Communication is the Key

As I began to think about the new year (and it's inevitable resolutions), I came across the following quote:

Take advantage of every opportunity to practice your communication skills so that when important occasions arise, you will have the gift, the style, the sharpness, the clarity, and the emotions to affect other people. - Jim Rohn



I'd like to think we're all great communicators and can convey our messages with clarity, brevity and impact. But I know that's not the case for me. It takes some hard work - i.e., practice. But as my Dad used to say, "Practice doesn't make 'perfect', perfect practice makes 'perfect' ".

So, take every opportunity to do some public speaking. I think it will help your business bottom line, but more importantly, will help your self-confidence.

Best to you,

Jim Herrera

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Cruisin' into 2010

Good day ... wherever you are!

Now that Christmas is over and all the presents have been opened, you might experience a let down of sorts. Others might think of this time as a time of rest - all the family activities are slowing down and many have the week off from work in this week between Christmas and New Year's Day.

But I'd like to suggest that we focus ourselves a little differently - C. S. Lewis once said: "Nothing that you have not given away will ever be really yours."

Take a moment to chew on that quote. It's one of those crazy paradoxes, isn't it? It says a lot about the control our possessions can have over us (How much did we spend for Christmas gifts this year?). But that's the negative side. Let's think about the positive side: Generosity is powerful—it releases us from the bondage of greed and selfishness.

Yes, I know that's a strong statement. However you may experience this "Post-Christmas" time, I'd like to offer a brief suggestion. The "Spirit" of Christmas still lives within us. It's still with us each day of the year.

Take this week to commit to some form of generosity. Meet some ordinary people who've experienced its power and then discover ways to release that power in your own heart and life.

As always, best to you.

Jim Herrera

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I'm awed by the number of wonderful products and services that help agents and brokers be more efficient. MLSL clients will love them!

8 steps to making your business more customer-centric

One of the biggest challenges of a brand strategy is building a loyal customer base. To do this, you have to know your customers’ wants and needs. Otherwise, your brand-building efforts will fall on deaf ears. In her book Customer Inspired Marketing: Change the Game and Become the Brand They Really Love, Aubyn Thomas reveals eight steps to make your brand-building strategy more customer-centric:

1. Have an inspired and informed view of your customer. Many companies fail to recognize loyal and potential customers because they’re focused solely on what people are buying, a false representation of consumer demographics. More accurate ways to classify your customers include occasion-based purchases, visitation frequency, and lifestyle or affinity.

2. Determine how your customer views you. Creating an emotional bond between your customers and your brand is a sure way to keep them coming back. Customer research can help you know what your buyers are looking for. Ask yourself: Do your customers know what’s in it for them? What are the differences between you and your competitors? Can you react to changes in the marketplace?

3. Know what your customers value in their relationship with you. To show you care about more than just profits, remember what is important to customers: simplicity, access, clarity, quality, and value. Focus on rewarding customers (which requires recognizing your loyal fans) instead of the short-term goal of driving sales.

4. Be proactive. State your intentions in a promise or manifesto to your customers. It is important that you know their wants and needs ahead of time to be sure you meet expectations. Make sure to account for all types of customer interactions.

5. Attack the root causes of mediocrity. When developing a customer-centric brand-building plan, avoid these pitfalls: allowing someone else to label you, ignoring business problems, a lack of communication, too many cooks, and budgeting carelessly.

6. Build and nurture a winning culture. Your employees must share the passion that you had in starting the company. If they know where you’re coming from, they will follow you anywhere. Be careful not to take on too many projects at once or the end goal will become murky.

7. Overcome the challenges of limited resources. Your goal is to connect with customers and form long-term relationships with them. One cost-effective way to do that is by asking for voluntary customer feedback. Set your goals, know your customers, and be passionate.

8. Celebrate and build for the future. “Now that you understand where, in pursuit of customer relationships, the sweet spot exists for both your company and your customer,” Thomas writes, “you are on your way to creating a passionate brand. So celebrate!”

I hope this helps you build your brand.

Best to you,

Jim Herrera

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Note: Special thanks to Ken Beaulieu of FuelNet for this post.

Happy Thanksgiving to all! Especially to Jackie, Andy, Katie and Kelly. I hope you have a great day :D

Updating my Salesforce skills to better communicate with my customers. there's so much to learn to stay "on top"

MLSs and the new RPR and HouseLogic

As some may know, NAR has announced Realtor Property Resource, LLC., a wholly owned subsidiary whose mission is to develop a comprehensive real estate information database. The application they are using to demonstrate their technology is a property search that combines multiple data sources: MLS, tax, demographic, psychographic and census. The system will also create a proprietary RVM - Realtor Valuation Model - that will be used by Freddie Mac and Fannie Mae.

This project has been in development for over 2 years. It has resulted from NAR's acquisition of Cyberhomes and its technology development. NAR has invested $12MM for RPR which will be repaid in 3 to 5 years.

After seeing the powerpoint presentation, it appears that RPR will be a wonderfully robust tool for NAR members only. However, the water gets a little muddy when you delve a little deeper about the services the software provides.

It appears that there are many features that rival the best technologies that MLS vendors provide. In fact, it would be easy to envision an RPR that would enable a centralized MLS software service.

MLSListings is cooperating with RPR. In fact, their actual demonstrations use our data set after implementing a RETS feed from our technology group.

As with all change, new businesses and business models there are many things to be "hammered out". But change is inevitable. I'm glad that MLSListings is operating from a "glass half full" attitude. There are many here at NAR that don't feel this way. They're predicting doom and gloom.

For the other news today, NAR is updating its HouseLogic website. This site will be a comprehensive resource for the public. It takes the concept of ManageMyHome (from Sears) to a completely different level. Essentially, NAR is becoming a content delivery company. I wonder if they know what this will mean for them?

Anyway, IMHO we should embrace change. You can either get on the bus or get trampled underneath it.

What do you think?

RPR is an exciting service for realtors, coming in q1 2010. MLSL is providing data and biz guidance.

MLSL Tax search has been updated by our partner First American. Check it out.

Waiting at airport to go to NAR conference. I'll let you all know what I find.

Good morning, Evergreen Marketing Group. Have agreat day. Go close some deals!

A little facebook etiquette

Since the unspoken rules of many social-networking sites evolve daily, it’s all too easy to commit online gaffes and sabotage your goals - whatever they may be.

Check out this video from the Today Show...



Here are six common online missteps to avoid.

