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Why free leads are only for the bottom feeders

People who accept free leads in the real estate industry are either bottom feeders or about to learn some difficult business lessons. #tinstafl

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bottom feeder

What Is a Bottom Feeder?

When it comes to creatures of the sea, a bottom feeder is an aquatic animal that feeds on or near the bottom of the body of water. However, people often use the term “bottom feeder” to refer to those who do not want to take care of themselves—instead relying on others for sustenance.

As an Independent Real Estate Broker, I’m always looking to recruit new agents to join our brokerage. And… I’m always checking out what the competition is offering and how the competition is advertising. Additionally, I’m always curious as to what agents are looking for when selecting a place to hang out their shingle.

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What Constitutes a Free Lead?

I’ve spent a lot of time as a lurker on Craigslist lately, and see that many brokerage advertisements mention free leads. From this and from my conversations with agents, I’ve concluded that free leads are very exciting to agents who aren’t extremely busy or productive. After all, if an agent were busy and productive, he or she wouldn’t have time to check out Craigslist and might not even be looking for a change.

If a company or individual tells you or advertises that they are providing free leads, here is what you need to ask:

  • Where do these leads come from?
  • Are they already qualified? If so, how?
  • How will these leads be delivered?
  • Is there any special compensation agreement if the provided leads are converted?

The truth is that I can give you all free leads right now—each and every reader of this article. All I need to do is pick up the Yellow Pages or look up a specific street or neighborhood and provide you with a list of individuals—residents and owners. And… now you have unqualified buyer and seller leads.

Clearly, there are better ways to identify buyers and sellers and convert those individuals into closed sales. Know that you do not need anyone to provide leads to you.

The Pareto Principle and Real Estate Leads

In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto’s Principle. While it may be misnamed, Pareto’s Principle or Pareto’s Law (as it is sometimes called) can be a very effective tool to help you manage effectively.

The 80/20 Rule means that in anything a few (twenty percent) are vital and many (eighty percent) are trivial. In Pareto’s case it meant that twenty percent of the people owned eighty percent of the wealth.

In the real estate professional’s case, it means that eighty percent of your business will come from twenty percent of your sources. Think very carefully and make a list of all of your closings over the last three years. Identify patterns where leads and closings came from a single source—such as an attorney, accountant, past client, friend, or relative. Can you locate a series of closings that came from one family or as a result of one relationship? Can you identify one referral source that led to a significant number of closings?

Why spend your time focusing on brand new leads—people whom you don’t know and who may not be well-qualified—when the very best lead sources (the ones that already give you eighty percent of your business) are right in front of you?

Two Sources of Increased Closings

The key to increased success can be derived from two main sources: 1) individuals already providing you with leads, and 2) friends and acquaintances who would refer you until the cows come home.

For both of these sources, continue to develop top-of-mind awareness. Remind these folks that you are in the real estate business and that you appreciate all the referrals that they have provided.

Consider others that are or can be your very best billboards. Who do you know that speaks highly of you to others? How can you make this person’s life easier and better so that they will begin to refer you more business? What can you do for them?

Developing a strategic and tactical plan to increase your work with existing and new referral sources can lead to a significant increase in closings.

Teach a Man to Fish

When speaking about bottom feeders looking for free leads, I often wonder whether those seeking these leads will know how to convert an unqualified or minimally qualified lead into a ready, willing, and able homebuyer or home seller. That’s the reason knowledge is so important. As they say, “Give a man a fish, and you feed him for a day; show him how to catch fish, and you feed him for a lifetime.”

If you want to increase your real estate closings, quit looking for your next meal and focus on enhancing your own fishing skills. In this way, you can generate infinite leads and see closings throughout your career—no matter the market.

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®, and Chief Executive Officer of Transaction 911. Before landing in real estate, she had careers in education and publishing. Most recently, she has been able to use her teaching and organizational skills while traveling the world over—dispelling myths about the distressed property market, engaging and motivating real estate agents, and sharing her passion for real estate. When she isn’t speaking or writing, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

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Business Marketing

A personalized daily digital marketing checklist

(MARKETING NEWS) For all businesses, it is not only essential to develop an digital marketing strategy, but also necessary to utilize it in order to gain customers, and ultimately make a larger profit. This app can help.

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clearpath digital marketing

There is no doubt that starting your own business can be overwhelming. Along with promoting your business at events, meetings and in person, digital marketing strategies play a key role in the success of a company. For all businesses, it is not only essential to develop an online presence, but also necessary to utilize it in order to gain customers, and ultimately make a larger profit.

Simply creating a website and Facebook page for your business is not enough. However, software tools can help simplify digital marketing. ClearPath is a tool that organizes and creates tasks to optimize your online marketing. By creating to-do lists for you based on your online marketing strategy, you can focus on the areas of marketing that improve your business, all the while receiving useful tips and advice.

Using ClearPath is pretty straightforward and only requires one prerequisite. Before beginning, you must have a website.

If you are already lost, don’t panic. ClearPath can help you develop an online presence. Once your website is linked up, you get to choose the marketing channels that you would like to focus on. These include Search Engine Optimization (SEO), email, social, content, analytics, local, pay-per-click (PPC) and Conversion Rate Optimization (CRO). Again, if you are lost, ClearPath is there to help you strategize.

After ClearPath analyzes your site, they start sending you customized tasks based they believe can improve your online marketing.

As you finish each task, you can simply check it off and it will disappear. New tasks will appear each day, and some may even repeat as they need to be updated.

