15 Nov Marketing Assets Over Marketing Liabilities.
Marketing Assets Over Marketing Liabilities.
Marketing assets, as if you didn't know, are things that your business owns and controls and that generate cashflow.
As opposed to liabilities which take cashflow away from your business.
Here's the conundrum - what advantage is there in spending money specifically on Marketing liabilities?
Let's say your ad spend, or portal subscription gets 100 leads.
Your money's gone but those leads still need converting.
Your agency might be confident of convincing and converting enough of them to cover the cost of the lead - but that's a gamble that every one of your competitors is also making.
Liabilities that are ever increasing and returns that are often not measurable and rarely consistent.
For estate agents/realtors, let's use the example of portal subscriptions.
£1,500 per month isn't unusual.
And that gets you?
An Essential Sales Core Package comprising:
Branded listings.
Rightmove Plus suite of reports including the new Best Price Guide.
Live and on-demand webinars
A certificate and online training approved by no-less than Propertymark.
Automated fall-through process.
The best exposure for their brand and properties to the UK's biggest home-moving audience, as well as the products and tools to help them win more vendors and landlords.
Said Rightmove.
Seems almost a steal - except it's a liability that will always be an increasing liability.
Take it or leave it. And whilst you're at it, "in order to help us continue to upgrade the features and tools we offer, the price for your membership is increasing."
Correct me if I'm wrong but shouldn't upgrades be optional? Mandatory upgrades are simply price hikes because they can.
The trade mag Property Industry Eye ran a feature on this very subject on June 7th 2023 as agents up and down the country bilk at having their subscriptions increased by 17% and more.
One such agent, for whom I have enormous respect, when asked if he would pay the increase said:
"One has no option in our part of the world but to continue with them, and as my clients explain to me daily, they don't see their houses being marketed to the widest audiences if they are not on Rightmove and Rightmove know this."
Let's pause for a second to digest that comment.
An expert with decades of property experience being told by a third-party, with near zero experience of selling homes or marketing, what matters.
Here's the reality - if that vendor instructs or does not instruct that agency, it will not be because they are on or not on Rightmove.
It will be because of that agency's message, the power of persuasion at the appraisal and from the affinity that vendors feels towards the agency.
That other competitor agencies use a lack of being on Rightmove as a selling point should strengthen the argument. When every agency has the same marketing initiative and the same lack-lustre result, an agency that offers inspiring and credible alternatives is worthy of consideration.
The supporting comments in the article were equally lame.
Discussing social media (FB, Insta, TikTok etc.) one had this to say:
"the biggest challenge with any form of consumer marketing is the sheer cost of generating consumer 'eyeballs' at scale in a way to significantly drive a change in consumer behaviour. It's millions a year above and below the line. But it's not just a factor of cost, it's a factor of time - 7-10 years most likely to generate awareness and educate consumers etc. on changing behaviour."
Where that argument fails is that the vendor and the agent aren't looking for the most 'eyeballs' - they're looking for the right ones.
If 5 million people see the listing and no-one is interested, that's great reach but little else.
If 1 million see the listing and hundreds click on the details but don't act, that's worthless.
If hundreds act but aren't serious buyers, it's becoming a worry.
If two locals know that the property is the house of their dreams and can proceed, that's a result.
Having time and money to "generate awareness" that will significantly change consumer behaviour isn't a guarantee either - just ask the well-funded challenger portal Boomin. Here today and gone tomorrow with the help of other people's money.
I commented that it was time to own the media rather than have a child-like dependence of it. Don't build your house on rented land.
One reply was that "in this industry there is little loyalty. Our agency purchased mini-buses for a local school, a community defibrillator at a local nursery, as well as other general fund raising. Teachers, parents, at said schools would openly go to corporate agents for the "name"....you're left with little option other than playing the game."
I have seen this marketing strategy fail on so many occasions.
Billboards, local sponsorship, community involvement are ways to attract attention and awareness - they are not there to guilt the homeowner, or the local club treasurer into using the agency. I don't know the backstory but I do know that loyalty is built up with meaningful conversations over time.
It takes transparency. That they know who you are as much as what you do.
For their perspective, your agency is getting valuable exposure to the local community. Don't assume your agency has bought its way into their allegiance. Have the conversations that build trust. Conversations not just with those that seem important but conversations with everyone.
Become their favourite. As Neil Whitfield says in his excellent book Five Mile Famous:
"Shift from Marketing to Mattering."
The dependence on Rightmove is ingrained into most agents - but it's expensive and it resembles a classified ad site. Tiny homes and tiny logos with dreary descriptions. All competing against each other, all chasing attention.
And there's the solution - don't compete; don't chase attention. Attract it.
To a website, or better yet a sales funnel, that has stunning imagery and inspiring content.
To a podcast that dives deep into the pitfalls and process of choosing any estate agency.
To a video channel hosted on your site that replicates chat shows or simply delivers best-in-class footage of your instructions.
To a digital and printed magazine featuring local business and events, in addition to showcasing your agency and its people. Free, if you know where to look. You don't? Go here.
Become a philanthropist. Don't just sponsor an event. Organise and host charitable events in the community.
Become micro-famous for all the right reasons. Not because you want a return on your investment.
All of the above cost small amounts of money, but produce significant benefit.
When your agency owns the platform, with all or some of the above, it can build an audience of local people that anticipate hearing from you.
You have a "voice" and a distinct tone. As your audience grows, guess what?
Other local businesses want to associate with you. To sponsor your podcast. To advertise/editorial in your magazine.
Instead of a marketing budget liability, your core business now has an income producing asset.
Turning your marketing spend into a business asset.
An Investment Rather Than A Liability.
Here's how to reach me if you need any help with this strategy:
chris@andsothestorybegan.co.uk
Mob: (44) 07369251435
Chris.
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