Social networking pays off
Part 1: Web is where the leads are
By Bernice Ross, Friday, June 27, 2008.(This is Part 1 of a two-part series. Read Part 2, "Which social network suits you best?")
Social networking may soon overtake virtually every other source as being the most important strategy for lead generation. Have you incorporated this powerful tool into your business?
What is a social network? According to Wikipedia, social networks are online communities where people can explore interests or activities that they share with others. The key point is that social networks allow participants to interact through chat rooms, instant messaging, traditional e-mail, video, video e-mail, file sharing, blogging and discussion groups. Wikipedia identifies three primary types of social networking services:
1. Directories such as former classmates
2. Means to connect with friends (Facebook, MySpace, Twitter and YouTube)
3. Recommendation systems linked to trust (LinkedIn)
For example, social networks are a great way to stay in contact with family and friends, as well as your clients. Many agents who have lost track of past clients and friends have found them through these networks. These sites also allow you to share pictures of your listings, videos, links to interesting articles, as well as important information for potential clients.
Granted, there are certain risks associated with being online. Whatever you post is there for posterity, even if you take it down. Identity thieves can check your work history. Nevertheless, the benefits of participating far outweigh the potential risks.
Marc Davison, in his column, "Today's open social a legacy from the past," states that these Web 2.0 applications are now the primary way for today's new generation of buyers and sellers to connect. Davison argues that many people fail to realize that Web 2.0 "is deeply rooted in good old-fashioned tradition. I submit that if applied correctly, blogs, Twitter and the like could very well be the vehicle by which those old-fashioned ideologies we honor so dearly can be resurrected."
Putting it a little bit differently, Web 2.0 is very much akin to the general store from 100 years ago. People came there to discuss politics, hear the latest gossip, and most importantly, find and maintain personal connection. The way that you participated was simply by being there. Davison's contention is that places such as Facebook, MySpace, LinkedIn and YouTube serve the same function today as the general store did 100 years ago.
In today's Web 2.0 environment, having a Web site with your bio, a branding statement and cool technology tools is no longer enough. Today's consumer wants to get to know you through the actions you take online, not just through the static content that you post on your Web site.
For those who have not joined in the social networking phenomenon, it can be overwhelming. Where do you start? What social networks are really worthwhile? How much time should you spend and where should you spend it? Should social networking take priority over other real estate-related activities? Do you need a blog or is a profile on Trulia and Zillow a better alternative? Can spending all this time online actually translate into closed sales?
The answer to these questions depends upon what you want to achieve online, how proficient you are with technology, how well you write, and how diligent you intend to be in terms of regularly participating. Much like the individual who sits at home and avoids interacting in face-to-face activities, if you're not willing to "be there" and be actively engaged in the social networking process, then this is probably not a good venue for your business development. On the other hand, given the huge proportion of younger buyers and sellers that frequent these various sites, not participating will cause your business to gradually erode as the next generation of buyers and sellers shifts to Web 2.0 solutions for their real estate needs.
The great news about the Web 2.0 environment is that most of the real estate-specific services are either free or very low cost. This means that you can experiment with different services and determine which ones are the best fit for your business.
The most critical factor in your success will be your willingness to contribute to those who visit you online. Bob Burg and David Mann in their book, "The Go-Giver," point out that you can't expect to earn interest until you put money in the bank. The same is true in terms of Web marketing using Web 2.0 solutions. To attract business, you must provide service that your Web visitors find to be valuable.
If you're ready to put social networking to work in your business, next week's article will show you how.
Bernice Ross, national speaker and CEO of Realestatecoach.com, is the author of "Waging War on Real Estate's Discounters" and "Who's the Best Person to Sell My House?" Both are available online. She can be reached at bernice@realestatecoach.com or visit her blog at www.LuxuryClues.com.
Ross will speak at Real Estate Connect in San Francisco, July 23-25, 2008. Register today.
***
What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.
All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.
Bookmarking Sites
Add A Comment
You must login or register to post a comment.
Submitted by Catherine Read on June 27, 2008 - 4:44am.
An excellent post and great points. An agent put it well yesterday in a class I was teaching for a Long & Foster office in Philadelphia: it's about PULL instead of PUSH. Traditional advertising and marketing has been about pushing information out onto the consumer public. Social networking is about pulling people into a conversation and engaging them. Consumers want to communicate in the way they prefer (email, blog posting, texting,etc.) and they want information specific to them personally and their unique situation. As Bernice points out, the days of posting lots of generic information on static website pages is over. We need to adjust to having real conversations and building relationships through new Web 2.0 tools.
Submitted by Matt Fagioli on June 27, 2008 - 5:43am.
I think your making a great point here about the fact that it's still about "time tested strategies" -- it's just the 2.0 delivery that's changed.
Matt Fagioli
Diamond Dwellings Realty
http://www.diamonddwellings.com
678.279.4707
Submitted by John Rowles on June 27, 2008 - 6:42am.
Not to pour sour milk on your social networking cheerios, but Search is still the necessary killer app for Real Estate and the Web in general. What empirical evidence is there that "Social networking may soon overtake virtually every other source as being the most important strategy for lead generation?"
