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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

How Instagram’s latest redesign is more sinister than it seems

(MARKETING) Instagram’s latest updates have all but repurposed the app into an online mall – one that tracks everything you see, say, and buy on it.

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Woman in hijab taking photo on her smartphone for Instagram, affected by the redesign.

Instagram started the new year off with a makeover in their latest redesign. The notifications button teleported to the top of the screen in the app’s new design, and now the “Shopping” button is in its place.

It’s a subtle yet insidious switch. You’re much more likely to select the marketplace out of habit, by accident, when searching your next dose of online validation.

The app has always been a vital tool for artists, craftspeople, and small businesses to promote their work — including myself. And the new redesign is intended to boost the visibility of those groups. At least, that’s Instagram’s argument.

In an article for The Conversation, Nazanin Andalibi of the University of Michigan School of Information provides a glimpse of what’s going on behind the scenes.

“By choosing to make the Shop tab central to its platform,” she writes, “Instagram is sending its users a message: This platform is a business, and interactions on this platform are going to be commodified.”

As an advertiser, Instagram’s popularity has exploded in the last decade. Even big pharma is in on the surge, with seventy pharmaceutical companies purchasing ads on the app in 2020. (That made it the fastest growing pharma advertiser of the year.)

As we know, Instagram not only runs ads, but also uses user information to filter who sees what advertisements. Now, shopping is explicitly a central function of the app. It sometimes feels like a digital mall… And that’s not really what people signed up for.

I’ve had my account for since I was a teenager, and the experience I have using the app today is totally different from what it once was. For one, it’s increasingly difficult to differentiate paid ads from regular user content on Instagram.

And second, I use Instagram to promote my work, but I don’t feel comfortable sharing personal details about myself anymore.

Because, to use Anadalibi’s words: “Sharing or seeking information about a difficult, personal experience on a social media platform and then having the platform capitalize on an algorithmic understanding of the experience–which might or might not be accurate–is problematic.”

That goes doubly so for youth, who may not be fully aware of that engineering.

For instance, a teenager searching for body positive posts might receive personalized ad results for weight loss programs. A human would probably realize that’s an inappropriate, even triggering suggestion. But algorithms don’t think that way.

Alongside the redesign update, Instagram has also faces recent criticism for their Community Guidelines, which prevent suggestive and explicit images and speech.

And whether you agree with the guidelines or not, don’t be fooled. Instagram isn’t concerned with uplifting its creators, or protecting its young users. Their only goal is protecting their new bottom line, and staying as ad-friendly as possible.

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Business Marketing

Ghost Reply has us asking: Should you shame a recruiter who ghosted you?

(BUSINESS MARKETING) Ghost Reply will send an anonymous “kind reminder” to recruiters who ghost job candidates, but is the sweet taste of temporary catharsis worth it?

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Stressed woman at a laptop with hands on head, considering if she should send a Ghost Reply.

People hate to get “ghosted” in any situation, personal or professional. But for job seekers who may already be struggling with self-esteem, it can be particularly devastating. Ghost Reply is a new online service that will help you compose and send an email nudge to the ghoster, sending a “kind reminder” telling them how unprofessional it is to leave someone hanging like that.

Ghost Reply wants to help you reach catharsis in all of this stressful mess of finding a job. Almost all of the problems and feelings are compounded by this confounded pandemic that has decimated areas of the workforce and taken jobs and threatened people’s financial security. It is understandable to want to lash out at those in power, and sending a Ghost Reply email to the recruiter or HR person may make you feel better in the short term.

In the long run, though, will it solve anything? Ghost Reply suggests it may make the HR person or recruiter reevaluate their hiring processes, indicating this type of email may help them see the error of their ways and start replying to all potential candidates. If it helps them reassess and be more considerate in the future and helps you find closure in the application/interview process, that would be the ideal outcome on all fronts. It is not likely this will happen, though.

The Ghost Reply sample email has the subject line “You have a message from a candidate!” Then it begins, “Hi, (name), You’re receiving this email because a past candidate feels like you ghosted them unfairly.” It then has a space for said candidate to add on any personal notes regarding the recruiter or process while remaining anonymous.

I get it. It’s upsetting to have someone disappear after you’ve spent time and energy applying, possibly even interviewing, only to hear nothing but crickets back from the recruiter or HR person you interacted with. It’s happened to me more than once, and it’s no bueno. We all want to be seen. We all want to be valued. Ghosting is hurtful. The frustration and disappointment, even anger, that you feel is certainly relatable. According to several sources, being ghosted after applying for a job is one of the top complaints from job seekers on the market today.