1. Don’t be boorish
Few people would walk into a professional meeting and immediately "ask for the order", but many seasoned professionals commit the online version of this faux pas regularly. No matter how well you know contacts, offer some praise or acknowledgment or, even better, some well-thought-out help or advice with no strings attached. Then, and only then, should you ask for whatever it is you'd like.

2. Don’t be too stiff
While you don’t want to share too much, leaving all personal information out of your profiles to protect your privacy can put you in the same league as colleagues who show up for casual Friday in a business suit. A few well-chosen items about your interests or charitable activities can make it easier for other like-minded folks on a site to strike up a conversation.

Here's an an example of how that hiring companies may use social media. MediaG in Troy, Mich., routinely researches potential hires on social-networking sites to figure out what type of projects would be a good fit for them. If he found from a person’s Facebook page that a candidate was really interested in music, for example, he might try to see if he could have them work with music-industry clients. The bottom line is that hiring companies want to get to know candidates before they make hiring decisions: “What are the things that get them really excited? When we can dovetail, that makes them much happier.”

3. Don’t remain invisible
Put up a photo, even if you don't feel you look that great. (And I certainly don't feel I'm that photogenic.) It makes the process a little more human and warm. And if someone is going to discriminate against you because of how you look, you probably don’t want to work with them anyway.

4. Don’t market yourself on somebody else's Facebook page
“Some people really cross the line,” says Matthew Fraser, a senior research fellow at INSEAD and co-author of Throwing Sheep in the Boardroom: How Online Social Networking Will Transform Your Life, Work, and World. “As soon as you accept an offer to be their friend, they’ll write a note on your wall: ‘I’m Bill Jones. I’m a life coach. I help people solve their problems.’ You realize someone is using your personal space as a billboard for their business, and it’s irritating.”

5. Understand who you are "friending"
I get a lot of people poking me on Facebook and sending me goofy stuff. But if I’m working on building a business relationship with them, I’m sometimes uncomfortable with what they're sending. I'll most likely ignore the request and hope that doesn't interfere with the relationship I hope to build. Privately, depending on what's being sent to me, I may change my perception of that "friend". I think it’s better to just stick to direct messages on Facebook with your professional contacts.

6. Don’t let your networking end online
Many people rack up new connections on sites like LinkedIn without ever solidifying the relationships they’ve started there. Try to set up an in-person meeting when you can, or perhaps even arrange a “virtual coffee,” where you both chat by phone over a cup of coffee at your desks. Once you’re in a real relationship with someone, you find out who they are and how they’re doing. And when you help them, they’ll try to help you back.

Hope this helps. What do you think?

Best to you,

Jim Herrera

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perceptiveinsights.com

Rolling Out a New Brand

Hi there,

It's been too long since I've taken the opportunity to sit and blog. So much has happened in the last 3 weeks. For these last weeks, we've been building the marketing strategy, communications, collateral, messaging for relaunching MLSListings.



I have worked with several top notch teams but I feel very fortunate to work with the MLSListings team. It has set the bar very high for intensity, patience, proactivity, attention to detail, vision and action. This group of dedicated people has been able to accomplish about 2 years of marketing activity into about 3 months!



And the results have been outstanding: completely new marketing story, market segmentations (never before done at this MLS), design and development of collateral materials, a completely redesigned public facing MLS website, a powerful presence at the CMLS (Council of Multiple Listing Services) conference, a resoundingly successful presence at the CAR (California Association of Realtors) trade show.

The following people deserve tons of credit and applause for these activities.

• Deb McManus - Director of Marketing Commuications
• Aimee Davis - Marketing Communications Specialist
• Mark Messimer - Manager of Outreach Services
• Alonzo Jennings - Senior Trainer
• Eric Sneed - Outreach Representative
• Geoffrey Lambrechts - Outreach Representative
  
• Nick Lomoro - Senior Account Representative
• Gib Souza - Director of Industry Relations
  

And, of course, to Jim Harrison who gave us the space to run.

To these folks, and the rest of the MLSListings team, I say thanks and congratulations on a job well done!

(And we've just begun... :D )

Best to you,

Jim Herrera

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Your business slogan is worthless ...

unless your business has a valid value proposition!

When asked what they do for a living, most people state their job title: “I’m the president of a bank.” “I’m a consultant.” “I’m a professional speaker.” So what? The same can be said for most “elevator speeches” at networking events — they’re worthless.

In these competitive times, when building brand awareness is critical, what is needed is a concise statement that can be repeated by you, your employees, and your customers that conveys the value of your offerings: a value proposition.

So, what is a value proposition? Well, Drew Stevens of Drew Stevens Consulting, says that a value proposition is a statement that promotes the benefits your business offers to customers. It focuses on the customer, not you or your processes. Simply put, it’s a succinct sentence that can be heard, repeated, and appreciated in a world cluttered with commercial messages.

A value proposition should contain no more than 10 to 15 words and should feature as many colorful adjectives as possible. It should be outcome based (i.e., what the buyer gets), results focused, and appeal to most any industry. Consider:

• A poor value proposition: We help create a fit individual.
• A good value proposition: We have a 7-step program for better abdominals.
• A great value proposition: We dramatically accelerate results that match your individual fitness desires.

Why should you develop a value proposition? There are four main reasons to write a value proposition as part of a brand-building strategy:

1. It separates you from the competition.
2. It distinguishes you and the organization in niche markets.
3. It spurs lead generation efforts.
4. It enables sales professionals to expediently get in front of decision makers.

Developing a value proposition is not difficult, but it takes patience. It’s vital to look at the organization from a customer or competitor’s view. Here are four questions to answer:

1. What does your business do from a benefits or results perspective that distances it from the competition?
2. What results do customers achieve with you?
3. What is the organization extremely passionate about when it comes to meeting customers’ needs?
4. What are your core values that provide results to customers?

If you can’t gain answers from these questions, the next best source is your customer base. Testimonials and case studies are great examples of value. Take customers’ statements and simply develop them into benefit-based sentences for building the brand.

“What gets repeated, gets rewarded,” the old cliché states. That’s especially true for a well-thought-out value proposition. Memory recall is faster and easier. Your employees and customers will repeat it. And, most importantly, it will drive phone calls, emails, and sales leads.

Special thanks to Drew Stevens, President of Drew Stevens Consulting.

Best to you,

Jim Herrera


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CAR Mortgage Protection Program

For those of you who may be looking for a new home or for those agents who have clients looking for a new home the California Asociation of Realtors has deployed a Mortgage Protection Plan.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

“The Mortgage Protection Program was developed to help ease the anxiety of consumers who are concerned about potential job loss and its impact on their ability to pay their mortgage should they purchase a home,” said C.A.R. President James Liptak. “It also provides peace of mind to those buyers who are actively searching for a home.”

