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Bart Wilson

Why Customers Leave

06-04-09
Bart Wilson

My phone won't stop ringing. You might not have this problem, but I wish you could. It's a very nice problem to have.

I went home today talking to my wife in the car about how frustrated I was at not getting more projects done because I had a lot of phone calls today.

She smiled and said, "It could be a lot worse. Your phone might not be ringing at all. We're still not out of the recession you know."

Why is my phone ringing so much? Because I eat my own dog food. I coach REALTORS to run Press Releases on what they do. Run one at least 3 to 4 times a year.

So, I ran a Press Release on 1888PressRelease.com that simply stated we can now offer small ticket financing.

Brokers and REALTORS that need things, virtual tour cameras, built from scratch websites, Internet Marketing, SEO, custom software, lead management tools. We finally made arrangements with a national leasing company so I can offer $7,500 to $10,000 of goodies to our customers as low as $94 a month.

People like to save money. We're offering customers a way to do that. So my phone is ringing. I have no reason to complain.

When you run a service based business, you have to be a good listener.

After the 24th phone call, it was clear to me I was starting to feel a lot like Lucy from Charlie Brown. Remember when Luxy holds up the coffee can for psychiatric help for 5 cents?

That's me now.

Too many customers out there are getting burned. Lied to. Cheated. Bait and Switch. Customers need to reach a live person and the firm routes their call to the sisters of voice mail mercy. It makes customers leave.

I went to a book store in Dallas about ten years ago. The Arapaho Mall had a poster on their wall and it had this information on it.

I thought I'd share this with everybody as it has taught me how to take better care of customers that hire me.

Why Customers Leave

R.I.P. Coldwell Banker Hunt Kennedy. Another One Bites the Dust.

06-04-09
Bart Wilson

CB Hunt Kennedy R.I.P.

Did your hear the news? Full service brokerages are going belly up. Goodbye Coldwell Banker Hunt Kennedy. They're dead and gone.

(taps music plays here) or if you prefer (another one bites the dust)

Did anyone ask Manhattan brokerage Coldwell Banker Hunt Kennedy what went wrong? What could have kept their doors open?

Business simply evaporated and many would have been customers simply went elsewhere or didn't buy at all. Could it be that the full service model is broken? We know the MLS model is screwed up. That's why RETS (Real Estate Transaction Standard) technology will soon make sharing of one MLS data easier with another MLS.

Maybe CB Hunt Kennedy didn't invest heavily into social media networking and their page one presence (naturally) on Google just wasn't there?

Maybe they all stood around like deer in the headlights and watched their sales melt down, because their sales of $22 million in 2007 shrank to $14.3 million at the close of 2008.

Out of their 200 agents and million dollar producers, 90% of them went to NRT's Corcoran (Barbara Corcoran's firm).

What happened? I'd like to know the facts. If you were at CB Hunt Kennedy, Chapter 11 of my next book: Real Estate Warriors has some blank pages. I'm hungry to put some ink on them with the inside story of how you collapsed.

How do you avoid being another CB Hunt Kennedy? You realize that Someday. Eventually and Tomorrow are three of the worst times to start understanding what social media and Internet marketing is doing to disrupt the market. Because this isn't your fathers real estate business anymore.

Adapting faster to the technology is what smart REALTORS have to do.

Take a look at one Keller Williams agent: Jamie Mades. He had a web presence with HoopJumper last year and he wasn't happy with his results. The Website was okay. Just not remarkable. Unlike other agents who complained about the crappy market, Jamie actually did something about it.

He had his website bull dozed and he had organic SEO done to his site.

Today he is page one #7 on Google for the search term: colorado springs homes

He is also page one on Google for the term: colorado springs military relocation

Jamie's investment was just under $18,000 for the real estate marketing make over, and in December 2008 he pocketed $40,000 in sales commissions. He reported an 800% return on his investment. These are all verifiable facts and Jamie is one of those kind of agents that will tell you the same thing I've just told you here.

See? Mom was right. You always GET what you pay for. There's no short cuts in getting to be top dog on Google. You have to spend money to make money. I've seen it over and over and over again. The smart brokers and the smart agents are investing in themselves. If they're with a national franchise, they are saying NO to cheap, me-too McWebsite templates.

