Bonzai Real Estate Blog

Well, this will be another day of showings. Before I head out I want to write a little about the ongoing controversy with Trulia and links. This is one area where I will begin educating myself so that I can converse intelligently about the topic of links.

One question I have had and will raise again is if any agents are selling homes as a direct result of homes marketed through listing aggregators.

It's now clear that the primary purpose of Trulia, Zillow and the rest is nothing more than drawing traffic to sell ads. That's fine, but what is the primary purpose of agents who allow their listings to be shown on these sites?

To sell homes. 

Is it working? I don't see any evidence that this marketing strategy is producing any verifiable results, so the question is -- Why use them, if all our particiation is doing is helping them place higher in search engine results?

It makes no sense to help them draw traffic if that traffic doesn't help agents sell homes.

If this marketing strategy was working -- if homes were being sold as a result of marketing them on listing aggregator sites -- then that would be a different story, but if it's not working as a marketing strategy, the strategy is useless to agents

AND, they just get in the way of direct access to buyers.

Nothing new here --  but it becomes stranger and stranger as time goes on -- why market through them?

This morning, for the first time I can remember, I placed on the first page for City/state/real estate and city/state/homes for sale, and was number one for city/homes for sale.

The way it bounces, things will change by the time I get back this afternoon, but it looked good for a few minutes.

Busy day showing new construction to a California relocation. I wish everyone a good day and I will post something about blackberries or Nantucket sunsets this afternoon.

As I read different parts of the online conversation regarding real estate it strikes me that something great is happening underneath the back and forth that's part of a greater change. Sean Purcell wrote a great article at Bloodhound that made me think about how imortant it is for the new professional to be more than a "salesperson" in order to be an excellent salesperson. True, at a basic level, real estate is about sales, and unless one suffers from delusions of grandeur, it pays not to inflate professional acts into something over-glorified, but as individuals dealing with individuals in the process of buying and selling real estate, the application of our skills is dependent on our minds and how to artfully get from A to Z.

I believe the process is less dependent on formulaic steps that need to be memorized and mechanically practiced and more dependent on the adaptive process each sitaution calls for. "How-to" procedures are effective for someone who is beginning in order to understand basics, but basics are just that, the raw beginning. In order to be a professional who is daily in the process of mastering the skills of sales and service provision, a basic foundation is merely the starting point-- if an agent stops at the basics, there are no unique structure and systems built to distinguish one agent from another and it creates a situation where all agents are at risk of being replaced with technology.

The new professional is a value producer, if the agent is not producing value then the market will squeeze the agent out as efficiency improves. In order to be a value producer an agent must go far beyond the basics to innovatively and actively become an integral part of the real estate buying and selling process, and the agent must have such a broad understanding of the process that he/she can communicate this to consumers and actually deliver it in style. If technology is smarter than the agent, then the agent is lost. However, if an agent understands technology and how humans are affected by it, use it, need it or perhaps even misguided by it, then the agent can creatively use technology rather than be pushed out by it.

It seems people will use technology over people if it's less expensive and easier, and service has no value. If a homebuyer can access listings, gather information and buy real estate directly with no value of service in the middle, then agents are in trouble. This has been a promise that so far hasn't materialized but technology is improving all the time. I hear agents say that service will always be needed because many people don't have the time, knowledge, skills or the willingness to utilize technology to buy and sell directly -- but more people will benefit and use it if technology is improved and presented as easy and efficient. However, as technology in real esate buying and selling stands right now, what is presented is just the basics for buyers and sellers. There is far more involved in buying and selling real estate than access to listings and information and the ability to buy directly.

So, you have agents who possess the basic skills of their profession and consumers who have access to the basic technology for gathering information. Where the value lies in beyond the basics of agent skills and consumer use of technology -- it's in the art of a successful and profitable transaction. Artfulness is valuable -- people pay money for things of value because they receive some kind of reward from the value. A beautiful painting can offer a spiritual, intellectual or emotional reward, a well written book can have intellectual, emotional and spiritual rewards, and artful builder can offer the reward of creating a home that goes beyond shelter to  spiritual, emotional and intellectual appreciation and enjoyment. The value in all these creations is the artfulness, the uniqueness, the quality.