To qualify for the Mortgage Protection Program, applicants must:

. Be a first-time home buyer – someone who has not owned a home in three or more years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed)

I hope this helps.

Best to you,

Jim Herrera

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Long Lasting Customer Relationships

In the old days, sales could be approached as a matter of mathematical probability and savvy street hustling. The higher the volume of cold calls made, the more new business could be landed. That kind of treadmill philosophy, however, based on the belief that getting new customers is more important than retaining existing ones. Worse, the belief only led to inefficiency, soaring costs, burnout, and breakdowns in trust.
Sadly, it has also led to a climate where consumers tend to believe they are being sold a bill of goods they don’t need or want. There is a price to be paid for losing trust, and not just in lost sales. In their new book, Let’s Get Real or Let’s Not Play: Transforming the Buyer/Seller Relationship, Mahan Khalsa and Randy Illig note a timely problem, relevant to the current economic climate: companies that use the requests for proposals (RFP) process to overcome a particular challenge. But rather than paying firms for their ideas, they steal them.


“Sales skills are life skills,” the authors write. “What makes us better at sales makes us better in life.” In other words, ask not what your customer can do for you, but what you can do for your customer. The more a customer prospers, the more you will, too. Let’s Get Real or Let’s Not Play offers many salient points on customer relationship building. Here are 10 worth heeding:

1. Treat your customers like friends you want to keep, not as one-night stands. The sales forces with the highest potential for success are those that position themselves as advocates for the companies they serve. They are not merely peddlers; they are advisers, boosters, and comrades in arms who join customers in the trenches.
2. All sales are not equal. Sometimes, landing a big, seemingly lucrative contract may generate an immediate windfall, but it also can increase costs if seller/buyer expectations and values are not aligned. The authors have worked with companies that have lost hundreds of millions of dollars on pitches they wish they had never made.
3. Stop guessing. When it comes to relationship marketing, don’t assume you can read your customer’s mind or rely on your gut instinct. Schedule regular meetings with interested customers and mutually explore the playing field through their eyes. Moreover, ask tough questions about the direction they want to go in. Their epiphany will become your own.
4. Exercise patience. Before proposing a solution, it’s vital to ask the customer to describe their perceived problems and needs, and why they have enlisted you to address them.
5. Keep an ear to the ground. Listening to customers yields more business opportunities. Business management strategist Stephen R. Covey, writing in praise of the book, says, “This builds a synergistic partnership for future business, taking sales to a higher level — in both high-integrity, trustworthy, win-win relationships and increased business opportunities and revenue.”
6. Abandon cold calling for “warm calling.” No matter how smooth the pitch, cold calls are time-consuming, off-putting, and ineffective. Focus on building a network in the marketplace that convinces customers to call you.
7. Slow down to appreciate the value of “yellow light” moments. When we see a yellow light at a traffic intersection, the tendency is to speed up. In business, if a customer exercises caution about embarking down a certain path, slow down and consider their fears of being blindsided.
8. Inquire about the competition. Don’t believe that it makes you appear weaker or insecure. If you are asked to submit a bid for a project, it doesn’t hurt to politely ask what other firms have been solicited for the work. That gives you a chance to gauge the competition, and it provides insight into the customer’s thought processes.
9. Develop a schedule for meeting with customers. Realize that your job is not only to inform, educate, or entertain customers, but also to help them reach a decision. Meeting plans will shorten sales cycles, help you advocate for better solutions, and enable customers to make confident decisions that will reflect well on you.
10. Look forward, not backward. It’s a new world out there. Give your customers cause to eagerly await your arrival, not a reason to hide.

Once again, thanks to Ken Beaulieu for this wonderful topic and his wisdom on FuelNet.

What do you think?

Best to you,

Jim Herrera

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Where's the note?

The following is a re-publication of an blog post that may be of use to real estate agents and homeowners trying to fend off foreclosure. It was originally written by Rick D. Misitano, Senior Paralegal, Law Offices of James M. Bosco & Associates, Methuen, Massachusetts.

I have not spoken to Rick or to a real estate attorney practicing in California about this defense. But as a homeowner or agent representing a homeowner in this situation, it bears following up. If you don't know a real estate attorney in Silicon Valley, please let me know. I can refer someone to you.

Text as follows:

"When a lender can’t produce the original note, allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party in the future. Therefore, great caution must be taken before a judge can allow someone who can’t produce the original note to cash in on your home.

What if Your Lender CAN’T Produce the Note?

So, what happens when the lender tells the Court it can’t produce the original note, because it is lost? Let’s start with the basics. If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed. That right to foreclose belongs ONLY to the person who has legitimate POSSESSION OF THE ORIGINAL NOTE - not a copy, not an electronic entry, but the original note itself with the original signature of the person(s) who allegedly owes the money along with appropriate raised notary seal and signature. So, if you are faced with a foreclosure, you have every right to demand that the person or entity trying to take your property, first prove to the Court that they have the legal right do to so in the first place by proving they have legal possession of the original promissory note.

In my opinion, an original mortgage note is much like legal tender and should be guarded and protected as such by the person holding such an asset. Loosing an original mortgage note is like loosing a $100 bill or a gift card or a lottery ticket. What if I scratched that million dollar ticket and just stuck it somewhere and misplaced it? Do you think I could just show up at lottery headquarters and claim my prize without having the winning ticket? The same principle applies to the person or entity claiming to be the legal holder of an original mortgage note. He who holds the note holds the key.

What the Lender Must Do
What often happens, however, is that the lender claims it doesn’t have the original note, because that note has been lost or destroyed. If the lender is making such a claim, the law requires the lender to prove all of the following under the “Uniform Commercial Code”, which is a set of laws governing commercial transactions that many states have adopted. It contains a specific provision on this subject (Section 3-309) which states that a person can enforce a promissory note without having the original, BUT only under certain limited circumstances.

1. The person or entity has to swear and attest that it no longer has the original note;
2. The person or entity has to prove that it was properly in possession of the note and was entitled to enforce it WHEN it lost possession of the note;
3. The person or entity has to prove it didn’t “lose” possession simply because it transferred the note to someone else (i.e., it’s not really lost); and
4. The person or entity has to prove that it cannot produce the original note because the instrument was destroyed or its whereabouts cannot be determined or it was stolen by someone who had no right to it.

