Last week Marcie Geffner, a real estate reporter in Los Angeles, penned an article for Inman News titled, “Web2.0: Where’s the beef?” (unfortunately, now behind Inman’s subscriber wall).
In her article, Geffner points out that, “an overly heavy reliance on blogs, social networking and video as a business strategy is a questionable proposition since no one has demonstrated that Web 2.0 works as a marketing tactic.”
Granted, there has been no large scale study or analysis of the success (or failure) of “Web 2.0” in real estate. I can attest from my personal experience that blogging has resulted in numerous prospects and more importantly clients — ie: closed transactions that resulted in food on the table and shoes on the children. Many other agents reading this have similar experiences.
However, many would also be quick to say, “I’ve blogged my ass off and received nothing.”
Is blogging/Web 2.0 the answer to all real estate agent’s woes? ARDELL, arguably the “Godmother of Real Estate Blogging” is on the record as saying that she believes that “all agents should blog”. Normally Ardell is spot on in her thoughts, but I have to respectfully disagree with her on this. Blogging is not a panacea, nor is it the right tactic for every agent. Yes, blogging’s Web 2.0ness results in transparency, it allows agents to see things from the consumer’s perspective and it is, bar none, the best way for an agent to demonstrate their personality and expertise to the masses. But blogging is hard work. Writing is an excruciating process for many. I happen to love blogging, I’m sick that way, but many people will despise the time and effort it requires.
That doesn’t make them any less an agent than one who does blog. Just as my refusal to door knock, cold call, or “farm” in more traditional methods doesn’t make me any less an agent. We’re just different, with different approaches.
I can’t begin to estimate the number of times I’ve been asked, “how many prospects/clients/closed deals have you got from blogging?” And I can’t answer that question. Yes, I could prove quantitatively SOME of the results. I have received the coveted “Come list my house” emails or phone calls. But far more often Web 2.0 results are much more difficult to quantify. Does getting quoted in the paper, being on television, or getting invited to conferences lead to business? Probably not directly, but clearly there is an “indirect goodness” that comes out of things like this.
Geffner asks, “What was the cost in time and money to generate those leads and close those transactions? And were those per-unit costs cheaper than traditional forms of advertising?”
Great questions! The out-of-pocket expense of blogging is minimal. WordPress is free, and my hosting costs on the order of four bucks a month. Time however, is another story. I spend several hours a day reading blogs. The knowledge I gain from this is, to me, priceless. There is a vast expanse of knowledge surrounding all things real estate out there, just waiting to be absorbed. Marketing tactics and strategies, local and national market conditions, networking opportunities — all of these things are difficult (impossible?) to quantify in terms of “dollars earned”. Actually writing posts for me comes fairly easily. I type pretty quickly and the words flow out of my head in some semblance of order. I “edit on the fly” and don’t have to fight for words. Lengthy posts are not an issue (as evidenced by this very tome). I’m lucky that way (though I’m sure some, if they’ve read this far, are rolling their eyes and screaming FOR THE LOVE OF GOD MAN, WRITE SHORTER POSTS!).
Geffner questions whether “Web 2.0 the next big thing for real estate” and says, “What’s needed is reliable data from proven sources that can track, measure and analyze the results of Web 2.0 in hard numbers that contribute to the bottom line.” She ponders “whether Web 2.0 is a short-term fad in the history of leisure activities or a true paradigm shift in lifestyles”. Given the nebulous nature of defining tangible results from Web 2.0’ing we will likely never have a large scale analysis of the results. Anecdotal results may well be all we ever get. But if I may go back to something Ardell said that I can completely agree with, “Web 2.0 is good for everyone. It gets more information than ever before, out into the open where it belongs.”
A fad? I think not.
Hat tip to Connie Clark for pointing out Ms. Geffner’s article. If you are an Inman subscriber, you should read it as it provides much food for thought.
