How to Get Vendor Paid Marketing In Advance on Every Listing!Oct 03, 2020
Why do reps and vendors struggle with the issue of property marketing funds?
The answer is that the situation is usually clouded by misconception!
The vendor feels like they are going to get ripped off and the agent fears that when they tackle the subject with the vendor that their arch-enemy, the competing-agent, is going to usurp them by offering to give the vendor the advertising for free.
Let's look at these misconceptions in a little bit more detail...
Why does the vendor feel this way?
Well there can be a number of reasons
One reason, however not as likely as you might first think, is that the vendor is just plain greedy. They don't want to part with a cent, they require you in fact to sell your soul in order to sell their property, and they even want you to do the deal for 50% less commission than the average going rate.
These property vendors most definitely exist in the marketplace, however they are far less commonplace than you might think. Further on in this post we’ll discuss how exactly we should deal with this type of client.
Another reason why local property vendors may be fearful of being ripped off with regard to property marketing costs is because, wellllll, it happens - often - by the not so scrupulous agents!
We have all seen it happen. The ‘For Sale’ property board sitting outside the new listing, which the agent has charged the property owner for, a 6ft sign, and the ENTIRE sign graphic is an image of the real estate agent and their phone number.
In essence what has happened here, is instead of the ‘For Sale’ sign acting as a beacon to the locality that the property is for sale, it has become an advertisement for the real estate agent.
Other examples include instances such as the real estate agent charging for a photographer, when really the agent's friend who is an amateur photographer takes the photos instead.
Another case could be charging for premier online advertising which never quite happens. Other commonplace abuses of a vendor's marketing funds are charging astronomical amounts for Facebook advertising, property brochures, window cards etc., the list goes on!
Property vendors may well have the fear that their agent will use the property advertising funds to focus their advertising more around promoting themselves rather than the property.
However, in saying all of this, it's my belief that although this can happen, it happens less and less these days. Thanks to the internet, potential sellers are just simply more informed these days about what is expected in the arena of local property marketing!
As I always say; potential sellers think about selling for an extended period of time before they actually commit, in that time they have been watching how the other properties in the locality go to market and who it is that is taking them to market, for better or worse!
Of course, there is always the possibility that the other competing agent is offering to pay the property vendors marketing in advance. I have two opinions on this and how to handle it which we will cover further along in this post.
To carry out the business of sales, in any form, including real estate sales, to be consistently effective and successful in your marketplace, you must carry out business with the virtues of transparency, authenticity, and education.
The easiest way to bridge the gap for both yourself and the property seller regarding the required spend on property marketing is through the power of education.
In my recent blog post around appropriately pricing property for sale you might recall my teaching on the importance and power of becoming and positioning yourself as the local property market expert.
Well becoming the local property market expert also encompasses knowing what all the other local real estate agents are including in their property marketing and why.
Understanding which properties are best-presented marketing-wise and understanding the cost associated with that marketing, along with its objective, is crucial when positioning yourself as the local property expert.
Understanding what kind of marketing will help the buyer see the value a property offers to their lifestyle, which in turn will give them confidence in paying market value for that property, is key if you are to be able to educate your potential seller on these principles.
Henceforth giving the seller the confidence to correctly invest in their property marketing in order to support their efforts to achieve the best possible price for their own property from the local buying marketplace.
Top agents inherently know that ANY property marketing they put out for their property listings is in fact representing their own professional appearance in the marketplace.
When presenting to your potential seller which property marketing they require, in order to present their property in the best possible light, you must be able to not only show them what needs to be included in their marketing campaign but also WHY it needs to be included.
You absolutely must be able to show your potential sellers the results of including such marketing in an advertising campaign for a property listing.
So let me give you an example;
If you require your seller to agree to the more expensive advert on the property portal; you don't want your reason to be ‘because that’s what everyone else does’ or because ‘ that's what my licensee says we have to do’ or because ‘our office has done a deal with the rep for the portal and they are giving me a great price’.
What you need to do is educate your seller on the benefits of the premier advert over the lesser advert in the marketplace, you want to bring them real figures of advert views and inquiries on each advert. Allow your potential seller view and absorb the information for themselves.
If you are new to the industry, ask your licensee or one of the top reps to share this information from one of their own recent listings on the property portals.
If you know that aerial photography is the right tool to show the benefits of the property location then show your potential seller another property listing that has successfully leveraged off aerial photography to get their message across to the marketplace.
If you know a 2-minute property sales video along with a Facebook advert is an unbeatable way to reach the marketplace of local buyers in a cost-effective manner, then, show your potential seller a great 2-minute property sales video and its ensuing Facebook results.
Again if you’re newer to the industry ask one of the senior reps in your office to share their video and Facebook results with you or feel free to use mine for your presentation. You will need to sign up to my FREE mini-course to access the download, of the Facebook advertising results, from 3 of my most recent 2-minute property sales video campaigns - just sign up here
Really what you’re doing with your potential seller is taking time to educate them on why property marketing works, what the best avenues to invest in are, and why.
What you will achieve with this type of dialogue and presentation with your seller is that they will feel you are an informed real estate agent.
It reassures them that you know how best to reach the marketplace of local buyers in a manner that is not only cost-effective but also helps the buyer understand the value of the property offered for sale.
In the running of my own business, I value the selling power of transparency.
I am open and upfront with my marketing costs.
I detail them in plain English and for each expected marketing spend I focus my information around the achievable results ensuring that I show these results in written form to the seller.
How do I do this?
I show them the advertising breakdown from other recent advertising on the property portals, I show them my most recent property sales videos and I also show them the outcome and expenditure of my most recent Facebook advertising campaigns.
In this part of the presentation, I also detail the average days on market for my property listing, and of course, I include a testimonial. Why do I do that? Because it is my intention to educate and reassure my potential seller. Click here to learn more about the power and importance of testimonials for Real Estate Agents
Ok so let's chat about the situations mentioned above, i.e., the expectations of the unrealistic seller; you’ll find the answer here: Please watch my video on identifying your most important client Click here for LESSON 1 of my mini-course 3 Things All Top Agents Know & Do
Let's move on to our arch-enemy, the competing agent who is going to give the vendor the advertising for free.
Ok I am going to be straight with you now, sometimes this happens, and on those occasions, you are going to have to make a call on what’s right for you and your business, but before you do please read my article on Selling Yourself Out of the Business
In 100% of cases, I WILL NEVER pay for a property vendor's advertising out of my own pocket (more on this in a mo.)
In 98% of cases, I will not pay for a vendor's advertising in advance on the promise of being reimbursed on the successful sale of the property.
The ONLY time I will deviate from this is if the listing is RED HOT and it’s in high demand OR I am breaking into a marketplace and I am willing to take the educated risk in order to secure a listing and get my name out into the marketplace.
So a final note on the greedy vendor; Revert to the rule of thumb, that being, it is best practice to NEVER PAY for your client's advertising.
You are running a business, not a charity my friend.
If you cannot negotiate the client into paying for their own advertising, well how exactly are you going to negotiate that client into accepting market value for their property??
Let that ring in your ears!
When encountering the aforementioned obstacles take these action steps for success;
- Go back and read the article on selling yourself out of the marketplace
- Then read my article on pricing properly and positioning yourself as a market expert
- Then read my article on the advertising top agents do and why
Educate and inform yourself
If you still cannot negotiate the seller into paying their own property marketing, then re-watch my video on identifying WHO your most important client is. *here*
Once you’ve finished watching that video my friend, give that pain in the ass of a client, who won't pay their own property advertising, the phone number of your arch-enemy in the marketplace and wish him well on his property sale :)