The truth is, knowing what NOT to do in sales is just as powerful as knowing what TO do. Make sense? So I’ve assembled a list of ten of the dumbest things that we’ve seen salespeople do – things that are virtually guaranteed to totally and completely derail your selling career.

1. They don’t become students of their craft.

They begin strong selling careers, and they really get into it – but then they go to sleep at the switch and forget to do things like read industry publications or new books by sales masters. They don’t go to sales seminars. They don’t listen to audios or view videos on sales-related topics. In short, they don’t constantly re-invigorate themselves.

Did you know that the golfer Tiger Woods spends a million dollars a year on his Swing Coach? A million dollars working on his swing, every year! He is always looking to get better – and look where he is!

I am amazed by salespeople who don’t spend more than five or ten dollars a year on their own professional growth. We’re in a profession that’s changing by leaps and bounds, and we’re into the twenty-first century. If you’re still selling the way you sold in the last century – you’re in trouble!

2. They don’t “narrowcast” their offering.

Now, what do I mean by that? I mean that they don’t become specialists at a segment, or a particular type of market, or at delivering a specific type of product. They stay generalists.

Think about it. People get paid more to be medical specialists than they do to be medical generalists. The specialist has narrowcasted his or her offering.

The most successful salespeople master the art of narrowcasting their offerings. They become well known specialists in selling one thing, and people come to them for that one thing, every time they need it.

3. They fail to position themselves correctly.

The way people position themselves determines how they’re seen by their prospects and customers. In short, people pay attention to people whom they perceive as having something important to say to them.

The best way to sell is not position yourself as a salesperson, but to position yourself as an expert. One of the best ways we’ve seen to position yourself is to host an information session or how-to clinic on a topic related to what you sell. For example, a realtor might offer a seminar on “How to Get Financed for the Home You Want.” Or an industrial equipment distributor might host a workshop on how to install a particular piece of new equipment.

See? The goal of these sessions isn’t to sell something, per se. Instead, it’s to show people that you know a lot about everything to do with your business, and you’re willing to share your knowledge. (Other great ways to do this are through trade journals or articles, or speeches or seminars, or advocacy within an association or organization.)

4. They fail to prospect.

This is huge. The biggest cause of failure in sales is having an inadequate supply of qualified prospects. How do you get prospects? Like I said above – host informative sessions for prospective clients. Or send mailings targeted lists. Or speak at association meetings. Or host user’s groups. Or offer a webinar.

You always should have multiple methods of prospecting, because you want to be sure you’ve got a variety of types of prospects constantly filling your pipeline. And I have to say, take advantage of all the latest digital technologies that really can make it seamless and simple to deploy an effective prospecting strategies into the marketplace.

5. They get in front of the wrong people.

There’s an old statement that goes like this: “You can’t get rich selling to the wrong people.” You had better be in front of people who:

• Can make a decision.
• Have a need.
• Have a perceived problem, or a “pain.”
• Are willing to listen to you.

It can be easy to confuse activity with results because you are worried most about reports and numbers you give to your sales manager. You want to be able to go back and say, “Well, I was in front of these (number) of people.” But, my question to you is, “Are they the right people?”

Your own self-image, your sense of self-worth, and how well you’ve positioned yourself – they’re all going to affect whether you’re in front of the right people. And the problem is, if you enter at the wrong level, it’s very hard to work yourself up! You may alienate the people you first interfaced with, and the people who are at the top won’t see you as having something valuable to say, because you didn’t get to them in the first place.

6. They listen to their peers.

Listening to your peers often means you get too much negative input. You hear things like, “This isn’t the way you sell. Don’t listen to these guys, don’t follow their process. Don’t use this…it’s too theoretical. You can’t make more than ‘X’ amount of dollars in this business. This company is really bad, they’re always out to get us. We’ve got an inferior product. Our delivery is bad. Our prices are out of line. The commission structure on prices is unfair. The future’s bleak, the economy is bad. My boss is a jerk.”

It goes on and on and on. You’ve got to understand something: 80% of your peers are only delivering 20% of the results. And you know what? They’ve got nothing better to do than hope YOU’RE not successful, either. So do you really want to listen to 80% of salespeople? Get it?

