It’s likely you’re a marketing manager/specialist for a brokerage. Maybe you’re a young agent with a passion for tech and marketing. If you’re chasing tenants around in a prop management company, that’s great too.
You’d be helping with research and writing for the Geek Estate Mastermind as well as for several clients of Geek Estate Labs (we write content for several companies in the space).
Requirements:
Passion for real estate tech.
Writing experience a huge plus.
Hungry to learn.
Roughly 5-8 hours a week to start.
Get in touch if that sounds like it’s an opportunity that’s up your alley.
I won’t spend $15 on a bottle of liquid stevia at Amazon.com without checking customer reviews.
It would be an understatement, then, that it blows my mind that a guy wanting to sell his house (his HOUSE, for pity’s sake) picks the first agent that comes along.
After all these decades, real estate consumers still find the pool of agents in their town interchangeable. “You’re all alike” is a statement that deserves a slap in polite society, yet people think nothing of using it to describe real estate agents.
So, how does a knowledgeable, hard-working, awesome customer-service-providing agent combat this?
By getting your clients to do it for you, via real estate testimonials (or, reviews as they are more commonly known).
For a digital marketing platform that makes it easy to gather and display your best testimonials, learn more about LeadSites.
Real estate testimonials are critical in 2019
With the proliferation of online review sites, the “oh-I’ll-just-pick-the-first-agent-that-comes- along” tendency will hopefully change. We know from studies that it’s started.
BrightLocal.com, for instance, finds that 89 percent of consumers age 35 to 54 (which includes the average age of buyers and sellers) read reviews for businesses.
Granted, most of them read reviews for hotels, restaurants and doctors. Only about 15 percent of those surveyed claimed to have read reviews for real estate agents.
But each time a new review site goes online and as millennials age, expect that percentage to climb.
You can bet your competitors who use testimonials on websites and in marketing materials understand their power. You should to.
Do it the right way
“You can even include a little “Thank You” gift card for each positive review posted – a good way to incentivize clients at a low cost to you!” says a guy whose website site offers “real estate agent training.”
Another advice giver tells agents to send an email to clients stating the following: “Happy with my service? Leave me a review on _______ with a direct link to your review site of choice.” She then goes on to also advise giving a gift in exchange for a testimonial.
Here’s another: “Motivate Clients to Leave Feedback” followed by a list of things to bribe them with.
The first problem with all of this advice is this: Would you trust real estate testimonials from someone who was incentivized, motivated or otherwise bribed to leave it?
For instance, for a long time Amazon.com didn’t reveal which reviewers were incentivized. Over the past couple of years, however, they’ve been complying with the law and we can now see who was paid or otherwise compensated for their reviews.
I skip right over those, don’t you?
Second is that the aforementioned advice to real estate agents is in opposition to both the terms and conditions of many review sites AND federal law.
And they put teeth behind the warning. Back in 2015 they popped AmeriFreight, a car shipment broker, for posting customer reviews on its website while “failing to disclose that the reviewers were compensated with discounts and incentives.”
And, they’ve since dragged numerous other businesses to court for the same infraction. It’s a great-big hefty fine if you’re caught, plus years of having to report your marketing methods to the court.
Real estate testimonials done right – See how Bragwall makes gathering and sharing reviews easy.
The various review sites have their own set of rules, in addition to federal law:
Google – The search giant prohibits using reviews as advertising vehicles. Don’t post your email addy, phone number, links to your social media pages or to your website in the reviews.
Google also prohibits discouraging negative reviews or soliciting positive reviews from your clients, offering money in exchange for reviews and soliciting reviews in bulk.
Yelp — Outright forbids asking clients for a Yelp review. “Business owners should not ask customers to write reviews.” They also warn “Don’t ever offer freebies, discounts, or payment in exchange for reviews.” Learn more about Yelp’s terms here.
Zillow – It cracks me up to read Zillow reviews. Apparently, every single real estate consumer had an absolutely brilliant experience with their agent because anything less than five stars for agents is practically unheard of.
Would you trust this site’s reviews?
About as much as you trust their Zestimates, right?
At any rate, Zillow accepts reviews from anyone with a heartbeat, solicited or unsolicited.
Other things to consider about real estate testimonials
Like most online content, testimonials are only as good as their recency. If you aren’t consistently posting fresh reviews, you may lose business to the agent who does.
Bright Local finds that the number of consumers who only “take into account reviews written within the past two weeks” skyrocketed from 18 percent in 2017 to 40 percent in 2018.