What's missing in raw technology is artfulness. So far, artfulness is present only when the human touch is present, other than what's already present in nature and you believe it's the handiwork of a Creator. Otherwise, artfulness is associated with human creations. The new professional who uses technology artfully to create successful and profitable transactions is providing value. It's my belief, and this is where Sean's article inspired me to write about this, that agents need to aspire to the Renaissance ideal in order to be greater than technology. There needs to be an understanding of psychology in it's broad meaning, an understanding of economics, of transparency, of service, of technology, of construction basics, of communication (written and verbal), of politics (especially at the local and state level), of design and styles, of trends, of financing, and most of all themselves and their movitations.

An intelligent, knowledgeable, artful agent will be smarter than technology and know how to manipulate it to the client's advantage. An artful agent will know how to adapt to each  situation rather than be bound by basic steps that don't always fit unique situations. In this age of personalization it takes something extra to impress sophisticated consumers who are designing their lifestyles. In spite of the news that citizens of the US are suffering financially, there is a lot of wealth in this country and as the baby boomers begin to retire or buy second homes, they are discerning, knowledgable and demanding. In order to communicate to these consumers, a well-rounded education (even if it's auto-didactic) is necessary to present the unique value that will transcend the basics of realtor skills and give purpose and context to the consumers basic use of technology.

The personal touch is still critical, but the touch must be special and excellent in order to be seen as valuable. Being seen as a trusted professional who is not only an area expert, but a person to be intellectually reckoned with will raise the perception of agents to a higher level that consumers can respect and rely on. This seems high-falutin and as if I'm describing an elite level of service, and I am suggesting the level of service must be raised. When I interview a lawyer for legal work I want the one who seems smartest and well-rounded. There is something comforting knowing you are working with a person who has an active mind and can converse intelligently on different topics -- it's a display of artful fulfillment of a job, a confidence is created that this person knows things and will actively apply their mind to the solution of a problem rather than apply steps and formulas.

It's the difference between a bureaucrat and an entrpreneur, between a clerk and a problem solver, between an order taker and an innovator. And if the person I'm dealing with is confident in their knowledge and well-rounded accomplishmnets and it comes out in their personality as self-assurance based on something real and earned, it instills confidence in me and allows me to recognize the value.

Someone who has an active mind and diverse interests seems better equipped to make connections that create that adaptive approach to problem solving and service provision -- you know they are thinking, connecting, working toward the best solution. This, to me, is what consumers want, someone who can go beyond the basics to utilize technology and knowledge to create the best transaction possible -- this is what consumers will pay for.

I was on my way to a showing appointment this morning when some young lady pulled out in front of me and tore my bumper up, ruined my right tire and flattened the back one. No one was hurt. I had to get it towed, then get a rental, meet the appointment late, then two more appointments, deliver an offer and make a meeting I attend on Monday's.

I'm bushed. Too tired to argue.

Tomorrow, tomorrow.....

"Established in 1965, Benetton is present in 120 countries around the world. It presently has global sales in excess of $2 Billion dollars annually. Yet many in the mainstream find their advertising and marketing strategies downright offensive.

The aim of United Colors of Benetton corporate communication is to create the image of a global enterprise that is modern and projects towards the future and uses distinct imagery and messaging to promote its principal and most important characteristic: uniqueness."

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I agree that "uniqueness" is a goal, but only if understood in the context of service or product offering. To be uniquely offensive in a field of unoffensive businesses is not necessarily a good thing. To be uniquely bad is, of course, not desirable. To be uniquely visible, but provide inferior services and products will eventually cause failure -- more people see how inferior you are, but you gain nothing.

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“If your brand is clearly defined enough to have the power to attract enemies, it also has the power to attract raving fans. And the raving fans of your brand are the ones who return again and again. They’re the ones who will tell their friends about you. They’re the ones who will wear your logo. They’re the ones that almost enjoy the annoyance of your brand-haters and will keep coming back for more.”

“So don’t fear the hate. Embrace it. Maybe in your next brainstorming meeting, don’t ask how you can appeal to X. Ask how you can annoy the hell out of Y.” …………………Rick Nobles president of Two West Inc

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You don't necessarily have the power to attract raving fans by having the power to attract enemies. You can just attract enemies. The premise is flawed and the rest is non sequitor.

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In marketing conventional wisdom is not always the chosen path. The delivery of a message and its ability to reach the intended audience need not be communicated the same way as your competitors. In fact sometimes it makes sense to completely differentiate yourself. If most of your competitors are turning left, then turn right. If those products or services you seek to overcome are painting there portrait in white, paint yours in black.