Instead, listen to positive, upbeat stuff that really does make you feel good and think clearly. Whether it’s music, or motivational content, or something else that’s upbeat, or uplifting: Listen to it…and remember, most of your peers are not doing well in sales!

7. They don’t understand the economics of their product or service.

Here’s what I mean: Would you sell something for a buck and a half that cost you a buck? No you wouldn’t… But unfortunately, lots of salespeople don’t understand “value costing,” and that’s EXACTLY what they end up doing!

They don’t truly understand what it costs to deploy their solutions in the field. They don’t understand what telephone costs are, what manufacturing costs are, what advertising, marketing, promotion, and all other costs are – so they end up giving the product or service away.

And here’s a review of Economics 101 – if you’re losing money on every deal, you can’t EVER make it up in volume! But what so many salespeople think is “Look, it comes out of the company’s side – it doesn’t come out of my side.” To them, the company’s got a boundless supply of money and resources. But the truth is, the company’s money comes out of selling product at a profit. Period.

What salespeople are for is to sell, and to sell at a profit. If you don’t understand the economies of your product and your company – how can you ever sell it for the right price?

8. They mentally spend their Income – before they earn it.

If your pay plan is somehow designed to reward you for production or performance – not just a base salary for being around – listen to me! The sale is not made until you have received your commission check and it’s gone into the bank, and it’s cleared – only then is the sale consummated.

Why not? Think about all the things that can happen. You can have delivery problems, you can have delays. You can have cancellations, you can get knocked out of the box. Just because you receive a Purchase Order, doesn’t mean anybody has to exercise it!

9. They fail to ask the right questions.

In fact, not only would I say that they failed to ask the right questions – but maybe they failed to ask questions at all. Or worse, they did ask questions, but didn’t listen to the answers. So there are lots of important things to think about:

• Are they the right questions?
• Do you listen to the answer?
• Do you ask questions in the right way?
• Do you right them down?
• Do you ask them the right sequence?
• Can you extrapolate one question to the next?
• Are you really listening to what they say?
• Are you anticipating more about what you’re going to say next?

10. They are either digitally compulsive or digitally impaired.

In other words, they are so compulsive about digital technology, that they spend all of their time on the Internet, or in Sales Force Automation products, or on their Blackberry phones, or whatever. Or, they’re so impaired that they’re absolutely frozen about utilizing it.

But as simple as it sounds, as basic and fundamental as it sounds – the truth is, the most successful person is going to be the one who’s going to be in the middle. Bottom line: You should not be sitting in front of your computer screen all day long. You need to be eyeball to eyeball with prospects and customers.

Computers are tools. When somebody is out building a house, they don’t use a hammer for everything. They use a hammer for specific things that they’ve got to do. This is your hammer. When you’ve got a tool like a contact management software program – it’s a hammer. Pull it out, use it when you need it, and then put it back in your belt. Go on and do what you do…don’t live in front of this thing. But, also, don’t go out and try to build a house without a hammer in your tool belt. Use it, when it’s appropriate.

This is the best that I can give you of the ten reasons why we’ve seen salespeople fail. So what does that mean? It’s pretty simple: Don’t do these things! You’ll keep your selling career on the right path.

by Bill Brooks

The key market trends affecting the real estate market are changes in:

1. Advertising, marketing, and the media’s assault on the consumer has lead to
   a change in consumer’s expectations and tolerance levels. Real estate media
   exposure led to increased consumer activity.
2. The amount of knowledge required for an agent to be perceived as an expert on all areas of real estate, and the diversity in the market, has lead to specialization.
3. The need for Realtors® to identify a specific target market otherwise their
   marketing will not be effective and they will waste a lot of money.
4. Developing teams that lead to high productivity.
5. Demographics and Geographics – A new generation comes into home
   buying age, and the baby boomers choose to move into warmer territory.
6. Technology and the internet could change the entire industry.
7. A shift in the market from buyers and sellers, dilution of market by too many agents, higher interest rates result in more foreclosures, and the higher cost of housing resulting in higher debt level and affordability issues.

We’ll look at each of these areas individually.

