There’s always something to howl about.

Third-party vendors pick up where the NAR leaves off: Milking the Realtors dry

It’s Milk the Realtors week on the RE.net — with the shilling appeals for useless new “solutions” getting pretty close to actual sleaze — so I wanted to revisit a couple of themes we’ve hit before. Inherent in the Web 2.0 idea is a de-verticalization of real estate marketing. Big-budget interruption marketing doesn’t work, but intimate viral marketing does. Because of the Web 2.0 revolution, Realtors are free — at last — to control their own marketing — and their own costs.

“So,” say the shills and wannabe shills, “how can we cash in on that?” And the result is the Web 2.0 industry for Realtors: Vertical-market weblog vendors and vertical-market social marketing schemes.

Here’s a hint: You don’t need to pay someone money to “network” for referrals and agents to refer business to. All you need to do is network. If you’re paying attention to the RE.net, you already know three agents in every town in North America.

Here’s another hint: There is no such thing as an interesting amalgamation of hyper-local real estate weblogs. A hyper-local weblog is interesting because it’s hyper-local. Combining eight hyper-local weblogs is seven-eighths boring to every possible reader — as boring as the “Neighborhoods” section of the local newspaper, but harder to slog through.

You don’t need vendors to control your marketing, and getting in bed with vendors is potentially disastrous. These are my three simple rules for dealing with technology vendors:

  1. Avoid hosted software systems
    For dedicated web site vendors, dedicated weblog vendors, dedicated virtual or video tour vendors, dedicated customer relationship management vendors, the money is in the blades — the monthly hosting fees — not the razor, the ostensible product. The initial outlay might be steep enough, but the gravy comes from taking money from you month after month for “services” for which the added incremental costs are almost nothing. Okayfine. Everybody’s gotta eat. The trouble with hosted software systems is not the pricing but, rather, who owns the data and what happens to it when you elect to take your business elsewhere. Is your data yours to take with you? Worse, is your confidential information truly confidential? If you do switch vendors, will your contact database, for example, find its way onto the spam market? Can you be sure that it won’t? The vendors in BloodhoundBlog’s audience will surely squeal that their integrity is being unfairly impugned. That’s fine. With what third parties do they share their confidential, proprietary information? Catch a clue: Do as they do and not as they say.
  2. Avoid proprietary technology
    Here’s the cute part about dealing with hosted software systems: They’re almost always built on proprietary software tools. Even if you can take your data with you at the door, you can’t take that software that you have paid for, month after month. Welcome to Ground Zero, where you get to start all over again. I am not arguing against intellectual property rights — far from it. But if you have paid for software, your right to use that software should not end with your relationship with the software vendor. If you have hardware that will still run Lotus 1-2-3, you have every right to see your P&L statement in glowing green digits. Ideally, any tools you use on hosted systems should be open source. Failing that, you should have a full-boat license to the functionality, not a license that is rent-based or contingent upon your continued commerce with the licensor.
  3. Pursue commodity solutions — and prices
    And thus we come to god’s gift to rational internet commerce, the Apache web server. If your net-based software systems are all built with standard Apache web server open source tools — like Perl, PHP, Ruby, MySQL and WordPress — your data is free from the bonds of avaricious vendors. Moving a decent sized real estate practice from one Apache server to another is not a task to be undertaken lightly. But it can be undertaken, with no loss of either your data or your software functionality. Moreover, because you are using commodity tools, your monthly hosting charges will reflect commodity prices. We pay less per month for all of our hosting — dozens of domains — than you will pay for one vendor-hosted web site.

Teri Lussier was gracious enough to cover the other half of this equation just last night:

What do I bring to this table? Since there is a bit of anarchy here, I could bring whatever I want to the table, but in the end I’m gonna shake what my mama gave me and dance with them what brung me. Today I’m bringing hyperlocal blogging.

Somewhere someone is reading this who is a new-ish Realtor, learning the business, and learning blogging, and working in a bit of a broken down market. Am I the only real estate agent in this situation? Hardly, although I am the only Bloodhound in this situation. Am I speaking of you? You are working to set yourself apart, to improve your odds of lasting in this business, and wondering how to work it in your market? This post is for you.

Greg’s advice for local RE weblogging has always been to remember the people we write for, who are not necessarily the people who comment, and certainly not the other Realtors who show up on MyBlogLog widgets. He also advised me to find local bloggers and link early and link often. All this advice is beginning to pay off for me, and in the Bloodhound spirit of sharing, I’m here to encourage the other hyperlocal bloggers to stick to your Be-the-Community guns.

In my neck of the woods, few people know what a blog is, nor do they care, and that disturbed me at first as I had some niggling thoughts about using a blog in Dayton to generate leads. On occasion, it was tough to hear about thousands of hits per day to some blogs, and still keep my head down and focused on blogging in the “be the community” way. Are you reading this and nodding your head? Let’s revisit this list of RE blogging objectives that Greg posted:

“Here is a hierarchy of objectives you can pursue with a true weblog, as opposed to a hand-crafted keyword-packed splog:

  1. Readers who like what you have to say
  2. Enough to return to read future posts
  3. Enough to subscribe by email or RSS feed
  4. Enough to promote your weblog to their friends or associates
  5. Enough to use you for a real estate transaction
  6. Enough to commit to you for their future transactions
  7. Enough to refer you to family and friends
  8. Enough to refer you to strangers
  9. Enough to actively campaign for you with anyone who has a real estate need”

Don’t you love that? It’s so Bloodhound.

A funny thing happened on the way to the online forum. What my blog is bringing me is opportunities to create leads, but first and foremost it’s relationship building. It’s Web 2.0, yes, but it’s also the same way my dad made connections- person to person. And being someone who really likes people, this is a fantastic thing. I prefer to step out from behind a computer and talk to people over coffee.

The surprising thing to me is I’m connecting with other bloggers. I do go to local meet-ups, I go to events, I get out and shake blogger’s hands and look them in the eyes. Some of these bloggers have begun to throw ideas and introductions my way, and I’m doing the same for them when I can. It’s using Web 2.0 to facilitate relationship building. TheBrickRanch is not a real estate splog and I think that is a key to connecting. The other bloggers in Dayton know I’m not blogging to shove real estate and ME down their throats. If my blog was all about ME, I wouldn’t be trusted, and I wouldn’t be welcomed.

These ideas are discussed in detail at Real Estate Weblogging 101.

And there are so many bad ideas being sold out there, I could just scream. It’s actually funny. Teri, in particular, actually demonstrates the best ideas in Web 2.0 marketing, and we give those ideas away for free. But if you want SEO scams or organized referrals trees or mutually-voluntary chain gangs, you have to pay your hard-earned money.

You are at a unique point in the history of humanity: You can broadcast — or narrowcast — your message without selling your soul to a broadcasting company. All you have to do to seize that opportunity is manage your own marketing and, as much as you can, your own marketing technology.