The business of selling to the real estate business.

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

Summergrove Homes for SaleAccording to the Bureau of Labor Statistics, there were about 466,100 real estate agents and brokers nationwide in 2010. And the average income for both categories combined was $42,680 per year.

I often wonder how many people there are working in ancillary industries that provide support and infrastructure for real estate brokers and agents.

Based on the number of phone calls that I get every day, there are apparently quite a few of them. But considering the available “piece of the pie” you have to wonder how many of these endeavors survive for more than a year or two.

Lead hawkers, website pushers, and zip code sellers all compete for what available money there is to be harvested. For most real estate brokers, purchasing any of these products or services is a leap of faith because we can’t validate the expense until a significant amount of time has passed.

The perception that agents and brokers have huge amounts of marketing resources is typically false. When I tell salespeople that I create my advertising budget a year in advance, they try to use “objection handling” on me.

Here’s a tip to all of those that try to hard sell me: If your product or service is good, I will already know about it.

And I will be calling YOU to get it!

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Topic:
Real Estate Sales and Marketing
Groups:
"Whacked"!!!
Diary of a Realtor
The Lounge at Active Rain
Realtors®
BananaTude
Tags:
selling to real estate agents
selling to real estate brokers

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Rainmaker
292,967
John Marshall - FORE!
Specializing in Golf Course Properties
John Marshall

Years ago at my first ever real estate seminar ( I think I went to five the first month) I realized that either agents are the most gullible people in the world or they have plenty of money to burn, I could not believe the pitches and the rcae to sign up for the latest gimmick to take them to the top.

I thought if I ever decided that I could not make a go of this career, I would just find something to sell to these suckers. Fortunately I am still active and fending off the leeches.

May 15, 2012 11:16 AM
Rainmaker
1,346,760
Andrew Mooers
Northern Maine Real Estate-Aroostook County Broker
MOOERS REALTY

With the Internet, a creative spirit and SEO clever blogging, video and site linkage through out the social media ranks, well, a person does have unlimited marketing resources with an army of one now adays!

May 15, 2012 12:34 PM
Rainer
10,097
Terry Katz

Very interesting post Richard.  Previously as a residential developer as well as licensed sales agent, I was the one receiving the calls.  I encountered the hard sells on occassion and did experience some callers who couldn't accept no for an answer.  They got hung up on.  The others I tried to be polite with 'I'm really not interested but appreciate your reaching out to me".  If they offered to send information I typically agreed but let them know that I would contact them if I had any interest.

 I am now on the other side of the phone doing business development for my title insurance agency and that involves the unpleasant 'cold-call.'  I tend to focus on mortgage brokers with these calls but I do call real estate agents as well.  And while my product/service does not cost the agent financially I am still 'selling'.  I do not hard sell, rather I ask two simple questions "who are you currently using for your title insurance and what, if any, challenges are you experiencing?"  If I'm told that they are happy with their current provider I don't push but if the call 'feels' right I will ask if I can send an email with my contact information and some additional information on my company in the event they do experience a challenge down the road. 

So my questions:

Do you think this approach works for title insurance?

Do you have anysuggestions/recommendations on how to acquire new title business from agents be it through cold calling, networking or any other way?

May 15, 2012 01:01 PM
Ambassador
1,645,690
Richard Weisser
Richard Weisser Coweta Newnan Homes for Sale
Better Homes and Gardens Real Estate Metro Brokers

@Terry K...

IMHO the best way is to become a partner with the local Board of Realtors and attend all of their meetings and functions. It's the fastest and best way to get in front of as many agents, brokers, and mortgage brokers as quickly as possible!

May 15, 2012 03:49 PM
Rainmaker
1,734,112
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.
WHISPERING PINES REALTY

I get so many calls for placement ono the internet and I am already about as good as i can get without spending the money they want.

May 15, 2012 03:57 PM
Rainmaker
393,772
Peggy James
REALTOR servicing Lake Ridge Virginia Area
Twins Selling Real Estate Team

Richard, I am left wondering the same thing. It is amazing the number of calls I get as well. I agree with you one hundred percent. If these companies would spend the time and effort of getting in front of us, they may have a better shot. Bring us facts, hard #, and evidence of success and then we'll talk.

May 15, 2012 04:13 PM
Rainer
231,586
Donald Reich
Prudential Centennial

Richard, these guys make their living by selling. As a Realtor, you should be able to relate to that. So give them a break!

