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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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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

Accessibility to your website could make or break your brand

(BUSINESS MARKETING) Some companies are making sure their websites have more accessibility, and are creating design tools that help simplify the process for other designers.

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In August, The American Genius reported that Domino’s Pizza had petitioned the Supreme Court to hear a case it had lost in the Ninth Circuit Court, in which the court ruled that the pizza chain was required to improve the accessibility on their website to blind and visually impaired users.

Last month, SCOTUS declined to hear the case, maintaining the precedent that the standards set forth by the American Disabilities Act (ADA) apply not only to brick-and-mortar business locations, but also to websites.

The decision was a major win for disability rights advocates, who rightly pointed out that in the modern, internet-based age, being unable to access the same websites and apps that sighted people use would be a major impediment for people who are blind or visually impaired. Said Christopher Danielson of the National Federation of the Blind, “If businesses are allowed to say, ‘We do not have to make our websites accessible to blind people,’ that would be shutting blind people out of the economy in the 21st century.”

Although legislators have yet to set legal standards for website accessibility, the Domino’s case makes it clear that it’s time for businesses to start strategizing about making their websites accessible to all users.

Many companies worry that revamping websites for accessibility will be too costly, too difficult, or just too confusing given the lack of legal standards. However, some forward-thinking companies are going out of their way to not only make their websites more accessible, but to create design tools that could help simplify the process for other designers.

A great example is Stripe.

If you have an online business, you may already be using Stripe to receive payments. Designers Daryl Koopersmith and Wilson Miner take to the Stripe blog to detail their quest to find the perfect and most accessible color palette for Stripe products and sites.

Color plays into accessibility for visually impaired users because certain color contrasts are easier to see than others. But making Stripe more accessible wasn’t as simple as just picking paint swatches. Stripe wanted to increase accessibility while also staying true to the colors already associated with their brand.

Our perception of color is quite subjective; we often instinctively have strong opinions about which colors go well together and which clash. To make matters even more complicated, existing color models can be confusing because there is often a difference between how a computer mathematically categorizes a color and how our eyes perceive them.

Koopersmith and Miner give the example that if the human eye compares a blue and a yellow that have the same mathematical “lightness,” we will still perceive the yellow as the lighter color.

To achieve their goal, Koopersmith and Miner created new software that would adjust colors based on human perception and would generate “real-time feedback about accessibility.” In this way, the designers were able to adjust Stripe’s pre-existing brand colors to increase accessibility without losing the vibrancy and character of the original colors.

Not every company can afford to hire innovative designers like Koopersmith and Miner to create new tools every time there is an accessibility challenge. But Stripe’s project shows gives us reason to be optimistic that improving accessibility will become steadily more … well … accessible!

Disabilities rights advocates and designers can work synergistically to set standards for accessibility and create comprehensive tools to achieve those standards. In our highly visual age, it’s important to ensure that no one is left behind because of a visual impairment.

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Business Marketing

10 inspirational print brochure examples

We believe that print is nowhere near dead, it is just changing as things go digital, and only the best stand out.

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Below are 10 inspirational print brochure examples that show print is not only alive and kicking, but when infused with a bit of creativity, can make an enormous impression. Gone are the days of horrid clip art and walls of text that overwhelm. Clean typography and design are the name of the game, and added flair can go a long way. Here are some ideas to get you started, click any of the images below to see more photos of each campaign and to dig deeper:

Craft Beer Field Guide

With this fold up brochure guiding Madison’s Craft Beer Week attendees, a vintage vibe is created through color and typography choices, with an emphasis on function and ease of reading. The guide is so enchanting, it is likely that most attendees kept the brochures, a dream for any designer or marketing team!

Italian Loft Brochure

In this Italian Loft Brochure, a classic Tiffany & Co styled blue and chocolate brown highlight the features of this luxury loft community, and is presented in a beautiful, heavyweight cardstock cover that keeps all additional papers that come along with tours. It’s more than just the brochure’s design, it’s the presentation, simplicity, and choice of materials that is eye catching about this print brochure.

Campaign for Freedom

Expressing the dire situation in North Korea, this campaign brochure uses simple to digest infographics and keeps to four colors – black, white, red, and yellow. It is effective for sticking to the point and using bold graphics.