Studies have been done which show some disturbing trends for those of us who want to remain active in real estate sales and marketing.

We need to learn from mistakes and the triumphs of others out there. It's a tragedy to hear that any brokerage goes belly up like Coldwell Banker Hunt Kennedy or AllPro Realty of Utah. But mistakes leave clues. While it might be painful to talk about it... a lot of Enquiring REALTORS want to know what went wrong.

Did they owe too much to REOLOGY? Should they have dumped them and gone independent a few years ago? Did they not invest enough into social networking and Internet marketing? Someone has to talk about this. This is the sixth Manhattan real estate brokerage to fail and from what I hear, there are more to follow.

In the mean time, we all need to be doing our own independent research and stop depending on our own trade association sources of information as being the only the sole source of our real estate dogma.

Inman News. Trone. Aberdeen. Yankee Group. Plan B Marketing.

All of these are good sources of information for you to be looking at and planning how you are going to tackle your financial future. Where are you customers going? If you're depending on REOLOGY or NAR for all of the information you need to successfully plan and build your real estate business, then you have to be content swallowing a lot of sugar coated propaganda. Because you are NOT getting the big picture as I used to say when I was a Director at Eastman Kodak.

The National Franchises want you to be happy and feel comfortable in the pretense that they know what the Hell they're doing when it's clear their leadership is questionable at best. They have no friggin clue. If they did, you as an ERA, C21, Coldwell Banker or a Sotheby's would be getting the following:

1.) A Do It Yourself Virtual Tour Camera and training how to use it

2.) An SEO friendly, built from scratch website that has the potential of being page one on Google.

3.) Following on marketing, training on using the social media. Twitter. FaceBook.

4.) Local marketing NAF dollars. Where did they go to? The co-cop marketing dollars are making their boat payments thanks to your continued support and paying REOLOGY your 7% royalties every month.

Is REOLOGY or NAR telling you that 48% of all people buying anything today from trucks to homes are looking to downsize and they feel big brands have left them down? I buy the reports every year from NAR and I never see this.

68% of Americans are going with smaller brands. Coldwell Banker, ERA, C21, Sothebey's are losing to independents. These are the facts of life today. Accept and do something about it. Or put your head in the sand and soon, you'll be another CB Hunt Kennedy closing your doors in a few more months.

FSBO's are getting super educated on what we normally provided them as full services and they are saying NO to REALTORS and listing their homes on ForSaleByOwner.com, Kayyah.com and other portals with the help of a local real estate attorney.

Many home owners are looking at REALTORS as no better than cheap used car sales people. They cannot justify coughing up 6% of their home when it sells. How do you combat that? Protection. Marketing. We have the best taxi drivers in town to take you from house to another. Get real people. This is all pure bunk now. Everybody does this. How does your brokerage stand out? Forget preaching from the REOLOGY bible. What does your gut and heart tell you that you can honestly say to a customer that makes you different than Bob the Broker down the street from Amazing Realty?

If you can't come up with a good answer, it's not a problem. Home owners are happy to say in one very loud voice: Agents? We don't need no stinking real estate agents.

So let's be realistic here and take off our rose tinted glasses;

FSBO's can get national exposure, you get the protection of a law firm and you wrap an attorney at fact transaction for $4,000 whereas a traditional brokerage selling a home at $500,000 would normally cost the home owner $30,000 in sales commissions. Many of us are at fault for this. How many listings have you put into REALTOR.com as a ghost listing? I admit it. I've done it. So have thousands of others.

Do the math: You use a national real estate portal to market your listing, you get a local starving agent to work for you at 2% or 3%, or you get a local real estate attorney and you pocket $25,000 in savings when your house sells. You give a customer a choice to spend $4,000 or $30,000 when their home sales and it's not hard to understand which one the home owner is going to choose here. Nobody is going to be willing to give you 6% of the home when they realize that they could pocket $26,000 of that sales commission and take the wife and enjoy four months in basking in the white beaches of Beliz sipping coconut drinks with tiny umbrellas in them.

If you keep reading I'm sorry to inform you my article gets a bit more depressing: 55% of Americans surveyed last year have lost their trust in our own government. Summer travel this year is down by 48%. Americans are staying at home. Sure Obama's recovery plan gives your next time home buyers an $8,000 tax credit and home sales are skyrocketing. But the depressing news is, mortgage rates are going up. Now what?