Trend #1 – Advertising, marketing, and the media’s assault on the consumer has lead to a change in consumer’s expectations and tolerance levels. Real estate media exposure led to increased consumer activity.

Tivo, Moxi, DVRs, “Do Not Call” lists, iPods, and spam filters are sending a message to the advertisers that consumers want the option of not hearing from them, and they are becoming more discriminate about what they listen to and watch. The consumer feels barraged with people trying to get their attention. With fraud expanding, people are starting to get leery. There is little tolerance for uninvited advertising. Consumers are looking for ways to eliminate you and figure out how to get the information they want, without having to talk to an agent until they absolutely have to.

All marketers are being required to understand their potential clients better, and figure out a way to touch them the way they want to be touched. Otherwise, they will just turn you off and tune you out. Too many agent’s marketing is all about the agent and does not engage action or participation on the part of the consumer.

N.A.R. states that 50% of all listings failed to meet the consumer’s expectations. With 77% of consumers on-line, they have a lot more knowledge and therefore are expecting more from agents. Consumers want to be kept informed. Most agents only call when the client calls them. That is not outstanding customer service. The consumer is wondering why agents are getting such a high fee. Just because houses appreciated 50% does that mean they’re getting 50%

better or more service? Rarely.

With the insurgence of real estate investment “get rich now” television programming
along with the different fix-r-upper, flip-this-house programs, the consumer is exposed to new areas of real estate; new possibilities they hadn’t considered before. They have become more knowledgeable and see it as a new opportunity to make money while still having their “day jobs”. There are still opportunities, but a cooling has occurred due to increased inventory and less appreciation. Many investors found themselves upside down in a saturated market. Some choose to bail out and take a loss, others are holding for the longer term based on the migration trends of the baby boomers. This situation caused more uncertainty in the market.

Trend #2 – The amount of knowledge required for an agent to be perceived as an expert on all areas of real estate has lead to specialization

Let’s face it, real estate has many different facets. I came up with 26 different areas you could choose to specialize in. I’m sure there are more. People think they can be all things to all people. That is impossible. We know this from our own personal experience and yet we can get ourselves into a situation of saying, “Sure I can handle that.” Well, if someone came in and said, “I want to do business with you, regardless or how knowledgeable you were, then you were lucky. Today’s consumer wants to know that the agent they are dealing with knows what they’re talking about. They like working with experts. The agents lack of knowledge will guarantee not getting the best deal for the client.

Also, to differentiate yourself in the market, specializing gives you that avenue. If you
said that you specialize in golf property, then if I was interested in golf properties I’d be talking to you and if I’m not, I wouldn’t. So many agents think this will limit their
market, yet in the long run it makes it simpler for the consumer to know what you do, what you’re an expert in, and that you understand their needs.

With the diversity of generational expectations, varied use of technology, consumer expectations, and cosmopolitan geographics, it has almost become a necessity to specialize in a very target market.

Trend #3 – The need for Realtors® to identify a specific target market otherwise their marketing will not be effective and they will waste a lot of money. It is combining both on and off-line marketing to fit the needs of your target market. You hit the mark in this area and you can gain significant market share.

This follows in the path of specialization. If you are specializing in a given area, you have chosen a target market. You may have to take that specialization and target it even further depending on what specialization you’ve chosen. For instance, if you had decided to specialize in an age range or generation, that would still be too big to fit a target market to be effective with your marketing.

If you have that “I can handle any real estate transaction” attitude, it probably carries over into your marketing. If you live in a town of 50,000 people, and think you can market to all of those people, it is a foolish and expensive assumption.

We are in a transition period that requires both on-line and off-line advertising. Unless, you have decided your target market are people who exclusively use either on-line or off-line for their buying decisions, there are not too many that fall into just one of those categories. This has made marketing, which most agents don’t do very well, even more complicated. Marketing is being re-defined, which is leading to some new innovative ways to reach the consumer.

Borrell Associates says that the amount of traditional and on-line advertising will cross in 2009. So the trend is apparent, but in the meantime, most consumers are using both models to make their buying decisions and therefore it requires you to reach them in both mediums.