All of these matters have to be definitively proven by the person or entity trying to foreclose on the property. It is not the obligation of the borrower to prove or disprove any of this. The borrower can challenge the right of the person or entity trying to foreclose and demand proof.

The Court’s Important Role
It is up to the Court to determine whether the lender has satisfactorily proven why it no longer can produce the original note. The Court also has to be satisfied that when the original note was lost, the person trying to foreclose on the property had possession of the note at the time it was lost. Until the Court has been satisfied of all of this, the foreclosure cannot proceed.

It is also important for the Court itself to understand that this issue is not merely a “technicality” and the judge should not be satisfied with anything less than full proof of this issue. The Court itself needs to appreciate the fact that if it should agree that an original note has been legitimately lost (and allows the foreclosure to proceed) it is the borrower who is still at risk.

Why? Because incredibly, even if a Court has found that the original note is lost and the foreclosure sale is finalized, if someone later turns up with the original note and proves that it is the proper holder of the note, and not the person who foreclosed on the property, the original borrower is STILL LIABLE.

That’s right. Someone took your home and the Court allowed it because it believed that the lender proved that the note was lost and it was the proper party. Then someone legitimate shows up in the future with the actual note and you still owe that person the money even though your property was taken with the blessing of the Court. Trust me, this is a very serious issue regarding post foreclosures and post pre-foreclosure short-sales. It has happened to three of our own clients! These homeowners had the need to sell their property by means of a negotiated short-sale (so they could avoid a foreclosure) only to find out that the entity claiming to have the legal right and authority to enter into such negotiations and accept such settlements sold their note to another entity and weren’t even aware of it. Several months later, the newly assigned lenders (now claiming to be the rightful owners of our client’s original notes) have since come forward and have also filed suite seeking to recover their entire outstanding principle balances owed to them (prior to the homeowners closing their short-sale transactions with the wrong note holders).

How fair is that?!?! It’s not! And that’s why homeowners need to start fighting back when someone is trying to take their home by foreclosure, especially since an overwhelming percentage of mortgages granted over the last 3 to 5 years have been packaged into securities and re-sold and re-assigned numerous times since the inception of the borrower's original note and mortgage. In some states, homeowners have better than a 50/50 chance of being successful in defending themselves against a completed foreclosure. Why wouldn’t anyone who owns a home do everything in their power to protect and defend it? "

I hope this article has helped. Let me know.

Best regards,

Jim Herrera

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Keeping It Up In a Down Market - Sales, that is

Salespeople are taking a beating in today’s economic environment. Entire market segments have evaporated. Customers and companies have no money to buy and are holding back orders. Sales lead generation opportunities are fewer and farther between. In 2008, many salespeople earned only half the commission they received in 2007.

But not all sales professionals are in a slump. Some are thriving. Some are busy generating leads, growing their client base, and making good money despite the uncertainty around them. And you can, too. Douglas Smith, a nationally recognized speaker and sales trainer, offers these four tips to boost your lead generation efforts.

Don’t wait for the climate to change.
The best salespeople take action and move forward. They recognize that the economy may be in this mess for years, and that waiting and watching is a poor strategy for success. The movers and shakers are setting up appointments, making sales calls and presentations, contacting their current and past customers, and marketing like never before. Their proactive approach is creating opportunities, leads, and sales. In boom times or bad, you can never wait for customers to find you. It’s your job to reach out and find them.

Work harder.
Top salespeople understand this age-old axiom: You can’t make more money with less effort. That’s why they are working harder and putting in more hours than ever before. Think about this: Arriving just 30 minutes earlier and staying 30 minutes later each day equates to an additional 20 hours every month. When you are working 20 hours more than the average salesperson, you can make at least 20 percent more contacts — and even 20 percent more sales.

Talk to the right people.
Some companies may want or need your product or service, but if they can’t make a decision or are constrained by shrinking budgets, it doesn’t matter. Successful salespeople are selective about where and with whom they spend their time. They are out looking for “real” buyers — customers and prospects who have both money and the ability to buy. Every minute you spend with an unqualified prospect is time not spent with a qualified one.

Make more contacts.
Customers are more cautious today, and they take more time making spending decisions. That means to land more sales, you have to make more contacts. When capture and conversion rates go down, to maintain a steady volume of business, your sales contacts have to go up.


Many thanks to Ken Beaulieu and Douglas Smith for the content for this post. If you have any comments, please feel free to add them below.

Enter the conversation!

Best to you,

Jim Herrera


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Marketing to Today's Buyers and Sellers

I continuously read about the real estate industry from multiple sources. Click on my blog profile to see some of my resources.) The following is gleaned from NAR information, the Pew Internet Life Study and articles from Bernice Ross, featured columnist at Inman.

Here are some tips about the buyers for the current market...

1. Gen X and Gen Y Rule the Buyer Market
If you're working with buyers, you can no longer ignore the fact that 60 percent of today's buyers were born after 1964 (i.e. are members of Gen X and Gen Y). In fact, 54 percent of first-time buyers are in the 25-to-34 age group. For Gen X and Gen Y, the primary motivations for buying was their desire to own a home, a job-related relocation or move, the desire for a larger home, or a change in their family situation.

Opportunity: As 75 percent of all first-time buyers are currently renting an apartment, consider marketing to tenants in high-end rentals. For buyers ages 18-24, 62 percent used social networking sites several times per week. That number drops to only 33 percent for buyers ages 25 to 44. To earn the right to do business with this growing group of young buyers, become an active part of the online conversation. This does not mean promoting your services. Instead, consider sites such as Facebook and Twitter to be similar to a social gathering where you meet others who share common interests. Gen X and Gen Y want to get to know you in a social environment prior to doing business with you. Dump the vanity marketing that focuses on you and your accomplishments. Instead, show up as an interesting, fun person who also happens to be a competent and likeable real estate professional.

2. Empty nests
Sixty-two percent of all buyers have no children living at home. Among this group, nearly twice as many single females (24 percent) purchased homes as compared to single males (12 percent). Married couples overwhelmingly preferred single-family residences (86 percent), compared with 63 percent of single females and 65 percent of single males. In terms of preferring townhouse or apartment-style condominiums, only 10 percent of married couples preferred this type of property, compared with 31 percent of single females and 30 percent of single males.