An unsigned testimonial, or one signed with first and last initial, has the potential to create distrust in the viewer. Don’t use them.
Always ask permission from a former client to post their review but never ask him or her to give up intellectual property rights to the content in the review. Oh, and get that permission in writing (or via email) and keep a copy in the client’s file.
“If you see a good testimonial for your product on another site, don’t just copy and paste it onto your own website,” warns legal professional Leah Hamilton at NeilPatel.com.
“Most review sites have a clause in their Terms of Service stating that user-generated content (such as reviews or testimonials) is owned by the user and licensed to the website.” Instead, she recommends linking to the site’s page where the real estate testimonials appear.
Now that you understand real estate testimonial best practices, learn how to set up a Brag Wall on your Easy Agent Pro website.
Easily get your best reviews to your leads with LeadSites. Here’s how it works.
Want more leads? Here are 16 tips that get more traffic to your website.
Having trouble earning your leads’ trust? Here’s why:
That little pop-up box that forces your real estate website visitors to cough up their contact information if they want to continue browsing your IDX is but one way to capture real estate leads.
Apparently, people don’t mind being forced to do something in exchange for information.
There are nicer ways to get what you need out of them, though. Less-alienating ways. After all, there are lots of other agent sites in town where the consumer isn’t forced to register.
One of the ways to capture email addresses is by offering in-depth and valuable information on the real estate process they’re about to enter. A real estate e-book is the ideal way to do that.
For an all-in-one digital marketing campaign that won’t let you down, consider LeadSites.
Why a real estate e-book?
Writing a book, even if it’s in a digital format, is a brilliant way of establishing yourself as an expert in your niche.
“We worked closely on the collaboration,” Minnesota broker/agent Kris Lindahl explained about the freelance writer he hired to write his e-books.
“She nailed it. The book sounds like I wrote it – even my wife was amazed at how she captured my voice,” he said.
Back in the days when short sales were the norm, he used his first e-book to educate potential and actual clients on the process. Because he’s listed as the author, “The book enforced my brand as a short sale expert,” Lindahl recalls.
Lindahl went on to create several other e-books before publishing actual branded, printed books that he hands out to listing clients.
Establishing your real estate authority and reinforcing your brand aren’t the only reasons to consider e-books for real estate lead generation.
Your e-book can act as an incentive to opt-in to your mailing list, beefing up your email marketing campaign. Use it as a social media giveaway or a prize for the winner of a Facebook contest.
Finally, since there is no better client than an educated one, use your e-book as part of your seller/buyer counseling program.
How to write your real estate e-book?
The most important element of a successful real estate e-book is that it isn’t “salesy,” but informative. Sure, slap your branding on it wherever possible, but the text isn’t the place to promote how awesome you are, unless you can do so subtly.
Lindahl says that his e-books aren’t “salesy,” at all. They are “straightforward, good, solid information. I get a lot of requests for” them.
This doesn’t mean you can’t sneak in examples of your brilliance. Instead of outright boasting, use your success stories as examples of points you’re making.
Lock your new e-book behind a contact form – easily collect lead data with LeadSites. Learn more
For instance, Wisconsin broker/owner Jolenta Averil once sold an impossible-to-sell home after the previous agent held the listing for a year.
The house didn’t have a front door.
She successfully sold the home, in just a couple of weeks of listing it. If she were to write an e-book for sellers (she chose to use a case study instead), she could use this listing as an example of how to sell the hard-to-sell home in a real estate e-book targeted at sellers.
The logistics of writing a real estate e-book
Grab a free e-book template from Hubspot.com(and also tips on creating it, here) or LucidPress.com or, if you don’t want to write an entire e-book, customize one of Easy Agent Pro’s free e-books.
Another way to get around the I-don’t-have-time-to-write-and-I’m-too-cheap-thrifty-to-hire-someone dilemma is to pay for a service (such as Beacon) which turns your blog posts into an e-book.
Once it’s ready for prime time, you’ll need a way to get the e-book to your audience. If you make it available to all, via a link on your website, it loses its lead-capturing power. A squeeze page, on the other hand, is just the vehicle. Learn the process, right here on Easy Agent Pro.
Real estate e-book topics
The aforementioned re-purposing of blog post content is an easy way to create a real estate e-book. Take all of your seller posts, for instance, and combine into one e-book.