Whether you are well-versed in digital marketing or not, staying updated with the newest ways to optimize your business online is a constant struggle. Tools like ClearPath give people a place to start. Although I don’t think it can supplement an active and experienced digital marketer, it is a tool that can help small businesses that cannot afford to add to their team yet. At the end of the day, it aims to save you time. And since time is money, your business will hopefully be more profitable.

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Business Marketing

Simple logo creation tools perfect for any freelancer

(MARKETING) You already know that even if you’re a solo writer, or lone developer, you need a brand in today’s online world. If you’re on a budget, check out these logo creation tools!

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logo creation

Freelancing is a major part of the landscape nowadays. In that capacity, you’re running your own one-person business. As such, you need to brand that business. You know that, but let’s discuss the actionables.

I don’t know about you, but when I hear the word “branding”, I immediately envision logos (which is super convenient because it brings me to my next point). You should absolutely have a logo as a freelancer, even if it’s simply just your name in a rad – but professional – font.

This will be useful on your website, social media, on invoices and beyond. You can even pop that bad boy into your email signature!

Ideally, you should hire a graphic designer that knows what they’re doing – you’ll get the best results. But if your budget is zero dollars, don’t you dare ask a professional for free work.

Instead, if you want to develop a logo for your personal freelancing brand on the cheap, check out five of our favorites below and see what works for you. The best part? These all have some free components.

  1. Picfont: Let me start with personal experience. My freelance logo (which is the cover photo of my Twitter), is literally just my name in a script-like font, and was made using Picfont. You can upload a blank background (or pick from fun royalty-free backgrounds) and choose from a variety of font options. Pick what you like, shape it out, download, and use. Easy
  2. Looka (formerly Logojoy) is also a great, easy-to-use online logo maker. You simply type in your company name/your name and go through a process of selecting colors and styles that you like. Looka then generates a selection of logos based on your choices. For an example, I created the logo for The Tidbit using Looka.
  3. Online Logo Maker: a wonderfully self-explanatory name. This logo maker is almost like a combination of Picfont and Logojoy. You can play around with different fonts, colors, and symbols to make a logo that fits you. This option also features high-quality Vector files.
  4. Canva is a great option because you can design a multitude of material (including flyers, presentations, graphs, etc.) If you’re planning to build a full-on portfolio with supplemental materials in addition to a logo, Canva may be your best bet as you can design everything to have a similar look – which is incredibly important for branding.
  5. DesignEvo: Their website describes it best, “DesignEvo is a free online logo maker with 8,000+ templates that anyone can use to bring to life a compelling, unique logo in minutes.” They have a drag and drop interface and hundreds of fonts.

Take some time to test drive these sites, play around with different logo types, and see which one gels best with you and your freelancing-self. Happy branding!

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Business Marketing

How to use offline marketing to your advantage in a digital world

(BUSINESS) We often become obsessed with new marketing strategies, favoring the internet over some traditional methods that continue to drive traffic timelessly.

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offline marketing open sign for small business

Everywhere you look, people want to talk about digital marketing. In fact, if you don’t have a digital marketing strategy in today’s business world, you’re not going to last long. But just because digital marketing is popular, don’t assume that offline marketing no longer yields value.

When used together, these strategies can produce significant returns.

“Some people will argue that traditional marketing is dead, but there are several benefits to including offline advertising in your overall marketing campaign,” sales expert Larry Myler admits. “Combining both offline and online campaigns can help boost your brand’s visibility, and help it stand out amongst competitors who may be busy flooding the digital space.”

How do you use offline marketing in a manner that’s both cost-effective and high in exposure? While your business will dictate how you should proceed, here are a few offline marketing methods that still return considerable value in today’s marketplace.

1. Yard signs

When most people think about yard signs, their minds immediately go to political signs that you see posted everywhere during campaign season. However, yard signs have a lot more utility and value beyond campaigning. They’re actually an extremely cost-effective form of offline advertising.

The great thing about yard signs is that you can print your own custom designs for just dollars and, when properly stored, they last for years. They’re also free to place, assuming you have access to property where it’s legal to advertise. This makes them a practical addition to a low-budget marketing campaign.

2. Billboards

The fact that you notice billboards when driving down an interstate or highway is a testament to the reality that other people are also being exposed to these valuable advertisements. If you’ve never considered implementing billboards into your marketing strategy, now’s a good time to think about it.

With billboard advertising, you have to be really careful with design, structure, and execution. “Considering we’re on the move when we read billboards, we don’t have a lot of time to take them in. Six seconds has been touted as the industry average for reading a billboard,” copywriter Paul Suggett explains. “So, around six words is all you should use to get the message across.”

3. Promotional giveaways

It’s the tangible nature of physical marketing that makes it so valuable. Yard signs and billboards are great, but make sure you’re also taking advantage of promotional giveaways as a way of getting something into the hands of your customers.

Promotional giveaways, no matter how simple, generally produce a healthy return on investment. They increase brand awareness and recall, while giving customers positive associations with your brand. (Who doesn’t love getting something for free?)

4. Local event sponsorships

One aspect of offline marketing businesses frequently forget about is local event sponsorships. These sponsorships are usually cost-effective and tend to offer great returns in terms of audience engagement.

Local event sponsorships can usually be found simply by checking the calendar of events in your city. Any time there’s a public event, farmer’s market, parade, sporting event, concert, or fundraiser, there’s an opportunity for you to get your name out there. Look for events where you feel like your target audience is most likely to attend.

Offline marketing is anything but dead.

If your goal is to stand out in a crowded marketplace where all your competitors are investing heavily in social media, SEO, PPC advertising, and blogging, then it’s certainly worth supplementing your existing digital strategy with traditional offline marketing methods that reach your audience at multiple touchpoints.

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