Opportunity: Niche your marketing efforts to fit the type of property you are selling. For example, Gen X (born 1965 to 1976) appears to be putting off marriage and having a family as opposed to Gen Y moms (born 1977 to 1994) who have an average of 2.3 children. Thus, Gen X buyers may be better candidates for condominiums or townhouses, while Gen Y couples may be better candidates for single-family homes. In terms of marketing to Gen X and Gen Y, these two groups dislike newspapers. They do read magazines, especially those focused on lifestyle. When marketing to both Gen X and Gen Y, show pictures of their age group enjoying the good things about living in your area, especially pictures of singles and/or families who are having fun. For older buyers, focus on couples downsizing or buying second homes.


3. "Location, location, location" is still true
While people may debate what really matters most to homeowners, NAR's research shows that the number one concern for all buyers (62 percent) is quality of the neighborhood. Convenience to work was second (51 percent), while overall affordability of homes, convenience to friends and family, and quality of the school district rounded out the top five. Given the high price of gas during the time the survey was conducted, it's not surprising that 41 percent of all buyers said commuting costs were very important and another 39 percent said they were somewhat important.

Opportunity: When working with buyers, be sure to explore what constitutes a "quality" neighborhood as well as potential commute times. Gen X and Gen Y place more emphasis on time spent with family and friends. Be sure to discuss these important issues prior to showing them property.

4. Age influences how long the buyer will live in their home
The median time that buyers between the ages of 18 to 24 expected to stay in their homes was six years, compared with 10 years for those 25 to 44 and 15 years for those over the age of 45.

Opportunity: Younger homeowners who have been in their homes four to five years are more than three times more likely to put their property on the market compared to older homeowners. While 21 percent of the 18- to 24-year-olds plan to sell in four to five years, only 17 percent of those between the ages of 25 and 44 planned to sell. For those 45 to 64, only 6 percent planned to sell that quickly and only 3 percent for those 65 and older. On the other hand, the prime time for buyers to purchase a second or retirement home is between the ages of 50 and 60.

So, now that you might have some ideas on who might be a buyer, the next question is: How can I effectively market to them? Here are some additional thoughts.

1. Increase your online advertising budget
If you're throwing your money into newspaper advertising, magazines or buying guides, you may want to shift some of those print advertising dollars to online advertising. According to the survey, only 1 percent of consumers found their agent through the newspaper, Yellow Pages, direct mail, or specialty advertising such as calendars and magnets. Furthermore, the number of people finding their homes through a newspaper, a home book or magazine, or directly through the sellers declined by 50 percent. Part of this is due to how people begin their real estate search. Eleven times more buyers now begin their search process on the Internet (33 percent) than they do in print (3 percent).

2. Fewer buyers use real estate agents to locate their homes
In 2001, 48 percent of all buyers found the home they purchased through a real estate agent, compared with 38 percent in 2008. During the same period, the number of buyers finding their home online rose from 8 percent to 32 percent. Nevertheless, the number of people who found their homes through other traditional approaches has remained stable since 2001. Fifteen percent of all buyers found the home they purchased from a yard sign or an open house sign. Another 7 percent to 8 percent located their home through a friend, relative or neighbor. Bottom line: Put your advertising dollars into Web marketing while continuing to market your listings using yard signs, open house, circle prospecting and referral strategies.

3. Internet usage trends
According to the survey, "Eighty-seven percent of home buyers used the Internet to search for homes, up from 71 percent five years ago. Not only has the trend in overall usage risen, but the percent of buyers using the Internet frequently increased from 42 percent in 2003 to 69 percent in 2008." Even though buyers actively search for homes on the Internet, a whopping 77 percent then drove by or viewed the home in person.

4. Value of Web site features
Buyers overwhelmingly cited that photos (86 percent) coupled with detailed information (84 percent) and virtual tours (68 percent) were the most useful Web site features to them. Two studies conducted by Point2Agent in 2007 and 2008 showed that having 16 photos (as opposed to 15 photos), resulted in 33 percent more page views. Based upon the Point2Agent study, the optimum number of photos for lead conversion is a minimum of 20.

5. Your local MLS Web site trumps all competitors
While social networking can help you build your online reputation, the best place to display your listings for maximum exposure is still your local MLS Web site. Only 1 percent of all buyers surveyed used Facebook, MySpace, YouTube or other social networking sites to locate properties. In contrast, 60 percent used the local MLS Web site, compared with 48 percent using Realtor.com. Individual agent Web sites (43 percent) garnered nearly as much traffic as brokerage sites (46 percent). To reach the greatest number of potential buyers, market your listings in all of these venues.

6. Disintermediation is dead
A few years ago, Web marketers proclaimed that the Web would eliminate the need for real estate agents (disintermediation). The exact opposite has occurred. In 2001, 69 percent of all buyers purchased their home through a real estate agent or broker. In 2008, that number was 81 percent.

7. Foreclosure sales represent only a small fraction of all transactions
Despite the nonstop press about foreclosures and short sales being the only types of transactions currently closing, only 3 percent of purchasers acquired their homes through a foreclosure or trustee sale. Nevertheless, that's still triple the 1 percent number from 2001 through 2007.

8. What buyers want most from real estate agents
A large proportion of the industry was worried that the buying public would have no need for agents once they had access to MLS information. Surprisingly, 48 percent of all buyers indicated that their top reason for working with an agent was to find the right home to purchase. In terms of what buyers perceived as being beneficial, the top three items were helping the buyer understand the purchase process, pointing out unnoticed faults or features, and negotiating better terms. The characteristics they found most valuable in their agent were honesty and integrity (97 percent), knowledge of the purchase process (94 percent), responsiveness (93 percent), knowledge of the real estate market (92 percent), and communication and negotiation skills (83 percent). Technology skills were considered to be "very important" by only 37 percent of the respondents.

9. The saddest finding of all
A whopping 70 percent of all buyers said that they would "definitely recommend" their agent to other buyers, and another 18 percent said that they would "probably recommend" their agent. Sadly, only 11 percent of all buyers said that they used the previous agent to buy or sell a home, while 43 percent relied on a referral from a friend, neighbor or relative. This finding underlines the importance of staying in contact with past clients, especially for both repeat and referral business.

I've said in the past that the world has changed. And clearly it has. Are you ready to keep up?

If you find this blog has value, please pass the link along to others. Thanks.

Best to you,

Jim Herrera


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Mortgage Protection Plan for California Home Buyers

If you (or if you're a California Realtor®, your client) is looking for a new home in California there is a relatively new program to help ease your fears about buying a home.

In April, the California Association of Realtors launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP) for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in three or more years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed)

For examples on How The Program Works Click Here

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

Check it out at your convenience.


Also, I found this cool website you might want to check out: Real Estate Guidance

If this info is useful for you, pass it on to others in the links below.

