Ken's Naperville Real Estate Blog : IS SOCIAL MEDIA A SINKHOLE FOR REALTORS? OF COURSE IT IS...

So little time - so much to argue about! Dont you wonder what some people would do with their time if they didn't have these debates to rant about?

I took a quick click over to your Facebook account.  Looks like you know a few tricks. 

Ken

You hit the nail on the head. Real Estate is a very hard and demanding profession. I have just start to try to master the Social Networking. I have learn that ActiveRain is one of the easy and the best.

Tom

The big difference is this: 

All those "other" techniques were for the most past around long before computers and the internet.  This is a new era and buyers and sellers expect us to be up to date on what's going on and how to communicate and advertise on the web.  If you are an agent who is not embracing new technology, you will be left in the dust.  I have seen older agents, some who have been around for 20 or more years, recently leave the industry because they were unwilling to change.  It's kind of sad, really.

David

Good question! I think social media works better for extroverts than introverts given the public style and personal conversation format. The lack of face-to-face contact can make the experience challenging for some. 

The only way to find out how it can work for you is to jump in and participate. If you want more information, just simply do a google search for books and blogs or go to youtube for some videos.

Social media should have been on the cover of TIME as its arrival and adoption in 2009 certainly had more influence on people's lives and the way we communicate than the current chair of the Federal Reserve.

And yes it can become a "sinkhole" like anything else in life if done in excess. For me, social media, especially Twitter is an extraordinary valuable tool, information source and highway to connect and build relationships. @emilymedvec 

So right. Must portion our time and do what works for the clientele we seek out.

Ken...

I don';t think that most consumers know how hard it really is!

If you use a pair of pliers as a hammer, it may work to a degree, but not well or for long.  Tools have to be used appropriately for the purpose they are designed.  Real Estate is a relationship business.  If your strength in developing relationships is at the local Kiwanis or Lyons Clubs invest time there.  If Social Media is a place you feel comfortable with, carve out a niche and work it.  Same job, different tools, nail gun versus hammer.  Both can get the job done in the right hands.

Hi Dan, Richard, John, Emily, David, Tom, Sandra and Lise.  Thanks so much for stopping in.

Wow.

Richard, you know about working hard with social media...

Dan, yes.  Network where it works for you...

Sandra, I have been learning as much as I can...

Thanks again everyone,

Ken

If one hasn't caught on to effectively networking, shame on them.

I think social media is only a sink hole if you let be a sink hole. Like anything else, too much is probably not healthy. The real key is balance found by distributing your marketing resources across multiple avenues. And when something works and you get results, then you place a little more emphasis there while still maintaining some degree of balance among other approaches.

Hi Ken - It's a little ironic that this topic was raised on ActiveRain, where so many agents spend so much time talking to each other instead of their local markets. As you point out, almost any marketing method can be a sinkhole or can be wildly successful. It all depends on the agent using it.

My heart rate start to increase and my breathing was starting to get heavy. My adrenline was starting to pump as I read the begining. THEN - I saw the point you were making. Nice one.

Its a case of everything works and nothing doesn't Put yourself in the way of buyers and sellers, try to engage them and then connect. Keep making adjustments and keep getting better. Follow up with people aka build a relationship.

I just did a video with Ian Watt about how real estate agents can build their business online. In it he talks about how ALL real estate agents need to be online or get out of the business.

Good post, GREAT opening!

Hi Darin, John, John, and Katyna.  Thanks so much for stopping by.

I am glad you enjoyed it.

Sounds like I almost put Darin in cardiac arrest...:)

As far as a real estate tool, I think social media is a huge blessing.  If you are using it.

But most will fail in their efforts.  Nature of the real estate jungle...

Thanks again everyone,

Ken

Hi Ken - I haven't read the post you refer to so will do so after I add my 2 cents worth if I may.

I agree with what Dan said "If Social Media is a place you feel comfortable with, carve out a niche and work it. "

I'm not sure I agree with Emily's comment " think social media works better for extroverts than introverts given the public style and personal conversation format"

I am naturally an introvert but must be a forced extrovert for work.  I think for introverts like myself who can't wrap their heads around door knocking, cold calling, and having a hard time going out of their comfort zone, social media fits the bill.