Many agents continue to use a 1990′s model of marketing. This has caused their
marketing to become less and less effective. More time and money is being spent in on-line advertising – up to 52% of the marketing budget. Signs, riders, marketing tools like voice response systems and “talking house” technology are becoming more and more important as consumers are looking for ways to get information without having to actually talk to an agent.

2006 was the largest newspaper circulation drop in 15 years. The newspapers are hurting. Advertisers are moving with the trend. Carat USA estimates that expenditures on newspaper ads are about $600 per household versus $152 on internet advertising. Lead generating options have added even more cost to getting the sale. It only makes sense that companies will continue to make the push to on-line just from a cost perspective. However, consumers pay more attention to magazine ads than they do internet banner ads. The bottom line is how do I reach my target market? Where are they, what do they want, and how can I deliver it to them in the most cost effective manner.

In one year, the fixation for on-line video and social networking created the most changes and opened up more new opportunities to the marketing world than anything else since the birth of the internet. As broadband abilities continue to grow, so will on-line video, which will lead to more content-on-demand opportunities. Change is accelerating, and new innovations are changing traditional rules overnight.

One must adapt to the needs and wants of the specific target market that they like and want to do business with. Whether that is tech savvy vs. the traditional buyer, or baby boomers vs. Gen X or Y, you will need to use the tools, techniques and strategies for that target market.

Trend #4 – Developing teams that lead to high productivity

This used to be a business you could do all by yourself. With today’s demanding clients, and regulation, you need help. It has become very important to build an extended team of title, inspection, lenders, contracting professionals you trust and have a relationship with. There are many team models, but it is clear that if you want to have high production, you will need an assistant.

There are many new real estate business models available and agents are changing
companies faster than ever. Those models that incorporate a strong on-line presence, are consumer-driven, and offer a wide variety of services at a lower cost stand the best chance to corner a portion of the market. Existing brokers clinging to old business models will struggle in the future and find their market share eroding. Brokers are still searching for ways to keep their talent and improve their productivity.

Trend #5 – Demographics and Geographics—A new generation comes into home
buying age, the baby boomers choose to move into warmer territory, growth in
minority buyers.

Gen X’s (Echo Boomers) are 73 million strong, represent 23% of the labor force, are more than 50% larger than the Gen Y population, and appear to be more confident and optimistic. Their reality about technology is completely different than the baby boomers. They tend to have good business and organizational skills, are highly motivated to make a lot of money, tend to lack people skills, and have a lower tolerance to the older generation.

Gen Y’s are turning 30-40 and represent 30% of the work force. They grew up with the internet, it plays a part in their day-to-day life, and they expect newer approaches and processes that are integrated into that technology. They are buying younger, and want something different, just like every other generation. Marriage is not a requirement in home buying. In 2005, 40% of the buyers were first-time buyers, 50% of those were between 25 and 34. 38% of all homebuyers were below 35. Gen X and Y “want it now” more than any other generation. They are a lot more comfortable with change and will adapt to the newest, latest-greatest, “coolest” thing. If boomers don’t stay up, Gen Xs and Ys will pass them by.

There are 78 million baby boomers, and they represent 42% of all homeowners. They own 50% of the vacation homes and other investment property. 59% of younger boomers (41-49) and 50% of the older boomers (50-59) plan to purchase new homes for retirement. They want an active lifestyle, quality time with their loved ones, and a sense of community. They like to live within a three hour driving distance of their grandchildren (notice that’s not children). The most desired home features are internet, laundry room, and more than one bedroom. They want to live in warm weather which has them migrating to Florida, Arizona, North Carolina, California and Texas.

There is no doubt these generations will have an overall impact on the industry as a
whole. The more we know about our clients the more effective we will be in meeting
their needs, understanding them, and using our marketing dollars wisely.

Minorities are projected to be 71% of the household growth over the next decade.
According to Fannie Mae and HUD, minorities could account for up to 60% of all first-time home buyers over the next 5 to 10 years. These statistics can not nor should not be ignored. Accommodating the different challenges faced by minorities in regards to qualifying, mortgages, education, and language barriers will open up new opportunities to those willing to provide the help.

