It's a Web 2.0 World

Dorothy has just arrived in Oz, looking around and awed at the beauty and splendor, she remarks, "Toto, I've a feeling we're not in Kansas any more." The Wizard of Oz, 1939

If only Dorothy had known about the internet she may have been quoted as follows, "Toto, I've a feeling that our world has been forever changed!" So true, so true, dear Dorothy. I remember my first personal encounter with the internet. It was 1993 at the Atlanta headquarters of Novell where I and several cohorts were attending a demonstration of this remarkable new technology. True to the nature of a new technology, the demo failed. That fact not withstanding, the explanation of how the internet worked as offered by the moderator was truly inspiring. Being an old hand at online news services and email, I immediately seized upon the unlimited potential this new technology offered. We've come a long way since 1993 and networks are still prone to fail from time to time, but would anyone seriously contemplate giving up on the internet? I think not! And now, we've progressed to the second iteration of the internet, to Web 2.0. Over the years succeeding the Dot Com Bust we've witnessed the introduction of new web tools as a result of increased bandwidth resulting in the web maturing to a computing platform. Among these many tools perhaps the best recognized are; blogs, mash-ups, video, and social media. The early web would hardly recognize itself.

But, given all this progress and the consumer's propensity to move their purchasing power to the web, I still find real estate agents who've elected to end their web progress at a basic utilization of email. Agents who have failed to incorporate Web 2.0 technology into their operating platform are destined for extinction in my opinion. If you're not up to speed on Web 2.0, run, don't walk to the nearest Borders, Barnes & Noble or other bookstore and purchase for yourself any book you can find with Web 2.0 in the title. And, while you're there would you please pick me up a Venti Chai Tea Latte, skinny and extra hot?

Blind alleys

"...you can go down lots of blind alleys if the cost of doing so is low. But if you are spending a million dollars on each blind alley, you’ll be out of business in no time." Fred Wilson, Union Square Ventures (a New York based venture capital firm)

I borrowed the above quote from the Union Square Ventures website which had been sited as a link source in a blog post by Redfin founder and CEO, Glen Kelman, on the Redfin Corporate Blog (Redfin is an internet startup in the real estate space). In Glen's post he bemoans the thought process that went into Redfin's decision to change their business plan. I can well understand his angst. The real estate business is one in which we try new adaptations, new techniques, new technology in direct response to real or perceived changes in the marketplace. Often, after investing time and financial resources into these changes we find the alley we've chosen has come to a dead end. This occurrence happens daily to every business endeavor in America. Some business people give up at this point, others continue to pound their head against the dead end wall, while a savvy business person retraces their steps analyzes the problem and begins anew down an untrodden alley. Business plans are made, even destined, to change. It takes a "big man" to admit to having made a mistake, change direction, and begin again. The path to success is erratic and strewn with blind alleys bearing the footprints of those of who came and were foiled. Don't let the occasional blind alley deter you from achieving your goals.

What worked last year? What didn’t?

It's a new year. Full of promise and potential. Shiny, clean, not yet marred by the blemishes and scars that surely will mark this new year at it's inevitable end twelve months hence. Looking back to the previous year can be instructive. What worked last year? What didn't? Experience is painful, but an excellent teacher. Success leaves tracks. It can be replicated, refined, and most importantly prolonged. But, if there was a magic bullet guaranteeing success in real estate, we'd all be counting our millions while sunning on a Caribbean beach.

The practice of real estate requires constant innovation while focusing on some very basic principles. Those principles include; daily prospecting, follow-up, market knowledge, and the ability to gain the trust and respect of your clients. Prospecting, no matter the form, is most effectively accomplished when set to a daily schedule. Dedicate time for prospecting, be it telephone calls, direct mail, email, geographic farming (try door hangers, they work!), or social contacts. Turn off your cell phone and concentrate on this activity. Every contact warrants a follow-up. Get a name and an email address. It's simple and it works well for follow-up and relationship building going forward. Know your market...really know the market. Become a virtual encyclopedia of data and statistical trends in your market. Be smarter than the competition. Use your knowledge to differentiate yourself in the market. Would you do business with a banker or stock broker that didn't appear knowledgeable about their trade? All the foregoing principles will not earn you a living unless you possess and are able to project the fact that you are a trustworthy individual deserving of your client's trust. This is a quality that is developed over a lifetime. Are you a person of honest and integrity?

Have a wonderful 2009. Practice what works and keep your eye on the basic principles. Mike