"Think Different"

Do you remember the old Apple advertising campaign "Think Different"? Maybe you'll remember when you see it...




Does this bring back any memories for you? It certainly does for me.

I remember a time when I felt that I could really make a difference in the world. And so it was with high hopes, high energy and a shipload of hope, I entered the workforce. But, somewhere along the way, I got sidetracked. Did you?

Well it's not too late...



What do you think? Are you ready to begin again? Are you ready to make a difference? Are you ready to become the person you were meant to be?

Join me!

Reinventing MLS Services

Greetings folks!

The real estate industry is replete with procedures, processes and business models that have evolved during the 20th century. Some of these processes are necessary, however many are arcane. What's clear is that in the 21st Century the "walled garden" of real estate information is gone. Consumers have unparalleled access to real estate information. This fact alone has changed the nature of the real estate "game".

MLSListings - the MLS service for San Mateo, Santa Clara, Santa Cruz, San Benito and Monterey counties - has recognized this massive power shift. Behind the scenes it has reinvented itself. It has evolved from an organization that wrote properietary, "one size fits all" MLS search software to an organization that is dedicated to serving the needs of a complex and changing real estate industry while providing maximum service to real estate buyers and sellers as well.

Earlier this year, MLSListings rolled out its "PERKS" service - a "best of breed" partner program in which MLSListings negotiates free or significantly discounted services on behalf of its subscribers.

Tomorrow, June 1, MLSListings is rolling out a third party search service on top of its MLS back end system. MLSListings' subscribers will be able to use the Tarasoft Matrix(r) software as well as the Realist tax data search software. It will mean that MLSListings supports 3 front ends to its MLS system.

For MLSListings' subscribers, this means that there is another set of information tools that they will have to support their clients in a more comprehensive way.

For consumers, it means that real estate agents using the MLSListings service will be able to provide more detailed and more comprehensive information so that they can make better home buying/selling decisions.

21st century real estate demands the best possible tools and services to help brokers, agents and consumers. MLSListings is doing just that - by reinventing itself and leading the MLS industry as well.

Best regards,

Jim Herrera

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For purposes of full disclosure, I am in charge of Subscriber Outreach for MLSListings.

FLASH: $8,000 First-Time Homebuyer Tax Credit Can Now Be Applied Toward Purchase of FHA-Insured Home http://ping.fm/iMnDz

A New Way To Look At Marketing

I thought I'd start this week with a brief video I discovered on the web. It describes the way Coors does marketing. The message here is that you should look for ... well ... you'll just have to watch the 3 minute video ;)




We need to really look after our clients. Because clients are demanding, knowledgeable and increasingly sophisticated. How are you looking at the market's unarticulated needs and unconscious behaviors? Are you looking?

Let me know what you think.

Free Hugs

Hi there!

It's been a couple of weeks since I last posted. Sorry about that. I intend to get back to providing great information about transparency in real estate; and how we can all make a difference in our world.

To start, I'd like you to watch the video below. It made me smile. It makes me remember how simple it is to help people have a better day.





I'm sure you can find one thing to help somebody today. Even if it's "just a hug".

Let me know what you think.

Jim

_____________________

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New blog post: What's a good Buyer's Agent? Please post your comments on the blog. http://ping.fm/yhpEM

What's A Good "Buyer's Agent"?

As an MLS professional, I have the privilege of working with many brokers and agents in the Silicon Valley. The real estate professional's ideal situation is one in which they have a listing (that is, they represent the seller) and they can also represent a buyer who wants that same house. This "double-ending" practice can cause potential conflicts of interest. While CAR has forms which agents must complete to disclose this type of transaction, a buyer may not understand what this means.

With that caveat, as a buyer I'd like to list a few things that I would request of an agent representing me.

First and foremost, this is not a "deal". I don't buy houses for a living so I'm probably not experienced in this type of transaction. This is one of the most important personal and financial decisions I can make. If you're more interested in "closing escrow" than in representing me, then you should take the opportunity to bring in partner who can assist me.

As a buyer's agent I'm looking for you to oversee:
• create a comparative market analysis for my potential new home
• explain to me the market conditions and the neighborhood conditions
• all deadlines in the contract
• all inspections, including home and pest inspections
• the appraisals (and be able to discuss with me the reasons for the valuation)

Additionally, I want you to help me with:
• identifying my needs in a new home. (In fact, if you have a method for doing that, you'd get bonus points!)
• scheduling property showings
• get me the latest new listings to me electronically: via email, text message and cell phone.
• getting additional listing information from listing agents (e.g., seller's disclosures)

You should also:
• help me find the right mortgage company
• sit with me and the mortgage broker to explain the mortgage commitments
• prepare a Comparative Market Analysis (CMA)
• explain to me in plain terms, what a CMA is, why you selected the properties in the report and how this affects the offer WE will make)
• review home inspection reports with me
• assisting me in presenting repair lists for sellers
• negotiate for me on all of these issues.

I know this is a lot of activity, but I'm paying for this experience.

For agents out there, it will be interesting to hear your opinion. For consumers, I'd definitely like your opinion.

This week is about planning new marketing strategies and developing analytics for NorCal real estate pro's. What are you doing for others?

Happy birthday Kelly! You'll always be my special delivery. Miss you. Love you

I'm creating a new way to produce statistics for our clients at MLSListings. It's fun to design a simple, yet flexibile mechanism.

Here's an interesting article about the swine flu threat. http://ping.fm/NEAlE

Happy birthday to Katie Herrera. She's 19 today. I hope you have a great day and year! Love you, miss you big time!

Happy Birthday to my daughter Jackie! I love you, sweetie. You're in my thoughts, today and everyday.

Q for the day: do you have balance in your life?

Find 1 way to help someone today and life will be a little better than yesterday. Who will you find? What will you do?

Finding ways to make it easier for customers to find and buy our services.

Happy day after Easter! How can we help each other today?

Hispanic Assoc. of Realtors and Affiliates (HARA) is meeting at noon today in SJ. For more info see: http://haragroup.com/

With a successful rollout comes the follow up. (And planning for the next rollout.) Beginning both processes this week.

evaluating last week's partnership rollout. Result is wonderfully positive. :D

Did you feel the earthquake? 4.3 magnitude in Morgan Hill. Get prepared. Go to http://ping.fm/OvOJI

Raising the Bar

I have the great fortune to be able to work with many real estate professionals. My job is to reach out and support them from an MLS perspective. In the past, that meant explaining how to use our particular flavor of a search engine software. However, my passion is to provide them with the tools, techniques and education to become better practitioners - people who can connect to their clients and are willing to "do what is right" even when it sometimes is not as profitable for themselves.