More important than Search? I doubt it: There's a reason Google came before Facebook.
If they have listings, an agent's time is better spent developing the content search engines need to find those listings, because that is also the content that the Buyers *actually* care about.
It's not about you. For 94% of the audience, its about the listings, but many agents still want to believe its about them, and the focus on social networking in Real Estate plays to that ego.
John Rowles
Managing Director
MainRhode LLC
Google Powered IDX Search
www.mainrhode.com
Submitted by Dave Marron on June 27, 2008 - 9:22am.
Social Networking may work as an addition to a solid overall marketing strategy. However, I fail to see how some of these applications have any real relevance to real estate sales (emphasis on "sales"). Take Twitter, for example. I've used it (a little) and I've talked to others who enjoy it. Every time I ask someone if Twitter can help them sell a house they look at me like I'm insane.
We have a programmer who works at our company. He's younger than me and very bright. OK, he's a lot younger than me and way smarter. He uses Twitter, and 15 other social networking tools that most of us have never heard of. He absolutely laughs at the suggestion that Twitter can help real estate agents sell homes.
Is he wrong? Do you guys know something we don't? Maybe Bernice is going to tell us all about it in part II of this series. But, I can't wait.
Submitted by Catherine Read on June 27, 2008 - 9:46am.
I respectfully disagree with Mr. Rowles. If you want a dose of reality, visit www.city-data.com/forum/ and look at the forums they have set up for nearly every area in the U.S. This is where consumers are going to ask anonymous strangers for advice about where to live. It's not about property search first - it's about searching for the community you want to live in first. And the best information is coming from people who are living in those areas that consumers are considering.
This is a great example of "The Wisdom of Crowds" thinking. Why aren't consumers asking real estate agents for information on cost of living, commutes, crime statistics, etc.? Perhaps because many see real estate agents as self-interested sales people, not trusted sources of reliable information. One million consumers a week visit www.city-data.com looking for advice they can trust from people whose names they will never know.
Before you can present a consumer with information on every available listing in their price range they have to visualize themselves living in X,Y or Z community. There is no shortage of search engines for property information, but there is a huge shortage of the information people really want to know about prospective places to live. This is where agents need to focus their attention - becoming trusted sources of information with a name, a face, and demonstrable results for their clients. It's about relationship building right where consumers are - the web. Social networking is just one small part of adapting to a new way of doing business. Ultimately, consumers will choose to work with agents who can adapt to their communication style, their requirements and their expectations. And one style does not fit all - it never has.
Submitted by Daniel Rothamel, Inman Community Manager on June 27, 2008 - 9:55am.
Dave,
I agree with you about twitter, kinda.
You see, the issue is this-- one cannot sell homes unless one has either a) homes to sell or b) someone to sell them to.
Twitter CAN help you build the relationships with the people who can provide those two things. Is twitter good for marketing listings? Probably not.
Twitter is, however, intended to build relationships. Real estate is, after all, a relationship business.
Here is one very specific example of Twitter generating business from fellow Virginia REALTOR Jeremy Hart:
http://nrvliving.typepad.com/nrvliving/2008/04/have-i-told-you.html
For other examples of how Twitter might benefit real estate professionals, check out this post from Gahlord Dewald:
http://www.unionstreetmedia.com/blog/twitter-for-real-estate-or-business...
So, can Twitter work? Of course it can, it is just a matter of finding ways of applying it.
http://www.RealEstateZebra.com
Submitted by Dave Marron on June 27, 2008 - 10:45am.
Thanks, Daniel.
People win the lottery every day too!
Now that Egyption guy in Gahlord's post who told all his Tweeter buddies that he was in jail...that's great Twitter execution.
As for real estate, I still don't think it's a very useful activity.
Dave
www.FirstandElm.com
Submitted by G Dewald | Union Street Media on June 27, 2008 - 11:46am.
Hey Dave,
If you have a blog, please take a moment to write up an anti-twitter post. I'm trying to grow the "Naysayer" section of my Twitter omnibus.
I agree that for some people it won't be useful. However, for others it will. Just depends on your market segmentation, locality etc.
G. Dewald | Union Street Media | Internet Marketing Blog
Submitted by John Rowles on June 27, 2008 - 3:24pm.
I'm not saying that engaging people on social networking sites is inherently useless. I'm on LinkedIn. I get it. What I am saying is that it should take a distant back seat to providing detailed info about individual listings, which is what the NAR's own research shows is the PRIMARY reason people visit Real Estate sites, and those are the people who are more likely to actually be in the market.
Part of the reason citydata.com is popular is precisely because its users want advice from people who aren't ultimately trying to sell them something. Bad things can happen when Real Estate agents assume that social networking with the X and Y'ers is the equivalent of working the chamber of commerce mixer in the real world.