There are, as we have been told, two sides to every story and in marketing this could not be more true.

Are you afraid to offend someone with what you marketing materials? Do you shy away from making tough statements in your marketing messages on your collateral media pieces or on your blog or website? Have you received some angry comments or emails from people vehemently opposing or denouncing what you have said? Have you heard from some people that they will absolutely not buy from you or will not use your service or perhaps will not read your blog?

If so, then instead of being upset, you should be smiling like the proverbial cat that just ate the canary. Why? Because by having an audience that voices displeasure with you means that you are succeeding in branding your business and you are expertly applying the principles of Contrarian Marketing.

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 Having an audience that voices displesasure with you is a sign of trouble in real estate. I don't know how to address this statement.

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Obviously one has to have a well thought out plan and commitment to execute a Contrarian Marketing Plan to fruition. It is definitely not for everyone and in real estate it seems to be even less likely to be implemented as a part of an overall campaign.

While all marketing and advertising is designed to evoke some measurable emotion or reaction from your target demo, most in real estate opt for what they erroneously view as the safe way out. Most real estate marketers rely and stake the success of their “businesses” on trying to deliver positive messages to a target they hope will like them and subsequently buy from them. Positive messaging surely works and is a marketing mainstay.

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Yes, this would seem to be the best way to market a real estate company. But not just "like" you, also to see that you are an expert and deliver good services.

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However, Contrarian Marketing also works very well. When you are building your brand you are declaring to the public, in any forum that you choose to use, that listen all “this is who we are“, but as anyone in marketing will tell you, you are also as loudly proclaiming, “this is who we are not“.

What this is all about is positioning. In a competitive business environment, the shape and definition of your brand and its values informs the target audience what you believe in, and the message also clearly defines that which you do not.

In that regard, when someone is motivated to the point of taking time out of their day to let you know that they disagree or better yet exhibit anger about your message, don’t be upset…revel in the knowledge that your plan is succeeding and that the message that you wanted to deliver has most assuredly imparted a defined branding of your business.

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This is where it starts falling apart. I don't understand how offending people is helping to gain business. Plus, how do you offend people? Blog about your religious views? Blog about how your sexual preferences. I can't wrap my mind around what would alienate people when you tell them "this is who we are" -- surely you would be telling them the stengths of your business and telling them that you are not the old-style pushy salesperson, or something similar that everyone would appreciate.

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Okay, I can hear it already. This guys has lost his ever-loving mind! How am I ever going to succeed and earn a profit if people despise my brand and won’t buy from me. [i.e. buying meaning the acceptance of your product or service].

If you feel this way, you are looking at the picture from the wrong angle. This “playa-hating” would not be occurring if you did not design a Contrarian Marketing campaign. So the end result is to be expected. But why would someone initiate such a campaign?

Simple answer. It works! Here’s the secret. If someone is driven to the point of anger to respond to your brand with such emotion then you have clearly determined that you have the ability and power to attract many enemies.

Sheer marketing logic then dictates that you have determined that you have the same ability or even greater ability to attract avid fans.

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Again, the premise is flawed -- proving you can make enemies doesn't prove you can create friends. And what in the world would you say or do to create enemies? And why would some real estate consumers be fans just because you have enemies? they may be concerned you have so many enemies and just pass you by.

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And as you know, the avid fans are the ones who will buy and accept your message time and time again. That’s how your message can go viral. While the squeaky wheel complains openly, the fan may not. Yet they will tell their friends, they email you directly and they buy from you.

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You are assuming all this on a false premise -- you still haven't established where the fans would come from.

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What’s more compelling is that the avid fan actually enjoys the displeasure of the complainers and they become the foundation of your brand and business.

Some of the biggest brands in business have major detractors. Yet they don’t care. They appeal to a segment of the population and audience that does not subscribe to what those who feel offended think. In fact the brand of choice actually becomes more clearly defined as positive, by the more the naysayers complain.

A brand needs to appeal to a way of life, an attitude, a system of beliefs and values. It can not, nor should not attempt to pander to all demographics of society. A brand (insert blog, house, service or product) attempting to woo everyone actually becomes a diluted commodity failing in its purpose to actually attract an avid fan base.

