One of the best ways to build a lasting real estate business is by starting a geographical farm using hyper local marketing.
Brilliant marketing is consistent across both time and medium. Study after study has proven conclusively that the more people are exposed to your marketing the more likely they will be to use your service. What that means is you need consistency and time, in order for your marketing to take affect.
First, when you’re starting a geographical farm using hyper local marketing, you’ve got to go over the basics:
- 80% of consumers say they prefer to work with a well-known professional service provider, and when asked why, the major reason is cited, “I’m familiar with them.” Most importantly, the value of repetition is cumulative, which means that far too often marketing campaigns are pulled or replaced just as they are beginning to work.
- Effective frequency is at least 4 times per month. 3 or fewer exposures a month yields no change in consumer purchasing. Knowing this, when starting your geographical farm using hyper local marketing, you will want to give the process 9-12 months.
- The impact of repetition goes beyond awareness to the very way people feel about you and the service you provide. Research proves that a positive feeling towards doing business with you is directly related to the number of advertising exposures. Closely-spaced marketing repetition increases sales and promotes value.
- You must operate as a business executive. Develop a detailed, written marketing plan using these principals then simply follow the plan. Remember, if it’s not in writing it’s really not a plan. Trying to keep it all in your head is the fastest way to burn out. You can create a free high powered business plan on my website www.agentsecretsauce.com.
Farming is the secret to success and there is incredible opportunity right now for a couple reasons….
- Agents can be lazy! Most real estate agents will not do anything at all, or if they do, it’s inconsistent.
- After CFPB cracked down, title companies stopped paying for marketing materials, such as postcards and newsletters and many agents just won’t invest their own money. I know, right?
- The average agent will only send 3 pieces of marketing materials to their target farm, and then pull the plug on the campaign because they don’t have instant gratification.
Marketing consistently and frequently will position YOU as the leader in the real estate community!
CAUTION: This is a slow build. This is a commitment. Marketers know this, but most real estate agents don’t. Now, I’m not saying that you shouldn’t keep metrics on your performance and track the results. You WILL NOT get results right away and that’s ok! See this as a creation process where you have to daily build the foundation.
Choosing a geographical farm:
- Research: In order to determine where you’re going to farm, you need to do some research on MLS by pulling up the prospective neighborhood and analyzing the data.
- Quantify: Determine the number of homes you can handle. I recommend starting with approximately 500 homes. If you’re able to commit to a larger number, great!
- Choose a neighborhood close to the office. We’ve got a rocking building and an awesome sign…part of getting their mindshare is already set in motion.
- Turnover: In order for a farm to be effective, there needs to be turnover. But, if there’s low turnover, it doesn’t mean you should entirely throw out the neighborhood, for instance what if turnover has been low but the demographic is primarily baby boomers looking to downsize. There could be underlying factors that will play an important role in future turnover, so anticipate those as well. As a guide, you’re looking for turnover in the 6% or 7% range. Here’s the calculation:
(Total houses sold in the past 12 months) / (Total # of houses in the farm) x 100 = turnover rate.
For example: 10 houses sold / 150 homes in the farm x 100 = 6.7
- Affordability: Working in high end neighborhoods is sexy for sure, but there’s a real benefit to choosing a neighborhood hood where prices are affordable. If the prices are affordable the homes will sell faster.
- Market saturation: Is there a particular agent or company that is locally dominating the area. Or, is this area being worked already by a JK agent. If so, your efforts may be better utilized in another neighborhood.
You’ll make a fortune farming if you use a consistent approach and strategies when you farm. If you’re interested in receiving a free copy of my 10 Point Plan of Attack when starting a geographical farm using hyper local marketing, that made me over $200,000, please fill out the contact form below.
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