Todd says:
If your blog isn’t generating the results you want, there are a couple of things to try. First add the “SEO super pack” to your WordPress blog ( you ARE using WordPress, right? ):
http://wordpress.org/extend/plugins/all-in-one-seo-pack/
Then be sure to make a so-called site map, with the appropriate instructions for Google’s bot:
https://www.google.com/webmasters/tools/docs/en/sitemap-generator.html
And for real estate people I would always include a zipcode tag or geotag for all your posts. That way search result will be more localized, people doing Google searches in your same general area will see your blog higher in the search results.
http://wordpress.com/blog/2007/09/22/tags-and-categories/
http://www.georss.org/
And a reminder, anyone who tells you Web 2.0 is a “fad” or part of the “Bubble 2.0” is just mad because their $100,000.00 website isn’t making any money for them.
Web 2.0 = people first, machines second
December 19, 2007 — 12:39 pm
Vicki Moore says:
With the speed of change that affects the internet, I don’t know if blogging is a fad or if it’ll be gone like the MLS book. What I agree with is that I thoroughly enjoy it and the results it has provided, quantitative or not.
You have made an incredible contribution to your profession because of it. That has to count for something – even if all it does is make you proud.
December 19, 2007 — 12:52 pm
Christina Ethridge says:
Interestingly enough, I just wrote a somewhat similar post about this issue. My contention is that there is simply too much and too many and anyone building/running a solid business doesn’t have the ‘hours a day’ it takes to keep on top of all that ‘appears’ to be necessary to be on the forefront of Web 2.0 – 2.1/3.0.
I don’t believe it is a fad – what I do believe is that we are hearing an unbalanced amount of ‘talk’ from bloggers who aren’t really ‘doing’ the business. Quite frankly, the more ‘general’ posts I see from one person, the more I realize they aren’t really ‘doing the business’. So then I wonder, how much do they really know? How much have they really experienced? Unfortunately, the public doesn’t understand this and I’m out to educate my clients about the reality of this. Just because someone can express themselves as an “expert in the industry” by authoring multiple posts every week, does not mean they are an expert in the industry.
I agree that quantifying ROI is key (as I stated in my post) but another key point is to determine what your business plan is and focus your marketing plan in that direction. As you said, not all marketing methods are created for all agents and not all agents should do all marketing methods, including any form of “Web 2.0”.
December 19, 2007 — 1:42 pm
Ken in Chicago says:
Blogging isn’t going to make an agent a superstar and it isn’t the answer to many agents lack of performance.
With that said I do feel that it can enhance a good agents marketing efforts. It also can help an agent incorporate other business partners better into their marketing efforts, thus increasing the agents value to the business partners (hopefully increasing referrals). Blogging needs to have a specific business purpose, if not then you just another have a hobby.
December 19, 2007 — 1:52 pm
Teri Lussier says:
It’s all relatively new, it’s all constantly evolving, isnt it?
I’m online, are my clients? Maybe, maybe not, but someday they will be and I’ll be there when they show up.
In the meanwhile, there are the conversations with other agents, resulting in an increase in knowledge and education for all- I’m sure you can measure that, and perhaps we should. Better educated agents make for fill-in-the-blank.
December 19, 2007 — 1:56 pm
John Wake says:
I think Ardell also does something that is going to be a big part of the future of successful real estate blogging, she hands off (most?) leads to others. She is the mini-blog-rainmaker.
Given the time needed to blog well, I think that is the only way most people will be able to make it pencil out.
The blogger will become the face for a small real estate company or team, and will probably be the owner or team leader. In a larger company it could be part of the marketing gal’s responsibilities, the “spokes-blogger.”
The blogger will blog to generate leads and to improve the effectiveness of off-line advertising.
There will likely be very few Realtors with the writing skills to pull off this strategy. That is, if you are good at it, you won’t have a lot of competition.
December 19, 2007 — 3:46 pm
Jeanne Breault says:
Absolutely, dare I say it, brilliant response to a very compelling issue. I’m not blogging even CLOSE to what I should be. (I’d rather take it in than put it out!) But as all industries evolve in the world of Web X.0 “networking” conversations, the marketers who fall behind NOW may never fully recover.
