What Is Your Technology Investment For 2015?
If you ask the average real estate broker or agent what their technology investment is for 2015, they will tell you something like "as little as possible". While that sounds logical at first, nothing could be further from what you need to do if you want to turn technology from an expense to an investment. From our viewpoint, your technology should be providing you a return of at least 1000%, or a 1 to 10 multiple, if you are using it correctly. At first glance that may seem like a crazy number but in truth we can show you example after example of elite real estate companies, teams and agents that do way better. They understand, like any business today, you have to spend money to make money and technology is probably the most important area for you to invest in for your business growth.
Lets start with some number to put in in perspective. The following calculator shows you the income you will make based on assumptions on lead conversion rate, sales price, etc.
In the example above, I said my average commission is 3%. I didn't put a split in because I want to see total revenue before split. I did not add a transaction fee. I said that our site generates 100 unique visits a day, which is very typical of our sites. From that 100 we said that we get a lead for every 10 visitors. Of those 10 visitors we get a 2% sales conversion rate. This is a very doable conversion rate. Our average sale price is $350,000. Using these assumption, the revenue generated would be $766,500 just for your website leads.
Compare Revenue to Technology Expenses
The numbers in the first example are very doable, if you manage your leads correctly, and we have real world examples of even better results. Look at the following example for an agent or team where I show a 70% split but the "Lead to Sale Conversion Rate" goes from 1.5% to 3.00%. The change in revenue is 200% and even if they had a technology spend of $80,000 they would see greater than a 1000% ROI on that spend.
Building a great site is just part of the picture. To see numbers like these you need to have a comprehensive marketing plan that addresses SEO and, most likely, you will need to be using PPC (Pay Per Click) as well. Step 1 is to make sure your website up to snuff. Has it been a been a couple of years since you installed your site? Does it need an update or is it time to start new again? Should you be adding a Property Valuation Module? What other modules will make it more attractive and useful for consumers?
Let us know if we can help you take a look at what has changed since you reviewed things, both in terms of design and features. We want you to have great results from your investment and we are here to help.
We can also take a look at your personal marketing strategy and help you build one that is going to truly meet your objectives and your budget, but remember, you really do have to be serious to do this and to get the types of return we are talking about. You need to commit to your marketing budget as well as putting best practices into place within your business to harvest the leads we will help you bring in. Also, if you are a company looking to create a technology solution across your entire organization, including office and agents websites and/or domains, contact us as well. We have some very attractive packages available for enterprise solutions.
For more information and to request our help in building a successful strategy for 2015 and beyond, email me at firstname.lastname@example.org or call me at 716-839-4628.