Take the agent who went to Yelp.com, a site where regular people write unbiased reviews about just about anything. It has a very strong community ethos based on authenticity, and they can smell a fake a mile away. Our hapless agent went on there and Yelped herself, a cardinal sin. All she was trying to do, from her perspective, was "get the word out" or "network". This is from her post after the fact on ActiveRain:
"I was attacked, mocked and maligned by a gang of volunteer "moderators" who hate Realtors. I apologized and pleaded with them to take down my profile and remove me from their system permanently. I resorted to threatening to sue them, and this led to even more mocking."
I can only imagine! If your primary motivation for engaging people on a social networking sites is to market yourself, don't. If you, like the guy referenced above, truly enjoy keeping track of 14 networking tools and letting your friends know you had orange juice for breakfast, then your job as a Realtor will come through naturally over time.
But, in my experience, agents aren't that patient. They will sign up, post something, nothing will happen right away, and so next month they will buy a GPS and see if that sells houses.
JR
Submitted by Daniel Rothamel, Inman Community Manager on June 27, 2008 - 6:07pm.
JR hit the nail on the head:
"But, in my experience, agents aren't that patient. They will sign up, post something, nothing will happen right away, and so next month they will buy a GPS and see if that sells houses."
Going from tool to tool just because it didn't produce results fast enough is one easy way to end up broke, surrounded by a bunch of tools.
He also offered this gem:
"Bad things can happen when Real Estate agents assume that social networking with the X and Y'ers is the equivalent of working the chamber of commerce mixer in the real world"
That is EXACTLY right. I happen to be a Gen X/Y'er (born in 1980) who ALSO practices real estate. When I talk to my friends and folks around my age about what they look for in a real estate agent, "I'm a top producer" usually doesn't enter their mind.
The world IS changing. People care less about YOU and more about how YOU can help THEM. Think about it, you can now watch TV on your own schedule, fast forward through ads, listen to ad-free radio, block pop-up ads on the Internet, search for ONLY what you want to find, the list goes on. . .
All of this has one theme in common, it puts the end user or consumer in ultimate control of the experience. Why should we assume that the real estate transaction will be immune from this trend?
This is exactly why the Agent JR mentioned had such a hard time with Yelp.com. She was trying to control the way in which the end users interacted with her. It doesn't work that way. You can't force them to like you. Someone has to Yelp you on their own. And, as a general rule, threatening to sue someone isn't the best strategy in the world for building trust and making oneself likable.
Social networking for business is marketing. IT IS NOT ADVERTISING. The agents that realize this first are the ones who stand the best change of realizing the benefits.
http://www.RealEstateZebra.com
Submitted by Bernice Ross on June 27, 2008 - 10:29pm.
Bernice Ross, CEO RealEstateCoach.com, the place you go to make Real Estate Dough!
Sorry to miss all the great comments in this thread--en route to Italy. One thought though, search first, but search doesn't create relationships. Social networking at least opens the door to do so. Ciao!
Submitted by Jodi Tussing on June 28, 2008 - 12:03pm.
Love the thread on this article! Have to say, I agree with John Rowels. I work as an in-house career development coach; our office ytd is the number one C21 office in CT. Our agents have come online kicking and screaming all the way- most are on the social network sites and are getting business from it.(for many I actually sat with them and made them do it) BUT - the business is coming from their listings - doing bloggs on their listings is the primary way - not on themselves- that and add HARD WORK, prospecting, prospecting, follow-up follow-up. Bottom line- there is no banana peal to success in this biz. If you don't have saleable listings - you are out of business right now. We are up over last year and our market is down. Our agents kick A_s. They work hard. We give them the support and the tools but it is not easy - this is a high octane mental attitude market - if you can't tap in, either learn how to or find a new career. LOVE the comment about GPS - so true, come on, lets get real, this business is hard work, fun, long hours, mental challenges constantly....the agents and brokers, mine especially, who can do this right now deserve our respect.
Submitted by Christine Donovan - Costa Mesa Real Estate on June 28, 2008 - 11:16pm.
I think that social networking is important though not the be all and end all for real estate and lead generation. I think it should be used as part and parcel of an entire marketing plan.
Website: Costa Mesa Real Estate
Blog: Costa Mesa Neighborhood Blog
Submitted by Ralph M on June 30, 2008 - 8:41am.
"But, in my experience, agents aren't that patient. They will sign up, post something, nothing will happen right away, and so next month they will buy a GPS and see if that sells houses."
So true.
Playing monday morning quarterback is great for the above post. I do not do that though. Nor, do I follow the heard into the slaughter mill.
That is the problem. Too many cows walking into the slaughter house and not enough leaders.
What is going to be the next big thing? Nothing will until the election changes our current politicians, regardless of your perceptions.
www.aarsteam.com
Submitted by Deborah Madey on July 4, 2008 - 8:18pm.
Social media in real estate is an efficient communication tool that allows consumers to connect with Realtors who possess the expertise which meets that consumer's specific needs.
When a consumer is searching for property information, it’s true, they are not interested in hearing about the Realtor and his/her accomplishments. When the consumer becomes engaged in a transaction, that same consumer certainly wants to have a knowledgeable and competent representative.
Property lisitngs and social media are compatible components of a Realtor's outreach to the public, not competitive. It isn't an either/or choice. Do both.