Real estate marketers, in particular, have a unique opportunity during this sluggish market to take time to learn how to make Web X.0 best poise us for us the eventual rebound. I find it really exciting to be learning to use so many new tools and “meeting” so many new interesting people!
Not all success can be measured in quantitative terms…even back in the “dark ages” of the ’70s and ’80s corporate financials assigned a $ amount to goodwill!
As RE professionals, we need to give consideration to the topics yon raise. Keep ’em coming…thinking is a GOOD thing!
December 19, 2007 — 4:19 pm
Christina Ethridge says:
Jeanne – I used to believe that too, back in 1995 when we were the first agents with an individual web presence aka a website. I used to believe that ‘marketers who fall behind now may never fully recover’. I no longer believe that.
Why? Because right now the various marketing opportunities of Web X.0 are vast and are madly scrambling for business so they can get their legs up the ladder quicker and faster. The problem? Agents feel like they have to be all things and everywhere in order to compete and that’s blatantly false. Over the next year or two we’ll see a shake down of the best opportunities which will help us refine our choices. And, we’ll see newcomers to the fray.
An agent starting in the business today has some advantage over an agent starting in the business a year from now, just as an agent a year ago has an advantage over an agent today. That’s the only advantage, time.
December 19, 2007 — 4:40 pm
Jason says:
It’s about branding and credibility in your marketplace. It’s about being the best agent you can be. Typically people involved in Web 2.0 type activities are at the bleeding edge of technology before everyone else catches on
December 19, 2007 — 5:02 pm
Bob says:
Second to Teri. Web 2.0 is still very new. People-powered recommendations are still being explored, and the potentials of social media on traditional industries are not yet unleashed.
For example, I ran across this new site Spokeo on Techcrunch the other day: http://www.techcrunch.com/2007/12/10/spokeo-20-a-feed-reader-for-your-friends/ It connects people from disjoint websites together, and it’s not far-fetched to imagine that one day businesses can take advantage of these new tools to market themselves.
December 19, 2007 — 5:55 pm
Connie Clark says:
Hey Jay – Thanks for the “hat tip”. I knew you would be faithful to put this one out there.
For those of us who enjoy writing and have made internet marketing a major portion of our business plan, I think it’s well worth it. It’s the one opportunity I have to let people see who I am before they ever contact me and it’s fun to see all the ways I am being found…just because of something I wrote.
I also like the fact that it requires me to research a lot of topics that I can later take with me to a listing or when working with a buyer…the nice part is it’s not something I have to scramble to put together because I’ve already done my homework and it’s ready to go – just sitting in one of my blog posts (or drafts).
Now I certainly agree that there has to be a balance of time in and out of the office, but I have no intention of stopping my blog anytime soon.
Thanks again!
Connie
December 19, 2007 — 6:27 pm
Brian Brady says:
Web 2.0 works if you mix it with “Old School” Marketing tactics. What nobody wanted to recognize (in these critical articles) is that all marketing is based on a “mix”; it’s right out the first chapter of the “Principles of Marketing” book.
Social Media is but a medium; when combined with direct-mail, telephone calls, and good old-fashioned handshakes and cups of coffee is unbeatable. never in my 20 years of financial services marketing have I found a more effective way to identify “prospects” than I can today, through the social networks of Active Rain, MySpace, Trulia, Zillow, Facebook, Linked In, et al.
A comment is an invitation to start a friendship; what you do after that determines everything.
December 19, 2007 — 7:10 pm
Missy Caulk says:
Jay,I have made money from blogging and it is a big part of my business plan for 2008. It is not for everyone, some agents have such a SOI going for them, they really don’t need or want to grow their business, but me I want to grow my business.
December 19, 2007 — 7:23 pm
Scott Rogers says:
I’m not an Inman subscriber, so I can’t read the article, but quoting from this quote…
“In her article, Geffner points out that, “an overly heavy reliance on blogs, social networking and video as a business strategy is a questionable proposition since no one has demonstrated that Web 2.0 works as a marketing tactic.””