As President Obama pumps out the $8,000 tax credits for next time home buyers, the national debt goes up which forces increases in long term government debt which has always been tied to the mortgage rates.

Which is pure stupidity because this is like naming your dog; Stay.

Come here, Stay. Come here, Stay.

This kind of madness stops people from buying homes again. We start buying homes. Oops. Debt is going up. Mortgage rates go up. People flinch and stop buying homes because the mortgage rate jumps a full point. Or two. At this rate, we'll be back to 7% mortgages by October and all of you will be complaining again about the market again.

The part that really sucks about the recent Buyers Market and this recession is the huge shift in the buying behavior of your would have been next time home buyers. 73% of Americans are now shopping at less expensive retailers. Why do you think Walmart announced thousands of new jobs just this month are being created when corporate America continues to shed jobs at the rate of 500,000 a month?

Your clients want to pay less. Not 6% anymore. The writing is on the wall.

Sometimes we all need a hard kick in the ass. This is one of them. So wake up people.

Because the facts are a bit scary: Your so called loyal brand shoppers are switching brands for new, less known brands.

It's the same for shoppers whether they are switching from buying Del Monte Ketsup to Furr's brand and instead of using Coldwell Banker -- they're going to ForSaleByOwner.com and calling the local real estate attorney.

There's the ugly facts. What you do with them now... is entirely up to you.

- bartman

BROKERS: Time to Wake Up Now. Go Independent.

06-03-09
Bart Wilson

The glamour shot photos of REALTORS with big hair and white teeth are no longer an important part of your business today.

In fact, this kind of glamour photo marketing of pretty agents is completely insignificant today as your customers are no longer opening your drip marketing emails. Nor are they reading the local real estate guide ads or newspapers.

REOLOGY Corp (C21, Coldwell Banker, ERA and Sotheby's) has upped their ad spend on social media networking. They have increased their ad spend on Internet advertising and have reduced their ad spend on newspapers and stupid real estate guide advertising by 31.7% LESS in 2008 according to a report I just read yesterday by TNS Media Intelligence.

This means REOLOGY spent $129.3 Million in 2008 as compared to $189.4 million in 2007.

From where I sit, I sort of question this because I am NOT seeing any of this marketing benefit go directly into the hands of a Coldwell Banker, ERA or C21 office in any city I've done my research on. If I am wrong, now is time for one of your REALOGY offices to correct me on this. Or confirm it.

Because my next book is: "Real Estate Warriors," Life at the Top of the Real Estate Food Chain.

It will be a book and audio CD with interviews of the top 50 brokers in the United States. They will tell you their story of their struggles. They will tell you in their words why they went independent and why they're so glad they made the move.

Let's look at what's broken with buying any national real estate franchise today.

Your NAF dollars are gone. (National Advertising Fund). But the fat cats back at REOLOGY continue to get your 7% royalties every month and some of you actually own them a few months worth.

EXERCISE:

Does REOLOGY pay you any money to help you offset your AdWords or SEO marketing expenses?

Does REOLOGY give you a Do It Yourself Virtual Tour Camera kit?

Does REOLOGY give you any marketing co op dollars to help you pay for any offline marketing like radio or billboard advertising?

Does REOLOGY give you a team of CSS and Web wizards that will design you a unique looking, Web 2.0, SEO friendly website?

The answer to these questions is NO.

So why the Hell are you spending $35,000 or more on a REOLOGY franchise when they give you NOTHING you need to run your business effectively? These things above -- you have figure out where to get them on your own.

With so many garage startups out there slinging code who never once stepped inside an advertising agency are the ones cranking out the crappy websites for unsuspecting brokers. And the broker suffers. Or you do what Keller Williams did and they hired a couple of propeller heads to crank out the worst looking KW website templates I have ever seen in my life.

Lead management is an expensive joke from REOLOGY. Lead Router is more like Money router.

It goes from your pockets to theirs and I have heard countless Coldwell Banker agents complaining their brokers sell them leads from Lead Router for 20% or 25% of their commissions now. Just ask the agents at Coldwell Banker Prime Properties in New York with more than 20 offices. Are they happy with the broker's decision? Not from what I'm hearing.