Or, go ultra-niche with your e-book and offer information on:
How to go from renting to owning
Getting Help with the down payment in [City]
Staging and curb appeal
The mortgage process, from A to Z
Buying a condo in [city]
How to sell a home in winter
Take a trip into your blog’s archives and you’ll find a ton of e-book topic ideas.
Or, give them information on what they are truly interested in right now. A couple of weeks ago we showed you exactly what Gen X sellers who are going to also buy are looking for when they Google for real estate information.
There ya go – instant e-book fodder
Market your real estate client e-book
“We follow up with the people [who downloaded his e-book] monthly,” Doylestown, PA agent Al Ferraguti said. Which is excellent advice, considering the time and possibly money you’ll spend creating the e-book.
Consider setting up a Facebook ad campaign to drive targeted traffic to your squeeze page.
We’d love to see your finished product and hear how it’s working for you.
For a digital marketing platform that makes every step of the lead capture process easier, a LeadSite is all you need. Here’s how it works.
The end of 2018 saw the national average rent go up to $1,419 per month, which stands for an increase of 3.1% compared to the previous year. As an overall trend, the highest spikes in rent prices were registered in small cities, three of which witnessed double-digit increases: Odessa, TX, Midland, TX, and Reno, NV. […]
[Note from editor: We publish a Weekly Transmission for Geek Estate Mastermind members that consists of long form articles covering the spectrum from shipping container co-living spaces to the battle for listing acquisition in the first iBuyer world war. Below is a preview of this month’s sample Transmission, which is delivered in full via email.]
JANUARY MONTHLY TRANSMISSION
Enough about looking back on 2018. We’re into the new year, with Inman Connect NY just around the corner. If there’s one central theme to the coming year, I’d classify it as M&A. That means, as Pete Flint (GE member) says, “Brokers buying brokers, brokers buying small tech, big RE tech buying big and small tech cos. Brokers want their own tech, founders want a safe port ahead of a housing downturn and big tech is going deeper and broader in the category.”
This month’s Monthly Transmission dives into more specifics and offer predictions for 2019.
Accessing the full article: To receive the Monthly Transmission & Radar going forward, please ensure “Receive Monthly Radar/Transmission” is set to YES in your email settings. The full versions are NOT posted on the blog.
A PRIVATE GROUP OF INDEPENDENT THINKERS, FREE FROM SPONSORED MESSAGES, SALES PITCHES AND NOISE
There are four parts to membership:
Long form articles covering the spectrum from shipping container co-living spaces to the battle for listing acquisition in the first iBuyer world war (Weekly Transmission). A sample Transmission is here.
Special reports (our first is a category review of Small Landlord Prop Mgmt Software).
Networking opportunities with 145+ innovators from across the globe through the private forum & in-person gatherings.
Membership is $97 / quarter
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We deliver an exclusive, objective lens into the trends, companies, people, and ideas shaping real estate technology with thought-provoking analysis and conversations that keep you inspired every week.
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We enable discovery and meeting others with shared interests online and in person (whether they live near you or are traveling to the same conference).
We’re looking for the best and brightest founders, operators, innovators, & investors in the industry…
Reminder: To receive the Monthly Transmission & Radar going forward, please ensure “Receive Monthly Radar/Transmission” is set to YES in your email settings. The full versions are NOT posted on the blog.
At the end of 2018, the national average rent reached $1,419, which shows a 3.1% year-over-year increase, according to apartment data from Yardi Matrix. The largest rent increases were registered by small cities, with Odessa, TX, Midland, TX, and Reno, NV the top three with the biggest jump in rents. Overall, only 8 out of […]
In our latest real estate tech entrepreneur interview, we’re speaking with David Anderson from LionDesk.
Without further ado…
What do you do?
Hi, I’m David Anderson, founder and CEO of LionDesk. At the core, LionDesk is a customer relationship management system (CRM) that makes it easy and affordable for sales professionals to connect, communicate with, and close more leads. Most popular features include video email and texting, automated lead follow up, task reminders and database segmentation. What people may not know is that LionDesk is an open API platform meaning that it integrates with 100’s of the best business building and management tools so professionals can run their entire business from one system.
What problem does your product/service solve?
LionDesk is the solution for any sales professional who is frustrated with leads falling through the cracks, wants to stay top-of-mind with their database, and wants a system that reminds them what to do each day to stay focused on the highest revenue producing activities. LionDesk gives them a system that automatically follows-up with incoming leads, consistently sends relevant messages to customers through email and text drip campaigns, reminds them of important tasks to take care of each day and much much more.