…I think it all depends on how we define Web 2.0. I view blogs, social networking and video as a few manifestations of Web 2.0 concepts or principles, but to evaluate the future of “Web 2.0” based on the anticipated future role of those three marketing vehicles doesn’t give Web 2.0 the credit it deserves.
Admittedly, there are a lot of definitions given to Web 2.0 — I view it as web technologies or services that are 1) highly interactive, 2) transparent, and 3) offer the opportunity for user contribution.
I am convinced that Web 2.0 (defined as such) has a strong future in the real estate industry and how real estate professionals engage with and interact with consumers. The particular ways that we see that playing out will certainly change and evolve — many of the future Web 2.0-ish technologies are likely web services or applications that we can’t even imagine today.
December 19, 2007 — 7:24 pm
Jeanne Breault says:
Teri, I like what you said. Right now I think we are definitely talking more to ourselves than to our (potential) clients, but that’s not all bad! In addition to more knowledge, which makes us better agents, I think we develop “relationships” within these communities. Just a week ago I didn’t “know” you at all; now I know you drink bourbon and your daughter’s grounded…lol! Mine’s grounded, too, by the way. 🙂 So, we build a support system, and possibly a referral system…isn’t that the goal of a community? We all know the world is getting smaller. When I have a client moving to another city, I’d much rather make a referral to someone I know (transparently) than thru my broker’s relo network – that has NEVER worked out well for me! So if I have a client moving to Dayton – God forbid 🙂 – who am I going to send them to? And in some of the communities/networks we’re in we actually have contact with and learn from those in OTHER industries…to me there’s nothing WORSE than standing around the “water cooler” with a bunch of real estate agents!
Christina, I see your point, and to some extent I agree with it. But I still think that all other things being equal, we agents who use the tools that make the world smaller for us will benefit in the end. Did you know 10+ years ago how interactive websites and blogs would become and how active content and links and long tails would affect your ranking in a google search? Heck, we didn’t even HAVE google then! I definitely agree that there are a plethora of Web X.0 choices right now, with more coming every day, and that there has to be a shake out in the end. RIGHT NOW there are too many and it’s just the tip of the iceberg. It’s a business cycle/trend, like the bank and Ma Bell and others in the 70’s and 80’s – a few big going to many small and then to fewer big again. I still think that agents in my age range (40-60, and maybe including some as young as 35) who don’t jump into Web X.0 and get their minds wrapped around the concepts are going to be depending on their old, reliable, traditional methods and never capture what they could. Technology is growing at warp speed. If we experience and experiment in Web 2.0, we’ll at least be able to make some educated decisions about what works for us and what doesn’t.
Jason, I think that’s right on! I prefer to think of it as “leading” and not “bleeding,” although sometimes being on that edge CAN be painful. 🙂
To sum up in a few words what I just said in too many (especially sensitive to that since I found my old Strunk and White “Elements of Style” last night): Knowledge is power. And I like to think knowledge is also choice!
December 19, 2007 — 7:48 pm
Ines Hegedus-Garcia says:
Blogging, without a doubt, has made me a better Realtor – once I identified my flaws and thanks to ARDELL pointed out what value I added to the table, it’s all I needed for it to start working for our business.
It’s not easy to write for the audience that will ultimately pay the rent – but it’s the only way to make a living out of it.
December 19, 2007 — 9:01 pm
Wade Young says:
I will point out that Ardell’s last blog post on her own blog was November 10th, and today is December 19th. I know that she blogs elsewhere, but for the “Godmother of Blogging,” that’s a long time between posts. How many leads she or anyone else gets is for all of us to ponder and for blog royalty to know. I admire bloggers; it takes a lot of work. Hours a day is correct. The question is whether hours per day could be better spent elsewhere, establishing referral partners, for example. Blogging takes hours per day every day. Once a referral partner is established, that professional relationship keeps giving and giving, and it doesn’t take hours per day to keep up the relationship. There is one very important point to address: personality. Some folks like to blog, others like to gab to potential referral partners. Others like open houses. It all works, some of it better than others. How a person spends HOURS of their day is important. Even if blogging isn’t as profitable as a traditional marketing method, if the blogger loves what they are doing, that gives a lot of credence to Web2.0 for that particular person.