Like Dan says, I feel comfortable with the blogging and the social media platforms.  Yes, I do enjoy the face to face contact with clients, friends, etc. but I enjoy "prospecting" for business this way.

Consumers are finding me and contacting me!  How cool is that?  After 20 years in the business there is a new excitement in the way I am working. 

It turns out I enjoy the blogging.  I have even taken up photography as a hobby due to the blogging.

I update my website constantly. 

It is the website and the blogging due to the longtail keywords, that people who are doing internet searches are finding me.

I just did an evaluation this week on a condo because the owners searched the internet and said they notice I specialize in that area. 

Like the other prospecting tools you pointed out Ken, they only work if you work them consistently.  So after I read that post am I going to have to copy this comment over there?

Well said, Ken!  You can't expect to jusmp on a social media site and have people flocking to you the first week - it takes time.  You have to build up a reputation.  Like you, I still do open houses as well.  Do I get heavy traffic?  No all the time but they are still worth it in my book!

So Ken why are you doing activities such as open houses that don't generate business? I am willing to bet your answer is that you want to appease the seller. If this is in fact the reason why you do them it is a big mistake because like many other agents, you are setting yourself up for failure. Why not just tell the seller the truth that they are the biggest waste of your time and the sellers?

With over 700 friends on Facebook, 3/4 of whom I know personally or have met face to face, I can't think of a better way to disseminate information to people. Where else can I get in front of 700+ people for free?No where. I have proven the effectiveness of social media time and again when I cash my commission checks from people I might not have worked with, if not for the social media connection. 

All about consistency baby ... everyone has their favorite method.  Whatever yours is, just stick to it in the long-haul, and you will have good results.  Flash-in-the-pan's never last.

Ok, this baffles me - 

First you tell us SM is a good thing - if you are using it, and then you go on to tell us that real estate sales are hard??? 

I agree with Sm being a good thing, I get business from it, you probably do too. 

But why on earth would you say real estate sales is a hard thing? If THIS is hard for you, McDonalds is hiring. Real estate is by far the easiest business I have ever worked in, and I have been around the block. If it is hard, then there is a distinct possibility that the person making that statement is clueless about how to operate a business... 

Most of the tried and true techniques work like a charm, but if you put out 1 open house sign, and then expect the world to show up, you got something to learn. On the other hand, if you organize things and make a system of it, you can have lot s of people showing up. 

I don't do open houses to appease the seller, I do them because it generates so many leads I would be stupid if I didn't... That's just me. 

This is easy - but if you don't want to do the work, it is going to be hard - unfortunately, most people seem to be inclined to not want to do any work at all... What's up with that?

Anything is a sinkhole if it doesn't work for you.

1.) Some agents can make a living without web sites and social media.  Great.

2.) Some agents can dominate a market via web and social media.  Great.

It's when an agent is really in the first category, but tries to be in the second, that a sinkhole can appear.  You have to be consistent and do it well for anything to work.

To my friend and NE neighbor Bill Gassett: Ha!  I never mentioned that I am the local open house diva.  I consistently sell homes from open houses.  My very first sale as a licensed agent was from an open house (yes the house in which I was holding the open house, not a bait and switch.)  I currently have a very high end listing under contract from... yep, an open house.

My conclusion: social media is great if it works for you or you can make it work for you.  If you can't make it work for you, and do it anyway, (or open houses, or whatever) sinkhole.

So funny ... so many posts to convince agents social media benefits their business. I say, "shhhh ... don't tell"! (Not really! I help agents get started too.)

Even posting this question on AR skews the results. AR benefits those in large markets the most, I believe. How could you possibly know all the agents in a giant market?  It's very easy for those of us in small markets to know each other/do business with each other without the benefit of the internet. Having said that, there is a LOT of learning/information sharing going here at AR , and those who don't buy into AR or some other industry social network are missing out on the most valuable thing we have going for us right now. Heaven help us the day we stop learning our craft.  Thanks to all who share their knowledge! 

Can I get an 'AMEN'????

Man...that is one of the best posts I have read on this subject in a long time, Ken! Short, sweet, and to the point. 

Nice work...so happy this was sent out on the newsletter!