Stupidity Illustrated: Why continue to stay with REOLOGY and continue to pay them 7% of your earnings when you don't get the four things you really need to be successful in today's social media marketplace?

You already know how to do the job of selling real estate.

You already know where to go and get your yard signs printed.

You already know how to write up the sales and do the job.

Once you learn how to sell real estate, you really don't need the training wheels on anymore. Do you?

Why not dump them and go independent? You'll save 7% of your hard earned money every month and to make things even rosier:

FACT: Customers do not care about the big brands anymore. They like the smaller brands, the micro-brands, the smaller firms are (in the mind of the customer) a better firm as they are perceived to be working harder. There is a huge behavioral shift underway. Too many people are dumping the big brands and going with the smaller ones.

Seth Godin has a book on this trend: SMALL is the new BIG. Get it. It's on Amazon.

Brokers are going to have to raise the bar and dig so much deeper into your pockets if you plan on getting to the top of the food chain. With so many of you still owing 7% of your earnings and being 3 months behind or more in your payments to REOLOGY... how are you going to make the shift without it being an expensive nightmare that never ends.

REOLOGY is using their money you've paid them to market more Coldwell Bankers, More ERAs, More C21's and Sotheby's. But is any of this money helping you at your office? Coldwell Banker launched a branded YouTube channel here recently, and while there's a few videos here, soon it will become another me-too video portal not that different from AOL.

The problem I see is that one CB office will be just another click away from another CB office.

Brokers can produce their own videos now, upload your own to YouTube with less than $99 in software from LQGraphics.com They make a killer product called Photo2Movie and I love it. The software works for Mac or PC. Add $200 in Google dollars and create your own traffic to YOUR site.

And guess what, all of this will be a FRACTION of the 7% you cough up to REOLOGY every month, too.

Nuff said on this topic.

- bartman

Lead Management Systems Need NOT Be EXPENSIVE!

06-03-09
Bart Wilson

Lead management. Lead creation. It's getting to be too complex.

What REALTOR doesn't cringe when they get the dreaded phone call from a lead shark?

"Hi Bart, this is your friend Lester at LEADCO. I've got a solid prospect for that house you have listed on 14 Altura Road. Good FICO scores, pre-qualified. Let me fax over this commission agreement to your fax number... we're only needing 25% of your....

OW! No. This kind of predatory lead management sucks and is just too painful yet there's a lot of us that have caved in and said yes to this kind of lead generation practice and it doesn't have to be that way.

Is your broker trying to get you leads from Lead Router for 20% - 25% of your already puny 2% commission?

Too many lead management systems are over built, over hyped and just too darned expensive.

Adding a two-way chat from WebsiteAlive.com is proving to increase leads by 48% with many sites I've seen. At $19.95 a month, compare that to your $400 a month, suck you dry, lead management service form HouseValues or Reply.

DO IT YOURSELF -- LEAD MANAGEMENT. 3 STEPS to INCREASED LEADS THIS SUMMER

Take that same $400 monthly ad spend and drop $200 on Google AdWords to get your visibility up.

Spend $19.95 on 2 way chat and take the other money you saved and run a press release.

Buy the book on Amazon: Groundswell: Winning in a world transformed by social technologies (by Josh Bernoff).

Top Ten Signs Your Broker Just Doesn't get It.

06-03-09
Bart Wilson

Home sales are up again. Hooo-rah! More than 6.1% sales jump for May 2009. April and March were strong months too.

It's time to warm up your websites, sharpen your lead generating tools and get ready to start enjoying some sales commissions.

A few of my recent blog posts have been on effective real estate marketing and the dark side of not using technology correctly.

I blame a lot of brokers for being cheapskates and morons when it comes to NOT using real estate marketing tools correctly. For brokerages that have sales of several hundred homes and making sales of $10 million, $20 million and more - I am just shocked and outraged when I see huge numbers of broker websites that all look like they got banged out on the same word processor -- today I am going to tell rank and file agents what to look out for.

Too many brokerages are imploding and going out of business. In their wake, they end up screwing the agent out of their commissions they are due.

In this rant and a few more to come, I will teach agents what the warning signs are. My 12 years as a real estate coach and consultant has given me the wisdom to watch out for these warning signs.

Bartman Top Ten Boo Boos

Below is the Bartman's Top 10 Warning Signs that your broker could be soon going out of business.