December 19, 2007 — 9:48 pm
Brian Wilson says:
Great post, Jay. I really enjoyed your take on this. As someone who’s been seriously blogging for maybe two months now, I can’t say I’ve seen much additional business as a result. Yet. (Granted, I’m working on other major projects right now, too.) But the idea of becoming a verifiable source of real estate news for Colorado Springs is something worth working for, and if it doesn’t exactly make business boom, I guess I’ll have a better answer then.
Either way, I’m excited for the adventure!
Brian Wilson, Zolve.com
December 20, 2007 — 9:31 am
Jay Thompson says:
Wade – Ardell has made 7 posts on Rain City Guide since the date you said she last posted on “her” blog. She’s also likely quite busy at Brio, where she recently became the designated broker.
But I’m not here to defend Ardell, she’s more than capable of defending herself (not that it’s necessary, IMHO). The “Godmother” thing was my words, and it encompasses ALL of her posts, her tenure as a blogger, and her influence on the RE.net. Just my opinion, others may disagree.
Interesting point on referrals. I’ve given and received many referrals by establishing “referral partners” — and almost without fail those partnerships were initiated and maintained through weblogging… I could easily name 50 agents across the country that I wouldn’t hesitate to refer a client to (more if I gave it just a little thought). And I “met” them through blogging and social networking.
Great point on personality. Some will love blogging, some will despise it. It’s difficult to be successful at it if you don’t like it. But that pretty much holds true for just about anything doesn’t it?
Thanks to all for the great insights and thoughts!
December 20, 2007 — 1:51 pm
Wade Young says:
Jay-
I realize that Ardell posts elsewhere, but 50 days between posts on your own blog — that’s serious. I don’t think that you walk away from a serious lead generating source for 50 days. Given that she is such an established blogger, I think her lack of posts is germane to the issue of whether or not Web 2.0 is a success or failure. Yes, her blog has a “long tail” because of so many posts, but does she have a following? No. A following of real estate professionals perhaps, but a following of consumers? I don’t think so because consumers wouldn’t stay tuned during an absence of 50 days. This brings up another issue of website vs. blog development. The web site platform is more user friendly for consumers (who are the people who put food on our tables). You can get a long tail from a website. Ardell’s lack of posts indicates to me that she gets some “long tail” from her sheer quantity of posts, but is Web 2.0 more effective than traditional strategies? I think that is yet to be proven. Again, I don’t think you step away from a lead generator for 50 days; therefore I question how many leads blogging generates. Does Internet presence generate leads? Sure. But so does website development, and it does not require hours of commitment every day. I think that these are important things to ponder by those deciding whether or not to invest hours per day in a blog. At the end of a year, my opinion is that hours per day invested in a blog will not pay as much as hours per day invested in traditional strategies.
December 20, 2007 — 7:27 pm
Ben Martin says:
After three years of blogging, it finally paid off (dollars and cents) for me in 2007. Still, the scoffers would look at the pay off and say, “Well, you can’t prove that blogging brought in XYZ.” That’s true, I can’t draw a straight line from blogging to anything. But I can draw a squiggly line. I wonder what an agent might say if I asked how they got a particular client: their marketing or listing presentation.
December 20, 2007 — 8:19 pm
PeterT says:
Great post and great discussion. Blogging is a key part of my business plan for the coming year. I think Brian had it right though, it’s how you integrate it with your offline marketing. I see this as another way to build relationships, as well as enhance my credibility and differentiate myself from other lenders. I hope that it pays off online, but overall I know that the effort will pay dividends.
December 20, 2007 — 9:52 pm
monika says:
I’ve only been blogging a little over a year but in that short time I’ve had success with it. I’ve had people find me because of my blogging and people stay with me or hire me because they liked what they’ve read on my blog. I’m expecting 2008 to be even more successful as I keep developing my blog. I don’t think it’s a fad at all but I also don’t think it’s for everyone and certainly not a quick fix.
December 23, 2007 — 7:59 pm