As a side note, we’re trying to hire an online marketer right now. If you want to learn more about the position, please click here: Online Marketing Analyst. In fact, it’s the slew of resumes better used as kindling that we’ve received for this position that has inspired this post.

First, let’s start with the difference between marketing and advertising. I’ve written about this before on this blog. Advertising is salesmanship expressed through a different medium. Advertising is the practice of taking whatever you’re selling, and expressing its virtues through print, TV, radio, you name it. Advertising is the message.

Marketing, on the other had, is the practice of getting your advertising message in front of as large an audience of the right people as your budget will allow. So, once you have that message, you need to figure out how to put it in front of potential customers. You need to ask where your potential client spends their time? What media do they consume? Which websites do they visit? What keywords do they search on? How expensive is it to bid on those keywords or optimize my site to rank organically for those terms? What does an ad cost in a specific publication and how many people get that publication?

In short, marketing is a lot more than just advertising.

If you’ve never had a job that required you to be results accountable and measured the effectiveness of your marketing or advertising campaign (regardless of what you called it) then you haven’t been in marketing. You’ve been in advertising or copy writing or PR.

Often, Marketing and Product Management go hand-in-hand. Why? Well, a Product Manager is going to look at costs and what those costs get them. The cost of building a new feature and how many new customers that might satisfy or existing customer the new feature may help to retain. A marketer is going to look at an ad buy or the amount spent monthly on, say, SEO, and then look at what sales were produced by that component of their budget. Both are trying to maximize or optimize their budget to get the most positive effect on the business.

If you want experience with marketing, but no one is going to give you the job, you can do this yourself – that is, if you’re in one of those non-marketing “marketing” jobs;

1. Start by figuring out what you think is success: maybe it’s traffic to a website or the number of users who fill out a form on your website. Maybe it’s the number of people who open your email newsletter or the number of folks who click on a link in that newsletter.
2. Now, take a benchmark. Look at a few newsletters and look at your open rate, look at your click-through rate, and write these metrics down. Next, ask yourself, what can I do to improve these numbers?
3. Make an “Educated Guess” Change. If there are 12 things you could do, pick the one which you think will have the biggest impact and make only that change. Now, compare your numbers. You may have to do this several times to see a change.
4. Benchmark and Repeat. Now, with your new benchmark, make another change. Repeat.

Now, you’re optimizing. Now, you’re a marketer. If you’ve made a measurable difference in the success rate of the campaign, now you have some experience that you can talk about when you interview for a real online marketing job.

Good luck.

Answer
Our general rule of thumb is to NEVER take someone off your list. ex. I just closed a deal with a client that was put on our email list about 3 years ago. I hadn’t heard boo from them in 2.5 years and then, 6 months ago, I get a call saying that they’ve been getting our newsletter and they want to talk. The deal closed on Monday.

Think about this. Someone might have thought about buying 3 years ago and registered on your site to search for property. Instead they rented and stayed in the same rental for 4 years. Now, it’s time to buy again and they get an email from you. Your monthly newsletter just got you an active buyer client.

Here’s another thought – someone comes along and registers to search MLS but buys with a C21 agent because they walked into an open house and loved the place so put in an offer with the rookie who was staffing it on a Sunday morning. The C21 kid quit the industry last year because he couldn’t make a real living at the real estate game. Now, it’s time to sell because the family needs to upgrade since their second kid is on the way. Your email marketing piece arrives. They call you.

Fact is that everyone moves – I still get emails from Realtors and I bought my home 7 years go…

Yesterday, I spoke with a guy who told me he wanted to run a direct mail campaign to drive traffic to his website and capture leads to “farm” (his word) into clients.

Now, first let me say that farming a cache of leads is a great strategy. You can source your leads lots of ways. We recommend a strong online marketing campaign including strong real etstate seo efforts, ppc, email marketing, and a highly accountable reporting system.

So, this guy isn’t completely off the mark. Yes, your database of leads and customers is gold. You need to nourish this list and grow it. The more qualified users you can drive to your site, the more leads you will generate. If your site is well built to convert real estate buyers, sellers, and renters into leads, then the more traffic you have the more leads you should have.