You either love it or hate it.  I think by "hard" you mean.. not as easy as the consumer thinks it is.  I am a recruiter and trainer.  But I make sure everyone knows that business is just not going to fall at your feet.  It takes planning and preparation; continually adjusting, tweeking and evaluating  --- just to make sure you are spending your time and money wisely.  It just amazes me how many people are in real estate without a business plan.  I've been doing this since I was 19 years old.  I can't imagine life without real estate in it.... it is the essence of who I am.  Thanks for the post.

Love this post, Ken.  It is hard and time consuming and responsible for building me a very nice staging business in the high-end, luxury belt of NJ suburban homes.  Will it be as successful as I start to build a new career as a rental realtor in Myrtle Beach, SC?  I can only hope so.

Like everything else that I wasn't born with the knowledge to do this social media is very difficult to do but gets easier and more beneficial as I learn it.  Learn it, use it, or lose it.  I have (am) finding that the basics that have been preached to me still work and I just need to apply the basics to new events and things will turn out okay.  Thank you for the post.

Hi Clint, Deborah, Joetta, Margaret, Terkel, Eric, C. Mark, Bill, Leesa, and Jenny.  Wow.

Thanks all for stopping in.

Wow again.  Quite diverse comments.

Open houses, Bill?  I didn't say they didn't generate business.  I just have had some no shows...  I still love them.

Terk, why should I go work for McDonalds because I said real estate sales is hard?

Thanks Clint!

My point is EVERYTHING works, a little bit...

Thanks again everyone and thanks AR for including my post in the newsletter!

Ken

Right on!  "Social media" has become & is becoming important for most businesses/people.  I liken the ones that don't think so to the people that thought having a web site wasn't important.  I really don't understand the people on activerain that don't think social media is important yet they're typing away on activerain - why?  If it's a waste of time, why do it?  Don't you know activerain IS social media as well?

Ken - If it was easy everyone would be doing it. But it does get Easier . Fun post

It is hard Ken.  I remember selling my first listing in two weeks and thinking how easy this was going to be, NOT.

Hi John, Claude, and Jerry.  Thanks so much for reading.

Active Rain was my introduction to social media.  I just didn't know it at the time.

I think real estate is about to start getting easier.  My lead generation is improving...

Thanks again guys!

Ken

I think you need balance and focus to develop an over-all presence. All these things can contribute, but better to do a few things well. I don't use Facebook for business, I enjoy just having friends and fun there....am I losing business? probably, but so what....life is not ALL business.

if you don't succeed, try and try again.

The value of Social Media is, I think, proven.  I use FB as a connection to friends, with a very soft sell on real estate.  Active Rain is a big source of knowledge and ideas - thanks to everyone who takes the time to help their fellow agents.  I need to expand my LinkedIn presence, Twitter, too. 

But, living in the smaller, mountain community of Bozeman MT, I still believe face to face is the best for me.  So I continue to attend and actively participate as president or on boards of Kiwanis, church, social clubs, community organizations, Chamber of Commerce, symphony and opera, etc. - all those activities I enjoy and yet help keep me connected. And I've been mailing a newsletter 4 x a year for many years, plus now an e-newsletter every month. 

Karen - you're right.  Life is not ALL business.  But our lives are enriched by our friends who morph into our business, and new business contacts who become our friends.  What a wonderful career, indeed!

www.bozeman-realestate.com

Social media is just another tool in our toolbox in the sandbox where the customers are.  It's not the end all but if you're not online you might as well hang it up.

PS, don't get that quip about McDonald's either. 

It takes time.  I have been serious with Active Rain for about 8 months.  I am getting leads from it; no closings yet.  However, my Post are improving and it takes time.

Hi Gene, Alyce, Sharon, Weichart, and Karen.  Woo.  Thanks for stopping in...

It is a job keeping up with comments on an active post!

Gene, congrats on 8 months.  Stay with it.  I have closings to prove it!

Karen, I don't believe you don't use facebook for business.  Facebook is about connections.  Those connections will lead to transactions.

Sharon, I bet Bozeman is beautiful!

Alyce, it is a pretty cool tool...

Keep trying!

Thanks everyone,

Ken

Well, we can spend a small fortune on marketing plans and materials only to obtain modest results. Social media may be a pain to keep up with, but the price tag is nice. We try to do as much 'free' stuff as possible. Of course we never wish to look at our time as billable hours. As long as it is not producing a negative cash flow we don't mind. And we have closed several deals from open houses, floor time, door knocking, expired mining, etc. Many think a real estate license is a license to print money. It can indeed be very lucrative, although as with anything worth while it is hard work.

well said.  :)

Social Media I think is here to stay, and I think it becomes even more important has the world goes even more digital.