1.) Does your brokerage have an in house person to shoot your 360 virtual tours?

2.) Does your brokerage have an attractive, built from scratch website?

3.) Does your broker website have a natural, page one visibility on Google for the relevant search terms for your area?

4.) Does your broker actively promote new technology to help you with leads?

5.) Does your broker hire and bring in speakers and coaches to teach the agents what the new lead generating tools are?

6.) Did your broker just sign up for Cendant's Lead Router (or another program) and are they giving you the leads (in rotation per agent) for FREE?

7.) Does your broker do any ACTIVE participation with blogging or any social networking activities online?

8.) Did your broker cut your annual ad spend by 50% or more on newspaper ad or real estate guide advertising?

9.) Does your broker have a Twitter, FaceBook or corporate LinkedIn account?

10.) Is your broker able to schmooze and get any of the million dollar producers at Amazing Realty to come and join your place?

If you answered NO to 5 questions or more... this is not a good sign.

YOU -- as an agent can DO something about this if you like the brokerage you're still with.

1.) Get your agent to DUMP your Keller Williams crap website template. Or dump the other McWebsite template company you're with

2.) Hire a consultant that knows what the Hell they're doing. There's a lot of good real estate marketing consultants out there willing to help you turn things around.

3.) Start somewhere. The journey of a thousand miles always begins with the first step. If your broker doesn't get it... then kick things into gear and YOU CREATE a Corporate presence at LinkedIn.com for free. Then go to FaceBook.com. Same thing. Then start Chirping on Twitter. Just dive in and start getting other agents to help out.

4.) You're already here on ActiveRain. Good start, but get your BROKER here, too. Get other agents to jump on board at ActiveRain. Remember when you invite them, you get Active Rain Points! Hooooo-rah!

5.) Start looking at the competition. Go to Google and enter in the search phrases like: your home town + real estate. (dallas real estate, for example). See who shows up on page one. Sniff their source code by pulling down the Source and looking at the code. See how pretty one website looks when compared to another. Start to make notes of who keeps showing up on page one consistently. Go to Amazon and buy books on SEO and learn what it takes to make small changes to your site that over time -- can make a huge difference in online visibility.

6.) Write Press Releases. Upload them to 1888PressRelease.com. Pay $50 bucks and get them instantly linked into Google and other social media networks.

These top six things you can start today. If your agent is still being a sour puss moron, but you like the fact you have ZERO desk fees and you get good commissions, then go it alone and build your own Agent Website.

The critical things you need to do are:

1.) Build a website from scratch. Forget Z57. Forget Advanced Access, eNeighborhoods, Homes.com and the rest. Template websites are NOT the way to go.

This includes MosterTemplate.com, too. Remember today's next time homebuyers are not stupid or naive. They can spot a cheapskate agent a mile off.

2.) Hire someone who knows REAL ESTATE SEO. Search for that phrase on Google: (real estate seo) and go with a proven leader with a track record of consistent home runs.

3.) Get a good IDX into your site. Bartman likes iHomefinder IDX. It contains a built in lead manager and set up and deployment takes seven days or less. Your monthly fee will be $50 to $79 a month.

4.) ADD two way chat to your site. Go here: www.WebsiteAlive.com. Sign up for the FREE 10- day account. If you like it, get $10 off per month when you use this code: ARE1995

5.) Create a few press releases per year and launch them on 1888PressRelease.com

6.) Go here and buy some one way incoming links for $250 a month for six months. www.Rank4Sales.com

7.) Traffic Measurement and analytics. You cannot trust Google Analytics to give you accurate results. Google's purchase of Urchin combined with the fact they can control the algorithm of Google for AdWords and your Pay Per Click campaings is a pure conflict of interest. If Google needs more money, it is possible for them to tweak the algorithm and artificially report through Urchin (Google Analytics) that your results could be dropping when in fact -- they are not.

So stay out of that tar pit and go with an independent traffic analytics company. Go here: VisiStat.com and sign up. It's $29 bucks a month.

Steps one through seven above are what you need to do to get your site in better shape, impress customers, get instant leads and take control of your destiny.

Do these seven things above and in less than a year, your leads will double... or triple.

With 12 years of doing this kind of work, this is how I boil down the elements of what goes into a successful real estate business.

- bartman