What are you most excited about right now?
We’ve entered into partnerships with the largest MLSs in the country who are now offering LionDesk as a member benefit. This means that agents all over the country will be able to take advantage of a special MLS plan before determining if they’re ready to take their business to the next level with our Pro Plus plan.
What’s next for you?
We are constantly adding new functionality into the platform to help sales professionals maintain a consistent pipeline of leads, speed up the conversion timeline, and keep their business organized. We are about to launch version 2 of LionDesk in Q1 2019 that will be faster, more feature rich and a new user interface. This is a very exciting time for LionDesk users.
What’s a cause you’re passionate about and why?
We recently partnered with Sherry Chris, president and CEO of Better Homes and Gardens Real Estate to support a charity we are both passionate about. It’s called New Story, a certified non-profit organizations that builds homes and sustainable communities for the people of Ahuachapan, El Salvador. We are honored and committed to donate enough money to build at least two houses.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
There are about 49 weeks left in 2019. If you post to Facebook only once a week, this means you have 49 chances to generate Facebook real estate leads.
Coming up with topics is a toughie, but we’ve done a lot of the heavy lifting for you by compiling a list of 49 post ideas to assist you in your Facebook marketing for real estate agents.
Ready for a real estate website that makes digital marketing easier? Learn about LeadSites and get started today.
Does it go without saying that most of these topics should be in blog form first and then shared to get Facebook real estate leads?
We hope so, because, if done right, your Facebook posts will drive traffic back to your real estate website, where folks will want to engage with more of your content and hopefully become a lead.
Below are a mix of topics (which is exactly what you should be posting to social media), from general to local and many don’t have anything at all to do with real estate.
We even point out some brilliant sites on which to start your research or find inspiration for many of the topics.
Facebook marketing for real estate agents is a lot easier when you know what to post. So, let’s go!
Local topics to generate Facebook real estate leads
Kitchen trends for 2019 – Elle Décor and HGTV can help you out here (by the way, it’s also one of the most shared topics on Inman.com right now).
Housing market news (rates on the rise? New home starts picking up?) Check out HousingWire.com,
Local housing market statistics (homeowners LOVE this stuff). Dig into your MLS for info. Remember to make it readable for the average consumer.
List of restaurants in your market where kids eat free. Get inspiration here.
Create a perfect date night scenario, like this one at Lake & City Homes.
Monthly or weekly event calendars. Also check out this one at RealEstateSpokane.com.
Home repair and improvement tips – Brainstorm a list of home improvement projects that are popular with homeowners. Ideas include flooring, windows, fresh paint and landscaping. Forbes has a list of popular projects and you’ll find more ideas at familyhandyman.com.
Preparing to sell – which improvements/repairs should be made? We wrote one for your clients that you can check out at leightonrealty.com. Do you counsel your listing clients to get a pre-sale home inspection? Check for clouds on the title? Stage?
Posting to Facebook is a breeze with a LeadSite – Automate your social media so you can get back to running your business. Learn more
What makes your neighborhood special?
Highlight a different local non-profit once a month.
Neighborhood descriptions. You’ll find examples online, such as this one at PropertiesinSiliconValley.com.
Every year, Pantone releases its Color of the Year. Post a swatch and ask your followers what they think of it and ask for feedback on their favorite paint colors for the both the interior and exterior of a home.
Share the latest smart-home technology (why should they have a smart lock, what a smart thermostat can do, etc.)
Visual posts to get Facebook real estate leads
Switch it up occasionally by posting infographics.
Hold charitable or client appreciation events? Take lots of photos, post them and don’t forget to tag who is in them.
Motivational quotes, all gussied up Pinterest-style, are immensely shareable. Make your own at Canva.com.
Keep an eye out for new real estate-related studies, such as those from NAR. Share some of the statistics (might make a great infographic).
Interview or invite your vendors to guest post. An explanation of the lending process from your preferred lender, for instance or what happens during a home inspection from your home inspector.
What interests your current clients?
Pay attention to the questions you get from your clients and answer them.
Take photos of different landmarks in your town but crop them so they are barely recognizable. Hold a Facebook contest where readers guess which landmark it is. You can run this one monthly and title it something like “How well do you think you know [name of your city]?”
The 3 least expensive homes on the local market.
The 3 most expensive homes on the local market – Check out this post on MiamiRiches.com.