The US Census Bureau predicts that half (50%) of the population will be non-Caucasian by the year 2050. In certain areas of the country, a broker, title company or lender would be foolish not to have a Spanish speaking rep or agent. Non-English speaking internet users now outnumber English speaking ones. How are the agents or brokers websites reflecting this change?

The number of immigrants into the US has grown from 2.5 million in the 50′s to around 11 million in the last few years. Immigrants are big proponents of home ownership. Therefore, they would make a great target market.

Trend #6 – Technology and the internet could change the entire industry

Internet buyers vs. traditional buyers – 77% of buyers are using the internet. According to C.A.R they use the internet:

• 86% to find a specific agent
• 75% to identify a specific home they want their agent to show them
• 66% for financing information
• 62% neighborhood information
• 45% to find a real estate firm
• 70% expect 60 min. response time
• 21% want an instant response
• Twice as many prefer email to telephone

Google lists real estate as its top search category-2 billion searches a year. Web 2.0
technology is moving the internet from just information to include collaboration. The
internet is moving to a very interactive state. Static websites won’t do it for much longer. People want interactivity, and almost expect it.

Just a year ago some agents were still asking if they should have a website. Now it’s a question of how many? Consumers want content without being “sold”. Provide free
content of interest to them and they will love you.

Consumers are demanding more and more information. Will the MLS survive as it is
today? Will it become a national system? Only time will tell. To give the consumers what they want, they need access nationally. I have an issue with allows agents to sell
properties in areas they are not familiar. Challenges are in the wings. How long will it be before the consumer can list their home, do all their marketing on-line, and buyers are only looking on-line? I think it’s sooner than we would predict.

Mechanization and automation of the transaction process is a huge plus for the real estate industry.

New models, approaches, and methods are all being infused into an industry with a
history of disliking change. Each person will have to make a decision of what they want to embrace, how it will impact their business, and what benefits it will provide their clients.

Regardless of technology, response time is everything. If you don’t get back to them
quick, they’re gone. Responsiveness was the number one factor wanted by both buyers and sellers. They want to deal with an expert professional who takes care of the details, communicates on a regular basis, keeps them informed and is responsive to their needs. Technologies are making this possible through the use of email on cell phones/pda’s, and sending text mail.

Trend #7 – A shift in the market from buyers and sellers, dilution of market by too many agents, higher interest rates result in more foreclosures, and the higher cost of housing resulting in higher debt level and affordability issues.

The sellers have finally gotten the reality of what happens when the market is flooded
with homes and the buyers have the opportunity to be pickier. The buyers are settling down to realize that the “big deal” just isn’t out there. The real estate agent understands that the “fast money” isn’t there any more, yet, there were more Realtors® last year then ever.

Because most of the agents had no real, consistent marketing plans, many have found themselves with little business. With many agents only doing a few deals a year, they were not able or didn’t stay up on the latest market trends and were not providing their clients with the best service or knowledge. This has had an impact on the buyers and sellers looking for and demanding better service and greater levels of knowledge.

In areas where there is still a large influx of buyers and job growth, appreciation will still tend to go up, regardless of what happens to interest rates.

NAR published its report of a recovering market in the last quarter of 2006:

• Builders have been cutting production
• New home sales have bottomed out
• Home price declines are attracting buyers
• We are moving towards a sustainable sales pace
• Existing/new home inventories are falling
• Mortgage applications are stabilizing
• Mortgage rates have begun to decline
• Stabilizing pending home sales
• The months supply has topped out

Some economists predict that the downturn that started in third quarter of 2006 will last 12 to 24 months. However, different economists, different opinions. Just keep your eye on the market statistics and you’ll continue to have a feel for the market.

In 2006, we expect to see an 8% growth in the number of Realtors and yet transactions declined by 8%. This has the Realtors scrambling for business and in some areas there can be 20 agents vying for business for one house sale. This requires the agents to work harder, be better positioned, and it makes it more important than ever to figure out how to differentiate yourself in the market. Unfortunately, some agents don’t get it, and because of the amount of home appreciation, too many agents are still able to squeak by and are lured by the “value of the commission” of just one home sale.

The market has had the third year in a row of record sales, the opportunities are there if you’re looking for them. By having great market knowledge and having effective marketing you can clearly stand out from the rest.