As we’ve mentioned many times on this blog, you need to consider the cost of each lead. What did you pay to acquire the lead? If you paid $4000 for 8000 clicks (that’s $0.50 per click or site visitor) on Google Adwords and that generated 400 leads, then you paid $10 per lead. Got it?

Well, let’s think about this direct mail campaign that the guy on the phone wanted to deploy. He’s going to spend money sending those mail pieces upfront. Let’s say he sends our 10,000 pieces at $0.40 each. That’s $4000.

Now, he told me that these mailings were going to direct the users to his website. So, how many of the recipients will actually go to a website on a postcard? Here’s where the plan falls off the tracks.

It’s not likely that many of the recipients will actually go to the website. I don’t know about you, but I toss those mailers in the trash. I pick up my mail on the way into my building and the next thing I do is filter out the junk mail straight into the garbage.

So, if our friendly realtor is lucky, he’ll get maybe 5 or 10% of the recipients visiting his site. If the site was fantastic and converted leads at 10% (which is pretty high) he’d have 10000 x 0.1 x 0.1 = 100 leads. That’s $40/lead. Honestly, the cost would likely be even higher.

Bottom line – For real estate marketing campaigns, SEM, SEO and PPC are far better investments than direct mail. And please don’t be fooled and think that you can generate web traffic efficiently using traditional marketing like direct mail.

Hopefully, we just saved you some time and money.

Please name for me 1 thing that you do in the same way that you did back in 1980. Just one thing that’s done in the same way. Something that hasn’t been affected by technology, made faster, or eliminated altogether? Is there anything at all that’s the same?

Do you communicate the same way you did back in 1989? The same phone? The same typewriter? Has your job been changed by technology? Of course it has. If it has not, you’re probably a painter. Even if you’re a painter, I’m sure the way you sell your painting has probably changed. Unless you’re that guy on the street corner selling your art, and I suspect, if you’re reading this post, that’s not you.

What about your marketing campaign, are you marketing the same way you were in 1989? If you said yes, then you need to wake up!

Best practices in real estate marketing have changed a lot. The unfortunate fact is that lots of real estate agents are marketing themselves and their services in the same way they always have. If the only significant affect of technology to your marketing has been the way you generate listing sheets, it’s time to get with it.

The really shocking thing is that there are lots of BIG real estate firms that still haven’t embraced the internet. They’re not leveraging SEO or PPC or social media. If they are, it’s a small percentage of their marketing budget.

Developers are some of the biggest culprits out there, or I should say, it’s the marketing firms that work with developers. These guys are spending a lot of money – I’m talking about hundred of thousands or often millions of dollars – on the same media and sales methods that they used in 1989. I invite you to look at the marketing budget for a development in your area. If you live in NYC or maybe LA, then this might not be as true, but just look at where they’re spending their money. What do you see?

Very often you’ll find large print media budgets in marquis local newspapers, the same papers who are dying because of drastically reduced circulation. You’ll find huge budgets on branding firms to design expensive brochures and folders filled with highly designed collateral. There will be special attention paid to press releases (ok, that’s a little better) and flowers for the model unit. Even with all of this spending, the real estate marketing firm that reps the place is probably still taking a full split.

If you find a website on that budget, you probably won’t find much online marketing to support it. An email marketing plan? A SEO retainer with a good SEO firm? A PPC ad buy? A CRM system? Is any of this on there and does that budget rival the print budget? I doubt it. Have they invested in a good CRM system for the sales center or model unit staff? Is technology going to help them sell the units in inventory any faster? If not then you know as well as I do that an opportunity is being missed.

OK, for you analysts out there, I know what your comment is going to be before I even ask. You want to know why a budget should be allocated. Or, maybe the question is not why there needs to be an online marketing budget, but is it actually a better investment? The answer is unequivocally yes. We’ve done the math for many projects and over many years. SEO, PPC, email marketing, social media, the online marketing 4 some, you might say, are by far more cost effective marketing investments for real estate marketing.

If, by chance, that budget you’re examining does have some online marketing on there and leads are, by chance, being associated with media buys or sources, do the math. Calculate the cost/lead and you’ll find that the online leads generated are costing half if not less than half of the leads from traditional media.

