they did it by raising capital. Their funding is what allows them to carry the costs that consumers do not understand is the value of the traditional broker. In a salary model, consumers would very quickly learn the value of the broker as they would now pay for this risk to be carried by the broker as a part of their service. Suddenly, the value of the commission in play is as plain as day in black and white. Certain states would have problems right up front as laws have been put in play to stop disintermediation of tradition, but these laws could quickly be reversed if the value for consumers is solidified by doing so.
How boutique brokerages would fare
Another added upside to this model is you would quickly see small boutique brokerages either fly or fail. Two things are in play, the top one percent of agents would certainly need a new broker as their business models depend on their ability to be independent, however, their income will not be enough to sustain a boutique as most top producers pay very little to hang their license anywhere.
The National Association of Realtors’ role
There has been some debate that turning to this model would begin to disintermediate the National Association of Realtors (NAR) from the membership at large and return it to a broker only club, but we suspect it would actually create newer and more exciting opportunities for NAR in terms of value to members.
Ultimately, turning freelance real estate professionals known as Realtors into productive salary plus commission employees satisfies a lot of what’s wrong with the so-called industry, but also creates new challenges and a new frontier. Until the broker and the agent see a real value in the other, you really cannot ever expect consumers to experience it.
Layoffs and a new value?
If a big box broker shifted to this model in the next five minutes, the first thing that would happen would be major layoffs of dead weight, keeping the brightest and best talent in house. A value would immediately be placed on the individuals left at the big box in terms of that base salary, and Monday morning, at 8am the brightest would show up for work ready to meet sales goals and expectations.
7 low-budget marketing ideas for small businesses to grow their reach
(MARKETING) Marketing ideas are often expensive or ultra time consuming, but let’s talk about some proven tactics that won’t break the bank.
The following marketing ideas are provided to you buy Threadsy:
No matter the size of your business, marketing matters! It’s important for small and big businesses alike to attract new customers, establish brand awareness, and to create buzz around products and services. But we know that not every business owner has tons of funds to devote to their marketing strategy. The good news? There are some highly effective marketing tactics that are also budget-friendly!
Here are seven low-budget marketing strategies for small business owners and side hustlers to grow their reach:
1. Sponsor Local Events
One of the best ways to get to know potential customers? Actually meet and talk to them! When you sponsor local events, you can be on-site to help people put a face with your business’s name. Sponsoring events is also a fantastic way to offer branded merchandise that can help you get your name and your logo out there.
Besides branded materials like signs, banners, or fliers, think about offering some fun items like wine bags to give away to attendees. Goody bags also make fantastic take-home options for local events. A branded canvas tote can be repurposed as an environmentally-friendly grocery bag, lunch bag for work, or a carry-all accessory for conventions and tradeshows. Print your logo on the outside and fill your goody bags with customized items like water bottles, notebooks, pens, and towels.
2. Let Your Colors Fly
Make some cool t-shirts featuring your logo! Wear them to the sponsored events mentioned above, out in the community, or anywhere you may encounter potential customers and can strike up a conversation. You can also offer t-shirts at a discount in-store or online, and turn your loyal customers into advertisers.
Quick tip: Purchase wholesale shirts to reduce manufacturing costs.
3. Social Media
If you’re not already leveraging social media to promote your business, it’s time to start! Think your customers aren’t using social networks? While certain demographics use various platforms more than others, according to fundera, 74% of consumers rely on social media to guide purchasing decisions. Plus, 96% of small businesses say they use social media in their marketing strategy.
So use your social media channels to level the playing field. To maximize your time and effort, determine where your audience members spend their time. Which platforms are they using? If you have a dedicated social media strategist on staff, they can perform audience research to tailor your approach to your existing and potential customers. If you’re running your own social strategy, spend some time digging into the demographics to determine which platforms make the most sense for your brand. From there, you’ll need to decide on the types of content you want to post, how to interact with your customers online, and create a social media calendar to plan your strategy.
4. Host a Giveaway
Once you’ve got your social media strategy up and running, why not host an online giveaway/sweepstakes to build some buzz, boost engagement, and attract followers? Pick a social media platform where you already engage with your customers. You’ll want to offer an item as the prize. This can be anything from a free product, a discount on an expensive product or service, or inexpensive swag like hats to help you promote your brand.
Once you’ve chosen the prize(s), decide on the terms for your giveaway. For example, an Instagram sweepstakes might look like this:
- Create posts about the giveaway and explain the rules (multiple stories and 1 or 2 posts depending on the length of the contest)
- These posts should specify the terms, for example:
– In order to enter, potential winners must follow you
– Encourage your followers to tag other people who may be interested. Each “tag” gets them another entry into the contest
– You can also specify that contest applicants must share your post on their own profile
- Once the contest has ended, pick a winner. Tag them in a post and story announcing what they’ve won and ask them to also share these posts to their own profile
Quick tip: You can also offer smaller or less-expensive items as consolation prizes. People love free swag and it’s an easy way to get your name out there!
5. Referral Discounts
Offering friends and family discounts on your products or services can help you establish loyalty and promote exclusivity. Offer discount codes or create a refer-a-friend program. You can also offer small incentives for customers who share about your brand on social media. Referral discounts are a great marketing strategy whether you use them in-store, online, or both.
6. Create or Update Your Blog
If you already have a website, you can put it to use to help build brand awareness and attract high-funnel customers. Blogging is a low-cost way to generate organic traffic (website visitors via Google or other search engines). If you don’t already have a blog, there are a number of free and inexpensive blog platforms you can use including Wix and WordPress.