To "do what is right" may take a lot of soul searching. In the February 9th issue of Inman News, Kris Berg, broker-owner of San Diego Castles Realty, wrote an article: "The Weakest Link in Real Estate". In that article, she identifies the weakest link: the weakest, least competent agent." For now, I'd like to quote from Kris' article:

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Sure, as real estate agents we are regulated. We are tested, we are licensed, and we are thumb-printed. Now in California, our license numbers must appear on all of our "first point of contact" marketing materials as a nod to the concept of consumer protection, but not until June. (I guess it takes time to implement such bold, sweeping changes.) And then we are set free to roam the earth and do whatever we please in whatever way we might wish under the banner ad of delivering the American dream.

So far so good, but this is where everything becomes backwards. The familiar employer-employee relationship is replaced with an industry of anarchy. Brokers may control the boardroom, but the licensees are calling the shots. The 1099 system turns the food chain on its head. Agents have been compared to plankton feeding a sea of bigger fish -- brokers, technology companies, and a long list of settlement and other service providers -- but agents are really the hunters and gatherers (or as some might call us, the predators) upon which an entire industry relies for their share of the spoils. And it is ultimately the licensees who are making this bed in which we all must lie.

The traditional brokerages are partly to blame, certainly. We are entrenched in a backwards system of agents interviewing and hiring their "employers," and the agent's choices are limitless. The brokerages make money because of the work that their agents do, and the temptation is simply too great to strip-mine a licensed populace in the pursuit of a few, shiny diamonds. Yet it is ultimately the work of each agent that reflects on every other agent and on the entire industry.

I have spent many hours on the "higher barriers to entry" bandwagon, and rest assured that I am still occupying my seat. Argue that the free market will weed out the less adept, but I seem to recall having heard that argument before. Oh yes, the banking system. And Wall Street.

It's much more than just an issue of licensing standards. Once crowned "licensee," no minimum standards exist for job performance. There are no annual reviews, no measures for excellence other than the production board, and few consequences for bad behavior. I run a small brokerage, but I am not a corporate muckety-muck. I am first and foremost a working agent, the first point of contact, and the things I see daily from my vantage point beneath the rhetoric and on the ground continue to amaze. I see many stellar agents who hold themselves to the highest standards even while their brokers don't, but we are all only as strong as the weakest. Tough times bring out not only the best but the worst in people, and I am seeing more of the worst lately, ranging from gray-area ethical breaches to huge storm clouds of malpractice and incompetence.

Common sense can't be regulated, of course, and ethics, being subjective, can't truly be prescribed in check-list form. Laziness is not a crime, and excellence will always be measured on a sliding scale of consumer expectations. But by leaving 3 million little businesses largely unmanaged, unchecked and unaccountable, we continue a dangerous precedent.

---

Kris' article hints at the heart of how to improve the real estate industry:

• To train every agent to be their own CEO
• To demand that every agent's business activities be transparent, like a company's financial statements
• To require brokers to manage and hold their agents accountable for their activities.

This is a tall order. But a wonderful opportunity. We live in a time when people are looking for leadership and leaders who are willing to model the example of transparency and accountability.

Are you ready for this challenge?

Concepts of How To Use Some Major Social Networks

Hey there!

In this post, I'm going to link to several posts that describe how to use some of the major social network sites. The are good overall starter points and you can really benefit from taking a brief look.

eHow - How to use facebook

bNet - How to get started using LinkedIn

The following link is a little different. It shows how one journalist uses twitter for his profession.

twitter - How it's used for journalists

As you might guess when you read and review these websites, there are many ways to use social networking. How can one figure it all out?!



I am distilling these different general purpose uses and refining them for the real estate professional. We'll be conducting training classes, but more importantly, coaching solutions to help you implement social networking and get a positive return on your investment (ROI) of time, effort and money. For more information, drop me an email at jim@perceptiveinsights.com.

Also, take the opportunity to join the Real Estate Insights Social Network. There, you can post questions, create forums for areas of interest that are important to you. Right now, it's an experiment. I'd like any and all comments or suggestions on how to make the network something that real estate professionals, real estate consumers and real estate activists can use.


Best,

Jim Herrera
______________________________

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http://www.perceptiveinsights.com

And follow me at the following networks:
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How to Manage Your Social Profiles and Create Virtual Business Cards

Just a really quick post about managing your social profiles. In my class, "Let's Get Social", I mention some tools that will help people manage their social networks. Here's an article in Mashable that has links to those sites as well as some more information that would be useful.



Of course, if you have any questions, please drop me an email.

Best,

Jim Herrera

______________________________

Subscribe to my blog and podcast at:
 http://www.perceptiveinsights.com

And follow me at the following networks:
 http://profile.to/jimherrera
 http://www.linkedin.com/in/jbherrera
 http://jbherrera.myplaxo.com
 http://twitter.com/jbherrera

Social Networking with twitter

For those of you who aren't familiar with twitter. Let me briefly explain what it is and how it might be useful for you.

According to wikipedia:

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Twitter is a social networking and micro-blogging service that allows its users to send and read other users' updates (known as tweets), which are text-based posts of up to 140 characters in length.

Updates are displayed on the user's profile page and delivered to other users who have signed up to receive them. Senders can restrict delivery to those in their circle of friends (delivery to everyone being the default). Users can receive updates via the Twitter website, SMS, RSS, or through applications.

---

Rather than a full-blown blog, like this one, twitter enables you to send important business information to your clients or business contacts on a consistent and steady basis.

To start, you and your contacts need to set up a twitter account. Don't worry, it's not that difficult and it's free. Simply go to twitter.com and sign up. Once that's done, you ask your business contacts to do the same.

After you and your contact have done so, you can "follow" each other. Then, depending how you've set up your account, you and your clients will be able to automatically get each others' microblogs - "tweets".

It takes a little practice and patience, but twitter is a great way to stay in touch. I use this to stay in touch with MLSListings clients as well as people interested in how to use social networking for real estate.

If you're interested in obtaining a larger following there's a new service I'm trying. It's called tweetgetter. I just started using it myself and its starting to work already.

If you'd like more information on how to use twitter for real estate connect with me at any of the social networks below.

Happy tweeting!

Best,

Jim Herrera

______________________________

Subscribe to my blog and podcast at:






And follow me at the following networks:











A Home Is NOT an investment vehicle.

Hopefully, this doesn't turn into a screaming rant. But I needed to get this concept into the blogosphere.