Instead it does just the opposite, it creates brand indifference. Want the fastest way to kill your business? Engage in a campaign that, in a sea of competition, breeds indifference to your brand. In that instance, you’re done.

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Your logic is not working. You still haven't shown how enemies in the real estate busines create these loyal fans.

Would you market a home as a home for straight people, so you can piss off all gays? What?

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Benneton has mastered Contrarian Marketing. Where most brands seek to avoid offending any segment of a demographic, Benneton’s contrarian approach, since followed by Abercrombie & Fitch and many others, Benneton seeks to set themselves apart from its competitors by delivering strong messages designed purposely to evoke an emotional response. Take a clothing campaign they ran using photos and stories about prisoners on death row. Can you imagine using murderers and rapists as pawns in your marketing campaign?

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No, I can't imagine using murderers and rapists as pawns in my marketing campaign. It would make a real estate company look like some strange organization that would scare the hell out of most home buyers, who just want to buy a home, not worry about social issues.

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Benneton knows their audience. They know that while many will be appalled, many will applaud such a provocative marketing campaign with the backdrop of making social and political commentary.

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Their audience is probably overindulged adolescents whose parents pay for everything and don't worry about Benneton's marketing devices to attract them. Or gen Xers who just like the clothes. But the difference in an investment the size of a home compared to buying clothes from a whacky company is great. Who is going to trust a conservative in nature investment like a home to  a company that seems far out there? Hardly anyone.

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Recently the Miley Cyrus photo shoot at Vanity Fair caused a tremendous uproar. Vanity Fair could not have paid for such publicity. While many condemned what occurred, the readership of Vanity Fair, what may be the silent majority, did not have a problem and I am sure in the boardroom their were a lot of high-fives going around. Try and price out the amount of brand mentions that Vanity Fair has received in the days since the Miley Cyrus photo shoot went public.

Advertising that makes you feel good inside is fine and most assuredly has its place, however companies that utilize a contrarian approach do so because they feel they can get a lot of mileage out of exploiting “hot-buttons” and moral outrage. Their target demographic distinctively accepts this.

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Here is where I have the big problem. Moral outrage? I want consumers to have moral outrage over my marketing so i can attract raving fans? I'll get milage from this technique? I don't know what to say.

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Diversity of market share is often taken for granted amongst the established brands. In real estate, there has been an established norm. The belief is that there is a certain way to do business, and the masses who enter follow by being given the same instruction.

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Actually there is a new idea about doing business, but it has to do with technology and service, not moral outrage.

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This does not mean, by any stretch of the imagination, that there are not consumers out there that want to and will accept a business that will throw caution to the wind and deviate..no kick to the curb, conventional wisdom.

A contrarian position can only work if executed with full knowledge and care that you have ascertained that a market exists that is silent and wants a voice. While offending some, you must be statistically sure that there are numbers in your demo whose loyalty will grow as the assault on CV continues. Contrarian Marketing is a high risk, high reward strategy that is not for everyone.

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I can see where a company could market itself as a new company that goes against the traditional methods of real estate, but I can't see where this would anger anyone -- it's not like everyone is in love with traditional real estate. New methods of doing business are ususally welcomed by consumers, it's jsut a matter of whether the new model cn be profitable. But from you have set up, it seems you are talking about a company doing something so outrageous it would cause moral outrage and i can't imagine what thet would be or how it would lead to success.

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While it’s doubtful that there could ever be a message as bold as Benneton’s in the real estate industry, contrarian marketing can and does work in this sector.

The next time you design a marketing campaign and it’s met with jeers and denigrating comments by those outside your intended demographic, don’t worry about it and definitely don’t fear it.

Instead understand that your goal was to evoke emotion and each response you obtain from someone who was offended indicates that your campaign is working, so embrace a negative response.

Then go back to the warroom, sit with your team and don’t engage in talk of how to appease those who are appalled, but rather figure out what you can do next to tick them off even more!

Trust me, it works! If you don’t believe me, ask Benneton, or Abercrombie & Fitch, or Apple, or Starbucks, or…

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I can't trust you, because you haven't told me what "it" is. What works? Give me an example of creating enemies that causes you to have enough raving fans to be successful. I can see where you could create a model that would enrage other real estate companies but win the love of consumers, but that is not what you set up. You have been talking about a marketing plan that causes some enemies among consumers and somehow creates raving fans. Give me an example for real estate.