How to Create A Real Estate Marketing Plan

Tips on creating your own real estate marketing plan

Creating a real estate marketing plan is of paramount importance for any investor seeking to begin a career in this industry.  There is no ‘right’ or ‘perfect’ real estate marketing plan as marketing is always situational,   flexible, and fungible in nature.  So why would I write an article on how to create a real estate marketing plan for your real estate business?  Because I want to provide for you several options and let you pick which ones will best work for you.

Before giving you actual items for your real estate marketing plan, I want to give you a couple of words of caution to think about before deciding what to implement:

1. Create a budget.  What will you spend every month on marketing?  This budget will dictate what types of marketing you will use.
2. Create a ‘time’ budget.  Marketing can take time and effort.  For example, if you’re going to place bandit signs on a weekly basis, you are committing yourself to early Saturday mornings every weekend and late Sunday evenings to pick up the signs again.  Can you commit to that time?
3. Pick at least 5.  Don’t put all of your eggs in one marketing basket.  I know many real estate investors love the concept of online marketing (as do I).  However, if you are just creating a Facebook Page and expecting to get leads, your business will fail.  For best success, pick at least 5 strategies from the list below.

Create a Real Estate Marketing Plan | Strategies

• Farming an Area- this tactic is the simplest and least expensive way to get started.  You simply drive a series of small neighborhoods in your target area and look for homes that show signs of distress.  These signs can be an unkempt lawn, boarded up windows, piles of newspapers in the driveway, weeds, etc…  Then get the addresses, find the owner, and contact them to make an offer.  This method is good because you become an expert in an area and costs very little money to do.  The only drawback is that it takes time to farm areas.
• Bandit Signs- Bandit signs are signs posted in busy intersections.  A sample bandit sign will say “We Buy Houses, Cash, As-Is” with a phone number as a call to action.  Bandit signs can be effective, but it costs money to purchase the signs, stakes, etc… and takes time to put out and pick back up.  Also, check with the local ordinances on whether or not bandit signs are illegal.
• Flyers- flyers are business size cards with the same message as a bandit sign that you place on the windshield of cars.  For flyers to work, you must use large quantities (like 500+).  The benefit of flyers is that you can create 1000 for about $15.  The downside is that it takes time to put them out and you have a low conversion rate.  If you’re starting out and you have plenty of time but not much money, then spending a couple of hours a day with this strategy could be a good way to generate leads.
• Door Handle Signs- this is a sign that you hang on people’s doors with your message and a call to action.  This is a great way for finding buyers…going to apartment complexes and hanging on their doors.  This is a relatively inexpensive form of marketing, but as you’re finding out by now, the lesser the expense of real estate marketing, the greater the time requirement.
• Post Cards- post cards are the most inexpensive way to perform direct mail.  As such, they also have the lowest conversion.  Post cards allow you to display your message in a manner that the homeowner will see without having to open an envelope.  Post cards require quite a bit of testing, not just on the post card itself, but also on the mailing list used.  However, as is the case with flyers, if you put enough out consistently, then you will have success.
• Hand written letters- handwritten letters take time to write out and costs money for the paper, envelope, and stamps, but this strategy also performs the best open and has the highest conversion rate.  This is because they look more unique and less like junk or spam mail.  When writing the letter, it’s best to use lined yellow paper and blue ink.  Keep the message short and simple.  For this strategy to work, you must commit to sending out letters consistently.
• Referrals- this strategy is effective and inexpensive.  You can develop referrals from several sources: Realtors, mortgage brokers, title agents, contractors, or even people who work in hardware stores.  When making your pitch, consider the WIIFM strategy; always make the pitch more about how it is going to benefit them to refer you business.  And also, make sure you return the favor and send them some business as well.
• Networking events- real estate networking events are great ways to meet other professionals to obtain referrals.  They’re also great ways to meet and create relationships with other real estate investors.  This is important because not every investor uses the same strategy to buy and sell a house.  Therefore, if you meet someone who focuses on short sales and you focus on subject-to, then you two can create a nice little referral network.  Also, these events are great places to meet other experts and learn from other, more experienced investors.
• Social Media- social media is the electronic version of networking or referral marketing.  However, when promoting yourself on social media sites, like Facebook, it’s important to make sure your posts are providing value rather than simply promoting yourself.  If you want to find home sellers, then provide tips on how to sell your house, how to stage a house, contract tips, etc…  Brand yourself as an expert. Then people looking to sell their houses will look for you.
• Video Marketing- video marketing is an excellent and underutilized strategy.  It’s inexpensive and doesn’t take much time.  Plus, video is the media of choice- more people would rather watch a video than read text.  You can use video to provide tips or to give a walk through of a property you are selling.  Then you can upload and promote through YouTube as well as other social sites, like Twitter, Facebook, and Google+.  As an additional bonus tip, I highly recommend having a Google+ account for SEO purposes.  Obviously G+ is owned by Google, and if you are using G+, your posts (and vidoes) will show up higher in the search rankings.
• Web sites- people love being able to search for information online.  Therefore, you want to have a very informative website that answers questions for those in need while showcasing your expertise.  I strongly recommend having something to give away (ebook, video, checklist, etc…) in exchange for their email information.  This way, you are able to contact these potential customers through newsletters and autoresponders.
• Bird Dogs- bird dogs are people who aren’t exactly in real estate yet come across real estate opportunities.  These are folks who work in hardware stores, the Home Depot or Lowes, landscapers, painters, etc…  These are people who run into folks fixing to sell their homes.  Give these potential bird dogs your business card and pay them a ‘marketing’ fee for anyone who ends up using your services.  This method can be the least expensive and least time consuming way to find motivated sellers.

Create a Real Estate Marketing Plan | Marketing ‘Wows’ and ‘Unwows’

When creating a real estate marketing plan, also think about what makes you unique and what will make your customer say ‘WOW’ and want to refer you to others?!  In my video below, I explain some of the marketing wows and unwows:

Creating and implementing your real estate marketing plan will take some time, money, and effort, but understanding your options and committing to a time and financial budget before hand will allow you to choose the methods that are best for you and produce the best results quickly.