The mortgage industry has continued to look for creative ways to get more buyers into the homes of their dreams. However, with the continual increase of the medium home prices, many consumers are trying to figure out how to get into a house. More and more people are forced into renting. For many ARMS were the answer. As interest rates have increased, those ARM users are finding themselves unable to make their mortgage payments and according to ReaaltyTrac’s U.S. Foreclosure Market Report they have increased by 25% in 2006 over 2005 with Colorado, Georgia and Texas posting the highest quarterly foreclosure rates.

When investors started to see the interest rise, inventories increase, and a saturation of investors in certain areas, the savvy investor pulled future investments from real estate back into the stock market. The result was a surge in the stock market.

There are many opportunities in this market for someone who keeps up on the market trends, finds creative ways to help their clients that won’t hurt them in the future, and does consistent, targeted marketing. Stay focused on what’s possible in the market and you will always succeed. Responsiveness, market knowledge, sales skills, and likeability are more important now than ever.

In closing

The more educated the consumers becomes, the more power they process, and the more demanding they are becoming.

The industry has experienced these challenges before, but combined with the change in technology and changing consumer demands, we can expect to see some changes in the industry as a whole. Because of technology, the internet, opening up of the MLS, and corporate America’s involvement, we’re about to see a shift effecting agent’s skills sets and composition. Agents that are willing to make changes, get educated, and acquire the necessary skills will be the winners.

The key to keeping up is to embrace change because it is going to happen whether you like it or not. Stay on top of what is impacting this market, be willing to adapt new strategies, take advantage of the technologies that will simplify your business, and think about how you can do business with your clients for life.

How are you responding to these changes? What actions do you need to take right now to take advantage of them?
by Debra Pestrak

If you are one of those many agents or brokers who don’t really believe that the Internet is “the way” in real estate today, perhaps the following data compiled and presented by Leslie Appleton-Young, Chief Economist and Vice President of the California Association of Realtors® (CAR®) in her analysis of the Real Estate Market in California for 2006 will get your attention.

If you believe that the Internet is the single most important factor in your future success, here’s your continuing proof that you are correct. Ms. Appleton-Young and CAR® have compiled data of such import and enlightenment that I felt some of it should be shared with you. Pages 62 – 82 of the study compare some distinctions between Internet vs. Traditional buyers and the findings are powerful. These charts show the undeniable trends and the clear preferences consumers have for the Internet approach to buying a home: since the year 2000, virtually every preference that used to favor the traditional approach has been turned upside down and the Internet approach is now overwhelmingly favored. This report is unequivocal evidence that if you are not on the Internet bandwagon and if you can’t be found by people searching for homes on the Internet, you are completely “missing the boat” in the real estate business.

Here are just a few of the report’s findings:

• 92% of Internet buyers found their agent on a web site; 63% found them through an Internet search engine; 0% of Internet buyers found their agent through brochures, flyers, yard signs or mailers to their home (does this tell you to spend more on Internet marketing and less on print?);
• In 2000, 28% of people said that they used the Internet as an important part of their home-buying and selection process. In 2006, 70% said they did;
• 86% of home buyers started using the Internet as part of their process BEFORE they started looking for a specific home;the other 14% did after they started looking, but BEFORE they contacted a real estate agent; that means that 100% of buyers surveyed started looking at homes first, agents second. When you combine that finding with the already existing one that fully 81% of Internet buyers stay with the first real estate agent they choose to contact, you can see a powerful case for being able to have consumers find you, first;
• Internet buyers spent an average of 4.8 weeks doing research before contacting an agent; traditional buyers only 1.7 weeks. That means an Internet buyer is better prepared and twice+ as less likely to waste your time;
• Internet buyers bought a home on average after spending 2.2 weeks looking for a home with an agent; traditional buyers spent an average of 7.1 weeks; How high would your productivity be if you could spend 2/3 of the time you now spend previewing with clients and could dedicate it to selling and marketing, instead?
• Internet buyers previewed an average of 6.7 homes with their agent (they had already eliminated ones they did not wish to see), traditional buyers previewed 15.4 homes; an average of just under nine fewer wasted showings per customer;
• Only 3% of all Internet connections available at the primary computer used for the home-buying process were dial-up: Internet home buyers and searchers are not sticking with dial-up, just as they are not sticking with traditional methods;
• The approximate distance between previous residence and new residence for traditional buyers was 25 miles; for Internet buyers, it was 242 miles (you can sell anywhere compared to traditional ways);
• Number of agents an internet buyer interviewed, on the median: 1; Traditional buyers? 3. (Why would you want fewer auditions and more certain retentions?)
• 69% of Internet buyers said response time was extremely important.83% of those buyers chose email as their favored communication method with their agent. 0% chose “in person.” (The Internet is the new “office visit.”)
• Internet buyers were more satisfied with their agents: 4.3 to 3.3 for traditional buyers, on a scale of 5 where 5 is “surpassed expectations.”
• 35% of traditional agents listed “faster response time from my agent” as the one thing they would change, if they could, about their experience; Internet buyers? 0%!
• Internet buyers were far more satisfied in every important researched category of satisfaction than traditional buyers were; when asked the number one reason for satisfaction with their agent, 91% of Internet buyers said that satisfaction was because their agent “was always quick to respond.” Traditional buyers? Their number one reason was “worked hard on my behalf”, chosen by 62% of them, leading us to conclude that traditional buyers did not find their agents “quick to respond.”

