The simple fact that the internet is a part of the returning real estate market is not big news, but with so much information coming out so fast, understanding it can be difficult. This article is the first in a series of six that decodes the basics, and even some mild intricacies, of the world of electronic marketing and will show you how to compete and succeed in an area of marketing where you might have previously feared to tread.

Back to School

It seems as though every continuing education class these days highlights one of the following areas:

1. Blogging

2. Social Networking

3. Lead Capture

4. Technical Optimization

5. Search Engine Optimization

Yet, at times you can leave class wondering what you have learned; or even worse, more confused than when you walked in. There is not much fault of the presenter in this, it’s simply that there is far too much information to digest in a short amount of time.

So to prepare you for the onslaught that is bound to occur the moment you step over the threshold into your CE class, you can consider this series of articles as both a primer for those classes as well as a foundation for your own internet strategy.

Current Trends

What has confused many real estate professionals is the question of why there has been such a push for internet marketing at every level recently. First, let’s understand some basics about the current real estate marketing environment. We all know about the boom and bust of the past few years, and how that period of time has torn into the precious fabric of even the most protected markets. Now there is a strong push for marketing once again and the key to understanding the push at the beginning of 2009 into the summer can be illustrated by understanding the trends for existing home Sales from May 2008 to May 2009.

• May 2008: 4.95 M

• Sept 2008: 5.10 M

• Jan 2008: 4.49 M

• March 2009: 4.55 M

• April 2009 : 4.66 M

• May 2009: 4.77 M

That is two months of uptrend in a row – we have not seen that kind of activity in the last year except in these two months. This is exciting news! As markets tighten people have a tendency to think of their marketing push as an ‘ebb and flow’ expense along with the rest of the economy. The traditional thinking is that you should decrease your expenses as the market cools and then increase marketing activity as market conditions improve. This perception is actually contrary to the facts simply because marketing after the fact does you very little good.

Budgeting for the Trend

By now you have likely forgotten the original intent of the article and can only think, “I’ve got to get in on that action!” Well, that’s where the good news / bad news scenario comes in. You may be missing the boat if you are not actively marketing now. Let’s consider the notion that clients will often start their search for an agent up to 8 months before they purchase and your marketing efforts are based upon the level of desire within the market. Therefore a potential client’s decision for an agent comes before the time that agents are actively beefing up their marketing efforts to attract them. So if you plan your marketing dollars based on a consistent up-trend/down-trend scenario you are missing out on quite a bit of business and will be lagging behind the rest of your local market. The far better scenario is to average your marketing dollars out over the course of a year and use them consistently across the board so that you are prepared for the trend swings well in advance, and thus able to catch those potential clients who begin their search earlier on.

By now we all know the NAR 2007 statistic that lists the Internet (tied with agents) as the number one source used in a home search (both at 84%). This stat in combination with the continual climb in general Internet adoption shows that it is painfully evident the trend has likely continued to climb two years later. Are you the one they come to? How many phone calls or emails do you actually get that say, “I found you on the Internet.” How many should you be getting? Let’s Get This Started! Of course you have a website, but that’s not the question, because nearly every agent has a web site - either privately or through their broker. The real question is whether or not you have a STRATEGY.

If you are not quite there yet then don’t beat yourself up. Few agents are really on top of their electronic marketing strategy at this point, and if they are it is because they have been on top of it from the very beginning. The best thing to do now is to pay attention, take notes and prepare to develop a multi-pronged approach that will put you at the top of your local market.

Whatever you current strategy is, with a new market and new technologies available, your journey is just beginning – make it a great ride! Next Article: It’s on Everyone’s Tongue – Blogging.

About the Author: Brandon Smith is a marketing expert in the real estate industry and college instructor. He can be reached at AgentExcel.

Published: August 20, 2009

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