So, please ask yourself again. Am I using the same real estate marketing methods that I was 20 years ago? If you are, it’s time to innovate.

Well, all of those are indeed reasons to celebrate, but not too much. It’s like the old saying goes: That, and a token, will get you a ride on the subway.

At the end of the day, there’s no revenue generated directly from being at the top of the SERPs. No one is paying you to be your Facebook friend and Twitter followers aren’t a revenue stream. These are all means to an end. The end goal, of course, is revenue.

Let’s examine this process. A user is out there on the web, they’re tweeting, let’s say, or they’re searching for a real estate agent on Google. The first goal is for them to find you and click to your site. Great. Step 1 is implete, you’ve generated traffic. users are clicking on your organic listings which rank high because of all that SEO you’ve invested in.

Now, the user arrives at your site. What do they find? Is your site engaging? Can they easily find what they’re looking for? Are they compelled to sign up and become a lead? We’ve written many times on this blog about the fact that SEO is a WASTE if your site isn’t any good. It’s true that we often have clients contact us for SEO services and we tell them that we’ll need to redesign their website before doing any SEO. Otherwise, they simply wouldn’t see any benefit from our SEO services. Some folks out there, some in real estate and some in other industries, think that SEO gets you clients. Well, it doesn’t.

SEO is a means, not an end.

So, let’s be optimistic. The user found you, they arrived at your site. They became engaged. They even signed up and converted from a user into a lead. What now? Does a lead = money in your pocket? No, a real estate buyer or seller lead is only worth cash when the deal closes.

That said, it’s easier to understand the value of a lead. The closer you get to the transaction and the smaller the numbers get, the easier it becomes to assign a dollar value to each unit. If in a 1 month period you generate 100 leads and sell even just 5 of them a home, and your monthly marketing budget is $2000 that means you’re spending $20/lead and your customer acquisition cost is $400/customer.

But we’re getting ahead of ourselves. We have search engine ranking producing website visitors. The visitors are converting into buyer and seller leads. Now we want deals. How do we maximize the conversion of those leads into deals. Here are two ways.

First, email marketing is essential. Lots of your leads will not come back to your site unless they’re prodded to do so. Send them nightly listing updates. Send them your newsletter. Email marketing is the best way to re-engage a lead. It’s also the best way to stay in touch with your past clients, a source of repeat business, referrals, and testimonials (which are great for SEO).

Second, your site needs to be a resource to the buyer. They’ll keep coming back, and therefore be more likely to convert into a deal, if they are engaged with the tools on your site. Your property search should be fully featured. A user should create an account and save favorite listings, save favorite searches, take notes, save and edit their listing update criteria, and communicate directly with you, right through the site.

To review:

1. The user finds you on Google or Twitter or where ever
2. They become engaged by your site’s design and functionality.
3. Conversion from a user into a lead
4. User returns to the site as their buying or selling resource.
5. Conversion into a client signaled by a deal closing.

Remember, steps 1 through 4 are all means to an end. It’s like my football coach used to say, “you can celebrate when you cross the goal line.”

A little bit more about the two positions we are looking to fill immediately:

Ruby Developer

Strong technical and coding skills are essential for this job. You should have experience interacting with clients and effectively communicating with several parties to achieve results. Knowledge of online marketing and how the web can be used to drive business is key. Demonstration of superior client interaction, communication, and time management capabilities are a important for success in this position.

We will also be looking for the following abilities and qualifications:
•Communicating with clients to understand their needs and mapping business requirements to technical specifications
•Working with a team to strategically design and implement solutions
•Plan and execute internal company projects and contribute to long term company direction
•Write software in Ruby, PHP, Javascript, HTML, and CSS. (.Net, a plus)
•Linux server administration
•Knowledge of the real estate industry is a plus.

Online Marketer

We are looking to expand our Online Marketing team with a self-motivated, talented, and driven individual to serve as our Online Marketing Associate. The position requires 2+ years of work experience, a fair understanding of Web 2.0, strong writing skills, a contagious enthusiasm and a willingness to learn and get involved in all levels of our marketing programs (experience in Real Estate SEO, SEM, PPC and email marketing preferred).