What you love most about your town.
What are the most popular brunch spots in town?
Post a piece about FSBOs and ask your Facebook followers, “Would you ever buy a for-sale-by-owner home? If so, why?” We know they think they’ll get a bargain, so you can have fun debunking the answers.
Plan the perfect Mother’s/Father’s Day in your town. Here’s one to get you going.
The Insider’s Guide to [City name’s] Best [pizza, places to buy kids’ clothes, nightclubs, places to work out, etc.]
Congratulate your clients’ successes selling or buying a home, or overcoming a real estate obstacle, with a photo of them posted to your Facebook feed. The Twin City’s Kerby and Cristina love sharing their clients’ photos.
Take some of the weird “holidays” and localize them. The Unity Home Group in Anchorage has inspiration for you to get started with this one and you can find a list of these holidays, here.
Nothing like a good laugh to get the Facebook real estate leads
Post funny real estate photos and ask for a caption. Check out this one from “Salt Lake’s Favorite REALTOR,” Dustin Brohm.
Americans are crazy about celebrities. Post about some of the latest celebrity purchases and sales. “What the Rich & Famous Look for in a Home,” should spark some ideas for you and check out therealdeal.com for celeb real estate news.
Those weird holidays we mentioned? Post about “National Pet Day” and ask your followers to share photos of their pets, or on “National Day the Music Died Day” (February 3), ask folks to post which ear-worm song they wish would die.
If you’re still filling your Facebook feed with listings, knock it off! Engagement is the name of the game when generating Facebook real estate leads.
Especially as a vendor approaching the real estate industry. Having done this a few times for various levels of the industry (and as a buyer from the broker side), either at Trulia, RealScout or now at LocalLogic, it’s always a fun conversation to dig into the complexity of pricing within the real estate space. I don’t know what interest is out there for this topic, but as a sales leader in the real estate industry for over 17 years, I wish someone told me this stuff long ago. So hopefully this will help both brokerage leaders and their vendors arrive to better conclusions on pricing.
Price models, as much as value propositions, can be the reason a brokerage doesn’t purchase necessary tech, or the reason a start-up fails. On both ends, there are things to weigh. Pricing in real estate tech has taken many flavors. My goal with this post is to help with many negotiations —and hopefully save people and their companies from wasting valuable time.
Here are several models for pricing in the real estate industry. For the most part I am positioning this towards enterprise sales; in some cases it may resonate for agents.
Pricing By Agent (license/user):
What is it: Pricing based on total agent count. Usually seen with software or SaaS businesses like a CRM, etc.
Pitfalls: The 80/20 rule is alive and well in real estate. This pricing model makes it very difficult for brokers with already thin margins to provide good tech to their team. For example, a broker with 100 agents, on average, only has 20 or maybe 30 agents that are truly profitable contributors that incentivize the broker to provide more tools. Yet these are the same agents who are “capped out” or on high splits. A broker may opt out of technology they need because this pricing model is unfriendly to their business model. Other things to consider are part-time agents, or agents on the “books” that don’t sell, like assistants. Makes for messy bookkeeping and difficult negotiations with the buyer.
Best Practices: In fact, pricing by agent may ONLY work if the broker has a “tech fee” model where all the agents pay in—or some pay in to tiers for group rates. This allows the broker to be a partner and add value to the agent relationship. For some companies, I have provided licenses to all users, while discounting the “working/active” agent count, OR have priced only on transacting agents and given newer/non-transacting agents software for free (at times with a limited service).
Pricing by Office:
What is it: Pricing based on office count.
Pitfalls: Difficult for sprawling companies. Also weird for the vendor if one office has 500 agents and the other has 20. Getting the price point right can be confusing. What do you do when you get to virtual offices?
Best Practices: The only way this makes sense is a shared resource that may be physical in an office—say a 3D camera, and the software license that powers it. I have seen SaaS companies that aren’t pursuing massive revenue goals also price this way as a way to avoid agent count arguments. However, I would advise against this model because too many variables exist among physical offices.
Pricing by Listing:
What is it: Pricing based on listing count, usually for a time span.
Pitfalls: Okay, this is much easier for a broker to count the cost against (assign ROI). But do you count MLS listings or just company-owned? Do you count listings on the market for one day or do you snapshot the last 12 months and price accordingly?