Will an anonymous, passive-aggressive email achieve your end? Will the chastened company representative suddenly have a lightbulb go off over their heads, creating a wave of change in company policy? I don’t see it. The first sentence of the sample email, in fact, is not going to be well received by HR.

When you start talking about what’s “unfair,” most HR people will tune out immediately. That kind of language in itself is unprofessional and is a red flag to many people. Once you work at a company and know its culture and have built relationships, then, maybe, just maybe, can you start talking about your work-related feelings. I believe in talking about our feelings, but rarely is a work scenario the best place to do so (I speak from experience). Calling it unprofessional is better, less about you and more about the other person’s behavior.

However, it’s unclear how productive Ghost Reply actually is. Or how anonymous, frankly. By process of deduction, the recipient of the email may be able to figure out who sent it, if it even makes it through the company’s spam filters. Even if they cannot pinpoint the exact person, it may cast doubts on several applicants or leave a bad taste in the recruiter’s mouth. It sounds like sour grapes, which is never a good thing.

There may be any number of reasons you didn’t get the job offer or interview, and they may or may not have something to do with you. Recruiters answer your burning questions, including why you may have been ghosted in this recent article in The American Genius.

Ultimately, you will never know why they ghosted you. If it makes you feel better or at least see the issue from both sides, the amount of job candidates ghosting recruiters after applying and even interviewing is equally high. Some people simply either have awful time management skills or awful manners, and at the end of the day, there’s not much you can do about that.

Focus on your own survival while job hunting, instead of these disappointing moments or the person who ghosts you. It will serve you better in the long run than some anonymous revenge email. There are other ways to deal with your frustration and anger when you do get ghosted, though. Try the classic punching your pillow. Try taking a walk around the block. If it helps to put your frustration into words, and it very well may, then do so. Write it on a piece of paper, then burn it. Or type it all in an email and delete it. For your own sake, do NOT put their email address in the “To” line, lest you accidentally hit “Send.”

The sooner you can let it go, the sooner you can move on to finding a better job fit for you.

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Business Marketing

Free shipping is everywhere… how can small businesses keep up?

[BUSINESS MARKETING] Would you rather pay less but still pay for shipping, or pay more with free shipping? They may cost the same, but one appeals more than the other.

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Person standing over pacakge, sealing with masking tape.

When it comes to competing with huge corporations like Amazon, there are plenty of hurdles that smaller businesses have to cross. Corporations can (and do) undercut the competition, not to mention garner a much larger marketing reach than most small businesses could ever dream of achieving. But this time, we want to focus on something that most people have probably chosen recently: Free shipping.

How important is free shipping to consumers? Well, in a 2018 survey, Internet Retailer discovered that over 50% of respondents said that free shipping was the most important part of online shopping. In fact, when given a choice between fast or costless shipping, a whopping 88% of those surveyed chose the latter option.

Part of this has to do with the fact that shipping costs are often perceived as additional fees, not unlike taxes or a processing fee. In fact, according to Ravi Dhar, director of Yale’s Center for Customer Insights, if it’s between a discounted item with a shipping fee or a marked up item with free shipping, individuals are more likely to choose the latter – even if both options cost exactly the same amount.

If you’re interested in learning more, Dhar refers to the economic principle of “pain of paying,” but the short answer is simply that humans are weird.

So, how do you recapture the business of an audience that’s obsessed with free shipping?

The knee jerk reaction is to simply provide better products that the competition. And sure, that works… to some extent. Unfortunately, in a world where algorithms can have a large effect on business, making quality products might not always cut it. For instance, Etsy recently implemented a change in algorithm to prioritize sellers that offer free shipping.

Another solution is to eat the costs and offer free shipping, but unless that creates a massive increase in products sold, you’re going to end up with lower profits. This might work if it’s between lower profits and none, but it’s certainly not ideal. That’s why many sellers have started to include shipping prices in the product’s overall price – instead of a $20 necklace with $5 shipping, a seller would offer a $25 necklace with free shipping.

This is a tactic that the big businesses use and it works. If you can’t beat ‘em, join ‘em, right?

That said, not everyone can join in. Maybe, for instance, a product is too big to reasonably merge shipping and product prices. If, for whatever reason, you can’t join in, it’s also worth finding a niche audience and pushing a marketing campaign. What do you offer that might be more attractive than the alluring free shipping? Are you eco-friendly? Do you provide handmade goods? Whatever it is that makes your business special, capitalize on it.

Finally, if you’re feeling down about the free shipping predicament, remember that corporations have access to other tricks. Amazon’s “free” prime shipping comes at an annual cost. Wal-Mart can take a hit when item pricing doesn’t work out. Even if your business isn’t doing as well as you hoped, take heart: You’re facing giants.

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