We will also be looking for the following abilities and qualifications:
•Excellent written and interpersonal communication skills
•A strong understanding of existing online marketing tactics and a demonstrated history of creative, out of the box thinking
•Proven ability to take on several projects simultaneously from different groups; ability to delegate and manage tasks accordingly
•Familiarity with Email Marketing Tools such as Constant Contact
•A strong grasp and understanding of company branding
•Understanding of the real estate market
•Ability to work in a fast paced, fun and entrepreneurial environment
•A self-starter mentality and ability to work independently, as well as within a small team

If you match either of these descriptions or know of someone who does then please refer to BostonLogic.com/jobs
for more details about the position and how to apply.

The next session is going to be an in-depth look a the subject of this post. We’re going to be talking about traditional media as it compares to online media. Of course real estate seo is an online marketing medium. So, we’ll be touching on SEO and talking about how it stacks up against the other media.

Now, at Boston Logic, we’re on the side of those who proclaim the digital marketing mantra “Print is dead!” Well, maybe not yet, but it’s circling the drain.

The basic question is, why is this happening? Why is traditional media losing favor while online media is gaining a larger and larger share of the marketing dollar? From our perspective, there are two forces at work.

First of all, our lives are moving online. You need to market to the customers where they are. Your customers are online. Everyone quotes the fact that 80 or 90 percent of real estate buyers start their search online. But the reality is that we do a lot more than just search for property online. We spend hours each day online. We’re buying fewer newspapers, listening to less radio, and we use our TiVo to skip the commercials when we’re watching TV.

The result of this trend is that the number of impressions that each ad spot gets has come down. A TV spot used to be 25% more effective than it is today. And this is steadily declining. Newspaper circulations are falling off a cliff. The news is free online. The paper wastes trees. Pick your reason, we’re all just buying fewer newspapers at the news stand. All of this means that the value of these media is decreasing. So much so that lots of papers are cutting staff, closing their doors, or moving to a completely web-centric model. This means that they’re only going to offer their content online. Hallelujah.

The second reason that marketing dollars are going on line is accountability. Online marketing media, SEO, PPC, social media, banner placement, and email marketing, are all relatively easy to track. You can know how many visitors came from Google’s organic results to your site and how many of these users turned into leads or customers. This means you can calculate the cost of each lead based on the number of leads and your investment into SEO. Calculating ROI is even easier when you’re using Pay Per Click.

In stark contrast, it’s hard to know if a user came from a TV ad or just typed in your web address. Sure, you can print a promo code in the newspaper ad and use that to try and track effectiveness, but then you need to offer some kind of a discount and not everyone will use the promo code. So, you don’t know if your ad is a flop or if it’s actually performing better than your numbers are telling you, based on the number of folks who entered the promo code.

Most small and medium sized businesses don’t even try to track the effectiveness of their print campaign. To most business owners, marketing is a black box. You insert money on one end and hope that it produces business out of the other end. The black box provides little accountability and really doesn’t help you understand your ROI.

If you are one of the smart ones and you are working to understand the ROI on your many marketing media, then the results are probably quite clear. Most marketers know that they get better value out of online media than they do from traditional media. This is the nail in the coffin.

When the numbers tell you that SEO leads are costing you $5 and PPC is costing $7 but the newspaper produces leads at $35. Well, it doesn’t take an MBA to know that you should stop paying for newspaper ads and invest more of your marketing dollars into SEO and PPC. Everyone who runs the numbers is seeing this trend and they’re all moving online.

I could, very honestly, go on. This topic is quite broad. I’ll touch on it in another post soon. I’ll certainly be going into much greater detail on Monday. I hope to see you there! Thanks.

But, without changing the way your entire office works, I want to give you some suggestions on how each member of your team can put in a little work each month to help your office website rank better in the search engines. If you have the right systems setup, then you’ll see more leads for everyone.