It's so important to use these social media sites.  If that's where your customers are you've got to try to at least keep up with them.

As the market and our clients change, so must we.  Good advice - but I'd add track what works and continue those activities.  Drop the activities that don't work now and constantly add new things to try.

I want to clarify that I don't rely on social media exclusively. I am still very active in my community. I just shifted social media to a more prominent role in my marketing efforts. I'm very active on many different social networking sites and forums. I would say that 85% of my marketing efforts are placed in online and social media venues. The other 15% is good old fashioned face to face relationship building. There will never be a replacement for that. 

People buy people before they buy services. Last I heard, 87% of home buyers start their home search online. If that gets them in the door of your open house you have a chance to succeed in this business. Sitting by the phone willing it to ring, not so productive.   :-)

McDonalds? Seriously!

I like my hard work too Ken. It pays off in so many ways - and I agree, if it were as easy as it appears agents wouldn't be dropping off like flies!

Congrats on your featured post!

Ken, I would agree, everything works if you apply yourself and these things can suck up your time like a sponge ... if you let them.  Apply yourself, use all of the tools in your toolbox and it will all work for you!

The social media sinkhole paya a better ROI than any other sinkhole out there....and it keeps working for you online...forever!  I'd be a fool not to put 90% of my marketing effort into social media/blogging/video.  Love my big sinkhole!  

Hi Brad, Jason, ____, Rob and Jeannie, C. Mark, Jill, Gary, David, Maui, and Rob and Jeannie again.  Thanks for stopping by.

Boy, when AR sends out an email with your name on it, it sure helps traffic!

Rob and Jeannie, what is up with that big picture of your award?

C. Mark, your stance has been clarified.  I too love social media.  I like meeting people too!

Brad, social media is definitely a postitive ROI....

_____, who are you?:)

Anyway, thanks again everyone!

Ken

Very true...not everything we do works everytime...but nonetheless - we still have to do it if we would like to continue to be in this business.

New is always bad...at first. When I first started blogging it was hard, I was afraid, I got over it. Doing things differently means averyone will cry out loud about it, that does not mean it will not be tremendously useful!

"It's a number's game!" says my brilliant husband Chris. And the odds are in your favor. There is a greater chance that you will get a lead from these so called "sinkholes" than sitting at home watching reruns of The Office (NBC).

Ken, I think the 'hard work' is what causes many to fail in both social media and Real Estate.  It is not a game and you certainly get out what you put into it.

You got me with that title, I was ready to talk about all the business we've gotten from social media LOL. Nice blog post and excellent post. The bottom line is it takes Active Marketing to sell real estate and a variety of channels.

Hi Missoula, Tim and Pam, Christopher and Stephanie, Vanessa and Lainie.  Thanks so much for commenting.

It is a numbers game.  Social media is a great way to grow BIG numbers...

Thanks again!!!!

Ken

Ken and everyone - This is where I disagree with you.

It's not a numbers game - It doesn't matter how many facebook friends/fans you have or twitter followers or blog subscribers. The key is your engagement and interaction with them

I would rather have 500 followers on twitter and have them actually caring about my tweets and the links I post and connecting with them, the I would have 10,000 followers and none of them really care what I'm tweeting about.

Hello Ken, not sure if anyone else said this, because I didn't read every single comment, but Open Houses are only a waste of time if you don't work them properly.  Your goal should be to add one person to your data/contact list, and if you send a personal note thanking them for attending, and follow up properly, you will get listings and sales. Lots of them.  The problem with people who contact you through social media is they are not "in" to relationships, so it's there is a far lower "retention" and referal rate...it doesn't have the same "residual" value as people that you have made contact with face to face.

Great post Ken and love the comments.  I love using social media but am finding most agents around me just don't get it.  Consistency is key-- we need to really work it-- and that's just as hard as any other marketing.  There's just no easy way :-)

Social Media is a business tool, just like other business tools (open houses, networking, farming, etc.)  I think the problem comes when Realtors don't treat it like a business.  You need a plan of action, a realistic timeline and you should test, test, test all of your marketing to make sure it's giving a return.