May 15, 2012 04:43 PM
Rainmaker
420,591
Leslie Ebersole
REALTOR - Chicagonulls Western Suburbs
Baird&Warner Fox Valley

NAR says it has 995,000 members and that's half of all licensed real estate agents, putting the number closer to 2 million.

 

May 15, 2012 06:41 PM
Rainmaker
278,829
Dianne Goode
Realtor/Broker
Raleigh Cary Realty

In terms of cost and education required, real estate is an easy profession to get into -- but a hard one to stay in.  I have heard that only 6% of new agents will succeed over the long haul.  If that's true, or even close to true, think of the thousands of new agents who get a license -- try to launch their careers with sure-fire offers -- and then fizzle out in a few months or years.

That's where the telemarketing money is, selling hope to the newbies.  

May 15, 2012 06:57 PM
Ambassador
754,012
Brenda Mullen
Your San Antonio TX Real Estate Agent!!
RE/MAX Access

I am so with you on this one!  We have to be the most "sold to" industry that exists.  It is amazing how many people have products, tricks, seo, websites, coaching, the magic bullet etc.  Selling to Realtors® is a way to make huge money I am sure lol :)!

May 15, 2012 07:17 PM
Rainmaker
1,033,780
Joan Whitebook
Consumer Focused Real Estate Services
BHG The Masiello Group

This has been a very challenging business.  It is not for everyone .. I think things may be getting back to a balanced market.  Time will tell.

May 15, 2012 07:21 PM
Ambassador
1,645,690
Richard Weisser
Richard Weisser Coweta Newnan Homes for Sale
Better Homes and Gardens Real Estate Metro Brokers

NAR states that the average income for its members was only $34,900 on 2011... so that still goes to the fact that there isn't a lot of money there to divvy up!

May 15, 2012 08:32 PM
Ambassador
1,550,626
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

Richard - I agree with you.  There are so many people who call so often.

May 15, 2012 11:28 PM
Ambassador
1,227,260
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

Agreed. I had one call last week from a guy who said he found me on AR, said he was a new agent and needed advice. He asked me if I had ever been coached and who I would recommend. 

When I replied he launched into a sales pitch.

NOT COOL.

May 16, 2012 06:02 AM
Anonymous #45
Anonymous
Anonymous

I agree, Richard - if these services were so great we really would be calling them...

May 16, 2012 10:01 AM
Rainmaker
937,894
Adrian Willanger
Profit from my two decades of experience
206 909-7536 TheHomeFunnel.com

Amen Richard!It dosen't take long for a good product to get noticed while all the other are fighting it out for market share. Excellent.

May 16, 2012 10:22 AM
Rainmaker
1,052,379
Ginny Gorman
Homes for Sale in North Kingstown RI and beyond
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate

Richard, i love the phrase if your product was that good I would already know about it ...kudos to you...your blogging and web site makes the difference obviously for you!

May 17, 2012 04:24 AM
Ambassador
892,869
Bob Crane
Forestland Experts! 715-204-9663
Woodland Management Service

Thanks for sharing this Richard, I generally feel sorry for them trying to work hard to sell something that few people want, as long as they don't try to strong arm me I am always polite and wish them luck in finding someone who can use their services.

May 17, 2012 03:25 PM
Rainmaker
90,451
Chuck Ward Local Video Marketing
SMS Marketing, Google Plus Local Pages
Florida Mobile Fusion Mobile, Marketing, Local SEO

Maybe there are some services that are great that you have not heard about yet.

 

I dont think realty industry specialists (that includes all of them) can afford to sit back and wave off something that they are afraid to try, dont have the time and so on.

FOr instance, who knows how to get unlimited virtual tours that stay at the top of youtube for a flat fee per month?

Who knows how to create mobile optimized websites with panaramic pictures for $60 per year.

I love it when a realtor complains that he or she does NOT have enough business, yet wont put the time, energy and effort in trying something new and changing his or her marketing budget from one place that is not working to another place that is working

 

May 18, 2012 01:28 PM
Rainmaker
233,579
David Grbich
Orange County Real Estate - 949-500-0484
Ventana Coastal Properties - www.FindCARealEstate.com

I also get many calls offering products that are sure to grow my business. I often ask vendors to guarantee their service and I will try it but few take me up on the offer.

May 20, 2012 08:23 PM
Anonymous
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