The time honoured approach to prospecting for new business by real estate agents has largely consisted of door-to-door leaflets, local business networking, endless coffees and the ubiquitous press adverts comprising smiling faces alongside successful sales results.
Today - more and more the power in prospecting is online and the leading property portals around the world are reaping the rewards as they deliver just what agents want – sellers.
Here in NZ there are just under 9,000 active agents. All of them are self-employed contractors who whilst operating under the banner of their chosen branded company are solely motivated to become the most successful agent in their chosen geographical area. This hyper-competitive environment is what keeps on attracting people into the profession, yet it is also what makes real estate so challenging for new entrants. This has been the rich harvesting ground for the print media for the past decades and now become the cash generating machine for online property portals as the last of the print media for real estate finally dies.
Building a profile is tough as a rookie agent, as is it is for an established agent competing against all the noise of rookies trying to raise their profile.
It reminds me of a piece of advice I heard back in 1995 when I was first investigating this industry and undertook the real estate salesperson course at the time.
I was told that there wer three things you needed to be a real estate salesperson: (i) the money for the course – c. $1,000 at the time (ii) a car to take people around to see houses and (iii) a house. This last requirement was nothing to do with a home-office, and everything to do with the fact that if you could not generate any leads in the first couple of months, you could always list and sell your own home. Not to save the sales commission fee, but to be able to then showcase that you had a listing – and thereby demonstrate achievement of the first rung on the ladder!
This new online profiling tool is being marketed in NZ on realestate.co.nz as the featured agent service which places an agent advert adjacent to the listing result – spend enough with the company and you also get a photo adjacent to all your listings – why is it that real estate is one of the few industries where everyone is driven by their image, on the business card, online etc?? (a question for a later post I suspect).
In Australia the leading site of realestate.com.au has grown a business nowadays turning over in excess of A$250m from advertising of agents and listings with a company solely focused on online real estate valued in excess of A$2 billion.
It is clear that all types of real estate marketing, albeit property related or agent related is moving online at a pace so clearly it begs the request that the last to advertise in the newspaper, please switch off the machine!