So many get on Social Media with out a plan and just end up spending precious hours on meaningless activities.  That's a sink hole.

Ken, I always love reading your blog posts.   You have hit the nail on the head.  Whatever works!

Ken, Why are you doing open houses if they are not effective?  Do what is effective, not what others are doing & that includes social media.  Herd mentality?

Hi Lyn, Judy, Jeffrey, Michele, Gary, and Darin.  Thanks for stopping by.

Darin, I don't think that disagrees with me at all.  I would rather foster good relationships online too...

Lyn and Gary.  My open houses are just fine.  I have had some with zero turnout.  My point is keep at it, and keep at social media.  They both work.

Judy, keep reading!

Thanks again everyone.

Ken

Having been an office manager and broker with several agents I give the following advice:

1. If several agents do exactly the same thing at the same time, for whatever reason, they will get different results.  The same methods don't work for everyone.  You can't say "But it worked for them, why not me?"  There is no rational explanation - its just the way it is. 

2. Find out through experimentation those things that work best for you and do them big time.  Don't waste time, energy, and money on methods that don't work for you or give a small return.  If nothing works for you, try a different profession.

3. When you are listing a seller's property explain to them, at that time, about the methods that you find successful.  If they insist on doing other things make it clear that you want to try your methods first for a reasonable time.

About social media in general:  Even if you don't get buyers or sellers or referring agents to contact you directly through social media, your presence, posts, and comments can help your search engine rankings for your website. 

Social media is just another way to engage people. Like any relationship it can go either way. Either they like you or they dont!

Hello Ken,

Excellent answer Ken, and good comments everybody.  You're right.  I do very well with Open Houses, and I just figure it all "averages out" for prospects as long as I keep doing them and following up.  But that doesn't mean that I couldn't do a much better job on Social Media and find a relatively painless way for it to contribute.  I just think some people think it's like the "magic beans", and they've traded the cow for them! :) Thanks for all the great ideas :)

Hi Gary, Dolores, and Mark.  Wow, this continues to have legs!

Thanks for stopping by.

And thanks again everyone for participating!

Ken

Exactly- all of these things are tools that require persistence and consistency.  Everything works to some degree but it all takes work.

Hi Ken, You have gotten a ton of comments on this post.  We all do what works for us.  Happy Holidays, Ken!

Hi Shirley and Jenny.  Thanks for stopping by.

I sure have gotten a lot of comments.  More then expected!

Let's here it for persistence and consistency!

Thanks again,

Ken

Is social media a sinkhole for most Realtors? Of course it is... But it is still my most valuable tool.

Hi Ken,

I'm glad to hear social media is your most valuable tool.  Keep doing what you're doing!

Happy Post-Recovery  Ken,

Keep blogging.  #510 might be the Winner!

Mary

Social media is pivotal for a realtor's business....I just became a fan and can't wait to see how you use facebook!

Hi Sonja, Mary, and Bruce.  Thanks for stopping in.

This post keeps bringing people in!:)

Sonja, thanks so much for the follow.

Mary and Bruce, I am keeping at it. 

Let's all have a great 2010,

Ken

Ken:

I found this article late ... but I'm glad I DID find it.  You nailed the idea so well within this article.  For most, social media and other forms of marketing are a waste of time ... because they do it half-heartedly or with no true commitment and consistency.  They are too impatient and want results too quickly to see that only with time .. will they gain what they are after and seeking.  You obviously don't take that approach (nor do I).  I figure that's okay ... my competition will fall by the wayside and I, in the end, will benefit .. just as you will.

Great lesson learned from this ...    Have a great and prosperous New Year!

Gene 

Ken - I'd say that you are using Social Media at it's "Highest & Best Use"...  

Wishing you all the best in 2010...

Hi Gene and Debbie.  Wow.  You guys are both sweet.

I just have so much fun doing it...

Thanks for reading,

Ken

i have read all your idea above, but of course you will know this because i commennted on all your blogs....thanks for sharing and i will be using some of your ideas

Hi Dana.  I have enjoyed reading the old posts you commented on.

Thanks for reading!

Ken

This is a very demanding profession. It's not for the faint of heart. After 23+ yrs i still LOVE it.