1. Make sure there’s at least one link on your real estate agent site to your real estate office’s site.  Inbound linking is very helpful when you’re trying to SEO a site. The best links for your real estate seo will be from other real estate websites to your site.
   1. Make sure the link is HTML text and not an image.
   2. Compose the text of the link carefully. If you practice real estate in Newport, then the text of the link should read “Newport Real Estate” or “Newport Homes.” If you practice in Boston, then the link might read “Boston Real Estate”  or “Boston Condos.” Choose terms for which you’d like your office site to appear higher in the search engine results and make that the text in the link.
2. Start an office blog and divvy up the writing assignments. The average real estate office in the USA has 10 agents working in it. If each agent writes a post every other month, then your blog will be well populated before you know it and you’ll start to see reader traffic, comments, and leads. Here are some tips on how to make that blog engaging. Also, if you didn’t know that blogging was good for real estate SEO, there are plenty of posts on this blog that will explain why and how to do it better.
3. Each agent in your office should use social bookmarking websites to promote your site and each post to your blog. Every real estate agent and even the admins in your office should learn how to use StumbleUpon, Digg, Reddit, del.icio.us, and other social bookmarking sites. When a new post goes up, a few members of your staff should bookmark each post on each of these sites. This should take no more than a couple of minutes. Have a look at the bottom of this post and you’ll see links to lots of social bookmarking sites. Social bookmarking will bring referral traffic to your site and the backlinks will help your search engine ranking.
4. Make sure every agent in your office has accounts on Facebook, Twitter, and Linked In. Make sure the office has a page on these sites too and that you’re all fans of or connected to the office page. If you don’t know how that works or if the last sentence I wrote makes no sense to you, you need to learn more about social media sites. Call Boston Logic immediately. Social networking sites are a great source of referral traffic, don’t miss out on these visitors!
5. Aggregate email lists. Make sure the office is sending out a newsletter at least once a month. The content can be pulled from or at least reused on the blog you’re going to start.

Ok, these are all simple SEO tasks that just about any agent in your office should be able to do. If you’re reading this post and thinking how great it would be to get the whole office behind an effort like this, just remember that people love to follow leadership. Be the leader in your real estate office who starts the organic SEO effort. Your colleagues will thank you.

Have a great weekend.

For a long time now, we’ve been partnered with Constant Contact. We’ve done work with iContact, and we use Campaign Monitor regularly too. We’ve been designing email campaigns for years. Every one of these campaigns is designed to help our clients maximize the value of each contact in the email list. This is the reason email marketing is so important. It’s going to help you get the most out of your other investments.

In Real Estate, as in many industries, your SEO efforts are focused on finding leads and customers. Often we judge the effectiveness of a marketing media – be it SEO, PPC, or any other – based on the cost per lead. Now that you’ve paid that money for each lead, you want to maximize the conversion of those leads into customers. Email marketing plays a key role in doing so.

Every lead you get needs to be added to your email list. When they sign up on your site, they should be automatically imported into your contact list and be saved in your CRM system. If you’re using the ONE System by Boston Logic, this is already happening for you automatically.

Now that your leads are in the list, you need to communicate with them. Send them a newsletter. Send them nightly property updates. Add them to your drip campaign. Our clients with email campaigns are far more likely to convert their leads into clients. Alert! this is the conversion rate that really matters. Now we’re talking about client acquisition cost and this is really where the dollars and cents get counted…

A small example:

Let’s say you’re spending $10,000 per month on your online marketing campaign and this is generating 1000 leads per month. This means you’re paying $10/lead. Now, if you’re not emailing them, you might be converting your leads at 2%. So, for those 1000 leads you’re generating, you’re doing 20 deals. Your customer acquisition cost is $500.

Now, you implement an email marketing campaign. Say each month your list grows by 1000 email addresses. Remember, it costs very little to email each person. So, the incremental cost of adding each email address may as well be ignored for the math in this example. So, you’re collecting these email addresses and you send them a message on a regular basis. Over time, you see your conversion rate go up to 3%. Now, your cost per lead has stayed the same and you’re only paying a $333 customer acquisition cost and you’re doing 30 deals per month instead of only 20.

In this example, you can see that your marketing expenses don’t change all that much, but you do 50% more deals! And these numbers are realistic. These kinds of results don’t happen overnight, but they do happen. Your list is gold. You’re investing in SEO in order to get leads, but that’s not the end of the end goal, of course.

When you’re making your strategic SEO plan, think about how you’re going to maximize the conversion of those loads into sales. When you do, remember that email marketing is an important link in that chain.

Thanks for reading.