Point 1
Traditionally, single family home real estate was NOT meant to be an "investment vehicle". Single family homes were meant to be ... well ... homes! Places you live in for 10, 15, 20, even 30 years. That was the tradition. That's how mortgages were originally designed.

Point 2
Most everyone has forgotten the lessons learned from "greed gone wild" of the late 1990's dot com boom and bust. Do you remember? During that time people wanted so desperately to make easy money that they were willing to drop almost any amount of money into almost any type of dot com company.

Wall Street experts were quick to point out all the problems with investing in these untested technologies. "Sure they're cool," they said, "but as you're unsophisticated investors. You'll lose everything. You should leave the investing to the professionals."

Well, guess what, this time around with the real estate bubble, we allowed the "professionals" to create these new types of investments. And as we eventually discovered, these real estate securitized investment vehicles were built upon the same type of bogus promises that the dot com companies used in the late 90's. Only the stakes were MUCH bigger. When the dot com bubble burst, individuals lost their money. When the real estate bubble burst, EVERYBODY is losing. ARGH!

OK that was a screaming rant. Sorry. Let's go back to basic here.

Back to Basics
If we look at real estate as a home - not a highly volatile stock investment - a different picture is apparent. Pricing for residential real estate have risen at a steady, NORMAL price increase. For example, let's look at the San Jose DMA. Here you can see a steady 4% increase in price over time. (Source: Zillow.com)


And, as we begin 2009 and move forward, the prices of housing will undoubtedly rise, albeit at a similar steady growth rate.

Additionally, homeowner equity is continuing to rise as seen in the graph above. (Source: Zillow.com)

As real estate professionals, educate your clients about this. A house is a home that builds equity over a long period of time. A house is NOT an investment vehicle with a 12% year over year return on equity.

If you're in the Santa Clara, San Mateo, San Benito, Monterey or Santa Cruz counties, your REALTOR(r) associations should be able to help you with these statistics. MLSListings, the MLS is always ready to help as well.

Be Your Own CEO: Online Marketing

In my first podcast, titled "Change is Here" I spoke about several ideas that real estate professionals should consider as 2009 begins. One of the fundamental principles is to "Be Your Own CEO". As part of that principle, I'd like to focus today on: "Online Marketing"

Being in the real estate market has changed over time. There was a time when residents of the country stayed in the same area and lived in the same houses for decades at a time. In those times, being a real estate professional was ALL about local knowledge.

But I believe those times have changed.

We live in a transient society. Where the average work tenure at a particular company has dropped from 20 years to 5 years; where people live in one community, go to school in a different community (or state) and live in multiple cities over their lifetime.

Local knowledge is still very, very important. But it will take more than that to thrive in the "new reality" that is 2009. This requires the real estate professional to change his/her way of marketing themselves and their local knowledge expertise. But ... how?

Essentially, real estate professionals must use "Web 2.0" applications and tools. "Well, what are these," you might ask. Let me try and give you a brief overview.

Essentially, Web 2.0 encompasses the set of tools that allow people to build social and business connections, share information and collaborate on projects online. That includes blogs, wikis, social-networking sites and other online communities, and virtual worlds.

Millions of people have become familiar with these tools through sites like Facebook, Wikipedia and Second Life, or by writing their own blogs. And a growing number of marketers are using Web 2.0 tools to collaborate with consumers on product development, service enhancement and promotion. But most people still don't appear to be well versed in this area.

The real power of these tools is not just to write about your own subjects, rather it is to get people consumers involved, inviting them to participate in marketing-related activities from product development to feedback to customer service.

How can you do that?

The Upside
One leading greeting-card and gift company has set up an online community -- a site where it can talk to consumers and the consumers can talk to each other. The company solicits opinions on various aspects of greeting-card design and on ideas for gifts and their pricing. It also asks the consumers to talk about their lifestyles and even upload photos of themselves, so that it can better understand its market.

The Danger
But with this great connection comes a potential problem. Consumers are grabbing power from companies - this means you! I would bet that most of your sales training is about "controlling the client": about the type of information they should get about a transaction to the amount of contact with the opposing agents' client.

Let's face it. Companies are used to being in control. They typically design products, services and marketing messages based on their own particular view of what people want. Keeping up with customers has meant conducting research on their needs and test marketing new products and services. Because the balance of power has favored large corporations with a lock on manufacturing, advertising, distribution and other operations, the term “customercentric” was mostly just a buzzword.

Now, though, many customers are no longer cooperating. Empowered by online social technologies such as blogs, social networking sites like MySpace, user-generated content sites like YouTube and countless communities across the Web, customers are now connecting with and drawing power from one other. They’re defining their own perspective on companies and brands, a view that’s often at odds with the image a company wants to project. This groundswell of people using technologies to get the things they need from one another, rather than from companies, is now tilting the balance of power from company to customer.

That's what's going on with Trulia and Zillow and other real estate data aggregation sites. They've recognized this groundswell of customer power and have filled the gap that traditional real estate professionals have not.

Folks, you've got to get in the game! No matter how much local knowledge you have, if you don't understand the new marketing and information sharing rules of this consumer-focused reality, you'll have a very disappointing 2009 and short career as well.

With the help of some of my colleagues at MLSListings, some experts in social media, online marketing, and successful brokers and agents around the country, we hope to provide you some clarity in this new reality. Stay tuned to this blog for updates and our podcast for brief technology concepts and techniques.

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In the meantime, here are some brief videos that will open your door to the new reality.

What is Social Networking?



"What is a Blog?"



"How To Use Facebook"

Learn More About Facebook Through its Site tour -- powered by ExpertVillage.com

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Until next time, if you have any questions, please dont hesitate to get in touch.

The "Global Village"

I was a college philosophy student and was required to read the work of great thinkers. And while I haven't been consistent in my application of the best principles of these great thinkers, as I have gained life experience I have been able to grow and change.

One of the great thinkers that I remember was Marshall McLuhan. Do you remember him? Many years ago, he coined the term, "the global village". Here's what he said:



What does this have to do with anything, you might ask. Well, for me his message describes not only how our media has changed our lives, but also points out that we need to change how we think about communicating and interacting with each other, our community, our country and the world.

For business, it means that we need to have sensitivity to others that has not been required before. In a "non-connected" world, people had to seek out business and experts. A professional could "hang their shingle" and local people would pass the word around and get him/her business.

But we do live in a connected world. And guess what? We must actively seek out our clients. with a high degree of professionalism and transparency. Oh yeah, with the tools that a connected world has provided.