Gourmet Natural Foods

Retailers often go overboard either by offering too many walls of words and facts, or by trying to be clever. Instead, this company’s design focuses on the simple ingredients that goes along with their streamlined, organic-looking containers. This brochure makes you want to go start eating hippie food, even if you’re a cow eater, just because it’s so aesthetically pleasing!

Graphic Designer Portfolio

When a seasoned graphic designer shows off, you can be sure that their presentation will never be an aged headshot of them with bullet points of their accomplishments. No, graphic designers show instead of tell, as below:

Typefamily Brochure

When introducing a typefamily to the world, a designer can choose to slap up a website, or go the traditional, and more elegant route of printing a type booklet explaining the type and giving buyers of the typefamily (font) a closer look at what they are buying. Brilliant.

Yahoo! Brochure

Yahoo’s brochure is a reminder that simple design elements can go a long way – a folding tab, white space, ditching clip art, and keeping consistency between pages all work in harmony to create a quality print brochure.

Antique News Format

In a very clever move, this commercial and residential space is being sold in the form of a large, folding antique- looking newspaper, complete with appropriate fonts and an antique layout, with surprisingly sharp and never cheesy images.

Architect’s Timeline and Story

Promoting an architect’s impressive timeline and story, this print campaign shows the power of red, black and white, making a dramatic impression at a quick glance. Using high quality photography and traditional movie poster tricks, the campaign is stunning.

Our Favorite: Lennar’s Old School Fun

Lennar’s new “Spencer’s Crossing” community brochures got a touch of old school, making the brochure a game that anyone can play. It’s more than a gimmick, it is consistent with their collateral that appeals to the youthful nature of the product and area.

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Business Marketing

Use the ‘Blemish Effect’ to skyrocket your sales

(MARKETING) The Blemish Effect dictates that small, adjacent flaws in a product can make it that much more interesting—is perfection out?

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Presenting a product or service in its most immaculate, polished state has been the strategy for virtually all organizations, and overselling items with known flaws is a practice as old as time. According to marketing researchers, however, this approach may not be the only way to achieve optimal results due to something known as the “Blemish Effect.”

The Blemish Effect isn’t quite the inverse of the perfectionist product pitch; rather, it builds on the theory that small problems with a product or service can actually throw into relief its good qualities. For example, a small scratch on the back of an otherwise pristine iPhone might draw one’s eye to the glossy finish, while an objectively perfect housing might not be appreciated in the same way.

The same goes for mildly bad press or a customer’s pros and cons list. If someone has absolutely no complaints or desires for whatever you’re marketing, the end result can look flat and lacking in nuance. Having the slightest bit of longing associated with an aspect (or lack thereof) of your business means that you have room to grow, which can be tantalizing for the eager consumer.

A Stanford study indicates that small doses of mildly negative information may actually strengthen a consumer’s positive impression of a product or service. Interesting.

Another beneficial aspect of the Blemish Effect is that it helps consumers focus their negativity. “Too good to be true” often means exactly that, and we’re eager to criticize where possible; if your product or service has a noticeable flaw which doesn’t harm the item’s use, your audience might settle for lamenting the minor flaw and favoring the rest of the product rather than looking for problems which don’t exist.

This concept also applies to expectation management. Absent an obvious blemish, it can be all to easy for consumers to envision your product or service on an unattainable level.

When they’re invariably disappointed that their unrealistic expectations weren’t fulfilled, your reputation might take a hit, or consumers might lose interest after the initial wave.

The takeaway is that consumers trust transparency, so in describing your offering, tossing in a negative boosts the perception that you’re being honest and transparent, so a graphic artist could note that while their skills are superior and their pricing reasonable, they take their time with intricate projects. The time expectation is a potentially negative aspect of their service, but expressing anything negative improves sales as it builds trust.

It should be noted that the Blemish Effect applies to minor impairments in cosmetic or adjacent qualities, not in the product or service itself. Delivering an item which is inherently flawed won’t make anyone happy.

In an age where less truly is more, the Blemish Effect stands to dictate a new wave of honesty in marketing.

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