You’ll want to write about topics that are related to your product or service and are of interest to your customers. For example, if you offer graphic design, you might want to create content about how to find an effective graphic designer online, or which projects you can do with an online platform like Canva vs. more complex projects where you should hire a professional designer.
Your website and blog are also great places to post “about us” content to offer website visitors an opportunity to learn more about you, your business, and your mission and values.
7. Update Your Google My Business Profile
Google My Business (GMB) is a free tool that allows you to share important information about your business like your address, hours of operation, and contact information. When your listing is optimized with this information, it’s displayed in Google Search and will also appear in Google Maps, which can help you attract local customers.
To get started, you need to create a GMB profile and verify your business information. This is a relatively simple but important step to ensure customers are able to find your business or service online. Make sure to keep your listing updated if you change any information like your website URL, address, or hours.
When creating your marketing strategy, remember to stay true to your brand. Not every tactic will be the most effective for every business. Choose the tactics that make sense for your brand or product offering. Another way to prioritize is to consider the perceived impact and effort of each marketing strategy. Use the strategies that require the lowest effort but will potentially drive the highest return.
Once you have those in place, decide which of the other strategies make sense for your customers and your business goals. Also, make sure to keep track of all of your marketing expenditures and the sales from these tactics so you can assess which ones were successful and which ones you may need to re-evaluate or alter.
Remember, when it comes to marketing, it’s an ever-evolving system. Trust the process and try to have some fun with your marketing strategy!
No-reply emails don’t help customers, they’ve run their course
(MARKETING) No-reply emails may serve a company well, but the customers can become frustrated with the loss of a quick and easy way to get help.
Let me tell you a modern-day horror story.
You finally decide to purchase the item that’s been sitting in your cart all week, but when you receive your confirmation email you realize there’s a mistake on the order. Maybe you ordered the wrong size item, maybe your old address is listed as the shipping location, or maybe you just have buyer’s remorse. Either way, you’ve got to contact customer service.
Your next mission is to find contact information or a support line where you can get the issue resolved. You scroll to the bottom of the email and look around for a place to contact the company, but all you find is some copyright junk and an unsubscribe option. Tempting, but it won’t solve your problem. Your last hope is to reply to the confirmation email, so you hit that trusty reply arrow and…nothing. It’s a no-reply email. Cue the high-pitched screams.
Customers should not have to sort through your website and emails with a microscope to find contact information or a customer service line. With high customer expectations and fierce ecommerce competition, business owners can’t afford to use no-reply emails anymore.
Intended or not, no-reply emails send your customer the message that you really don’t want to hear from them. In an age when you can DM major airlines on Twitter and expect a response, this is just not going to fly anymore.
Fixing this issue doesn’t need to be a huge burden on your company. A simple solution is to create a persona for your email marketing or customer service emails, it could be member of your team or even a company mascot. Rather than using firstname.lastname@example.org you can use email@example.com and make that email a place where your email list can respond to questions and communicate concerns. Remember, the whole point of email marketing is to create a conversation with your customers.
Another great strategy for avoiding a million customer service emails where you don’t want them? Include customer service contact info in your emails. Place a thoughtful message near the bottom of your template letting people know where they can go if they’re having an issue with the product or service. This simple change will save you, your customers, and your team so much time in the long-run.
Your goal as a business owner is to build a trusting relationship between you and your customers, so leave the no reply emails behind. They’re annoying and they might even get you marked as spam.
Influencer marketing isn’t new, it’s actually centuries old
(MARKETING) You may roll your eyes at sexy strangers hawking snake oil on social media, but influencer marketing is nothing new…
Influencer marketing is now one of those buzzword phrases that you can’t go a few days without hearing. In fact, it’s become such a popular term that it was officially added to the English Dictionary in 2019.
While this is a recent change, the concept of an influencer is nothing new. For years, people have looked to friends and family (as well as high-profile people like celebrities) to be influenced (intentionally or unintentionally) about what to buy, what to do, and where to go.
Social Media Today notes that influencers date back centuries.
One of the first “influencer” collaborations dates back to 1760, when a potter by the name Wedgwood made a tea set for the Queen of England,” writes Brooks. “Since the monarchy were the influencers of their time, his forward-thinking decision to market his brand as Royal-approved afforded it the luxury status the brand still enjoys today”
Now, influencers are known as people blowing up your Instagram feed with recommendations of what to wear and stomach flattening teas to buy. Influencers are basically anyone who has the ability to cultivate a following and, from there, give advice on how followers should spend their money.
After the 1760 tea set influencer, influencers were found in the forms of fashion icons (like Coco Chanel in the 1920s, and Audrey Hepburn in Breakfast at Tiffany’s), celebrity endorsements (for example, all of the money Nike made in the ‘80s after signing Michael Jordan to be their spokesperson – I wonder if Hanes is raking in the same bucks as Nike…), TV stars endorsing products (like Jennifer Aniston when she was at the height of “The Rachel” cut and became the face of L’Oreal Elvive; now she’s the face of Aveeno).
Then in the mid-2000s, blogs became a space where “everyday” people could use their voice with influence. This trend has continued and has shifted into social media, usually with a blog counterpart.
Now, blogging and influencing is an industry in and of itself with influencer marketing being a key form of comms. According to the HypeAuditor report, the influencer industry will be worth $22 billion by 2025. Where can I sign up?
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