Act Now to Protect Your Market Share!
There are two ways agents have approached the current crisis:
Approach 1: Put the brakes on all advertising due to uncertainty.
Approach 2: Plan for the future, pivot strategy and increase advertising.
Polar opposite approaches. Those with the second approach have already, or are about to, launch brand new campaigns to increase their listings.
If you’re type 1, sorry to be the bearer of bad news but there’s a good chance your competitor is about to start chomping into your market share.
If you’re on the fence about investing in your advertising because you’re unsure about what the market will do next, let me convince you why you can be confident about backing yourself.
You see advertising is part art, part science. While it can be fun and creative, it’s also all about the numbers – calculating return on investment.
People will always need to buy and sell houses. The only thing that changes over time are the number of “fish in the pond” or houses for sale.
Crisis or no crisis, the agents who are out there continuing to “fish” will be the ones who get the listings.
In a fast moving market when you’ve got high turnover and lots of people selling, you might achieve three sales a month (36 a year) by advertising your services to only 2000 households in a farm area and/or a database.
In a much slower market, you can still list and sell three a month but you need to increase the number of homeowners in your catchment to say 3000.
So yes, it will cost more and the return on investment will drop slightly, but the cost of not doing it could be missing out on 10-12 commissions, having your income drop by $100,000 plus.
Does saving a few thousand dollars on additional advertising make sense when you also lose the opportunity to earn more than $100,000?
What’s your income goal for 2020?
Have you done the maths to figure out how many homeowners you need to target to achieve that?
If you haven’t already, download your free e-book, Are You Making the #1 Real Estate Marketing Mistake?
If you’d like to explore partnering with us to do your real estate marketing, book a 15 minute Marketing Review so we can determine if we’re a good fit to work together, and to check that your exclusive area is available.