And, ladies and gentlemen (a little drum roll, here, please), 97% of Internet buyers said they would use the same agent again. Traditional buyers? 50%. (Twice as likely to be satisfied and twice as likely to give a referral, wouldn’t you think?)

I’m not an economist, (I don’t even play one on TV), but it seems to me that these data show clearly that:

1. Agents who sell via the Internet do not get as bogged down in unproductive chauffeuring to preview homes as traditional agents do;
2. Agents who utilize online marketing and have Internet buyers are more liked, more highly regarded, more likely to have a repeat sale with the client,
3. Agents selling to Internet buyers are likely to work only 2.2 weeks with a buyer before selling a property (vs. 7.1 weeks traditionally);
4. Agents committed to online marketing may be able to expand their market area to an average 242 mile radius of their location and remain effective due to online communication; people find you on the Internet, call you or email you, and use you to help them find a home in an area they may not know.
5. The money you may spend on brochures, ads, newspaper ads, and the like should be reconsidered and placed into Internet Marketing.

So, unless you are in a state of denial about the Internet’s importance to real estate transactions, you need to do several things in your planning for this year, at minimum, if you want to be on the right side of these statistics.

1. You need to take most of the money you are spending on newspaper ads, brochures, glossy marketing pieces, etc., and invest it in your Online Marketing. Chances are good that you cannot possibly wisely spend all those dollars online; consider those savings as your bonus this year. It will be tough not seeing your comforting listings in the paper, but think of all the money you’ll be saving! (And as more fuel for that fire, consider this: Ms. Appleton-Young’s data also show that over 70% of people 65 and older read a daily newspaper, but only 35% of 24 year olds do. PRINT IS DEAD TO THIS GENERATION OF HOMEBUYERS!)
2. You need your own website showing your properties and you. You can get a very good one free. What are you waiting for?
3. Just having a website or a page on your franchise site won’t cut it; you must be able to be found by people searching for homes in your considerably larger e-neighborhood. The Internet is a really big place and chances are that you and your site may be lost in its hugeness.
4. You must be permanently committed to “Thinking Internet.” I have heard many agents say “I don’t get that involved with Online Marketing; I’ve been successful the traditional way for 15 years.” I offer those of you saying that now two things: my sincere congratulations on your past success and my sincere empathy for the frustration you will suffer as the curve gets further out in front of you. The report told us that in 2006, 63% of Internet buyers (who comprise 70-85% of all buyers today) find their agent on the Internet. We believe that within the next two years, this number will approach 90%. While this CAR® study does not report on every State in the Union, it does report on what is happening in America’s biggest and most influential real estate market. No matter where you are, these data and trends are coming at you. You must get on board or you will be literally run over and left behind. Internet selling is the way, and within our lifetimes, the statistics will continue to favor online marketing of real estate in even greater proportions.

by Michael E Parker