Best Practices: The latter is likely the best call (annual listing count) and is the way many listing marketing services price today. This allows the broker to recoup costs since most listings will sell, but profit margins are tight. Increased costs here often get passed down to agents or recouped via some kind of fee. NOTE: A listing in NYC and a listing in Albany, NY have much different ROI implications. Pricing by listing should take into account median list prices for areas served.
The “Razor” Approach:
What is it: When a software or service is provided cheaply, or for free at an enterprise level, but upgrades or usability has a pay wall or limit.
Pitfalls: Broker gets the razor for free or a low flat “access fee” or bulk license fee which is stable, and the agents pay for the “blades.” In some cases the vendor and the broker split upsell fees. In that case, two parties want to extract value and are exerting pressure and agents can feel pressure from both sides to buy something. This can make for overwhelming sales pitches and meetings that agents don’t want to go to (which is already a problem). Brokers have not historically shown that they are a great sales channel (on their own).
Best Practices: In this model the vendor truly adds value to their clients’ bottom line from whatever value the tech is bringing and the revenue from shared success—difficult for the vendor to manage, but financially friendly to the client. The main risk for the broker is agent burnout. I have seen situations where there is great alignment from the broker and the agent, with a plan for communication and a well-thought out launch plan. For example; pre-marketing -> soft launch -> focus on success with key early adopters -> Launch -> marketing success internally and then continuing the cycle. Don’t forget webinars, handouts and live trainings. Like I said, more burden on the vendor, but if the product actually works, you can see great adoption and sales. This requires a true partnership between the vendor and broker to work. Great for SaaS models that require agent participation.
The Success/Referral Fee:
What is it: Free software, lead or service in exchange for a fee.
Pitfalls: Less common, but still around. It just lends itself to a lot of arguments and requires trust and accountability—and lawyers. In this model, services may be provided for free in exchange for a portion of the success fee. This is less common due to RESPA, etc. An example is a company sending a listing lead for a referral fee (paid if the company gets the listing or sells the home).
Best Practices: This is not very common from a true vendor. And as mentioned above, this is rife with issues of legality. Better off to charge a flat lead fee and be fine with it. Some states may require a brokerage license to collect a referral fee.
Free (Freemium)
What is it: Completely free level of service. Possible upgrades at certain level(s) of use.
Pitfalls: Nothing is truly free. A favorite quote floating around Silicon Valley is, “If it’s free, the product is you”. Meaning, your data or interactions are providing value to the platformin exchange you are receiving some value. A great example of this is posting on a listing portal. Your listing being there is free, but they get to make money around your data. In exchange, you get the marketing ability associated with that brand. This creates distrust at times, and can embitter early adopters because, as value increases in the platform, the freemium bar moves farther and farther away. Any early user of Trulia/Zillow likely remembers a time when it was $99 for unlimited featured listings on the platform, or when it was totally free to be the listing agent on your own listings.
Best Practices: Know what you are getting into. Vendors need to be transparent. Everyone is in business to make money, so establish early adopter benefits that last. Inevitably, contracts can be altered, but work with the vendor to establish “friendly fences.”
Flat Fee / Monthly Fee
What is it: Fixed price, usually based on cost/value pricing models. Cost based pricing means that the vendor assesses the cost of creating the tool or service, and adds a layer for profit. Value based pricing, takes less into account the cost of creating the tool or service, and more into the ROI or perceived value received by the buyer.
Pitfalls: Most vendors aren’t going to tell a broker their costs to create the service or tools or their profit margins. For SaaS there is a high cost up front in creating the tool and service, often recouped over a volume of subscriptions. I think these pricing models are hardest for a buyer to understand – especially cost based pricing models. At the end of the day, ROI or Value based can be the easiest to explain and most common. This is especially true If the product can directly be tied to a metric (leads, closings, recruitment, traffic, etc).
Best Practices: In this model you should take into account the avg. listing price point per customer, or market as a way to balance your pricing per market. It can annoy a client to know that the same service somewhere else is cheaper, but logical customers understand that the implications of their market typically impact price – i.e. $1M avg market vs. a $250K avg market, usually has pricing that scales similarly.
Negotiating deals – besides pricing, you also need to know where you can negotiate. Here are some recommendations for both sides.
Contract Terms:
Cancellation clause: As a vendor in this space for years, and as a broker tech buyer early in my career, there was one clause I loved to ask for—and provide. I called it the “Good Neighbor” clause. This clause allows both parties a mutual cancellation with 30 days notice. Sometimes I packaged this in the first 90 days, or even the first year. These kinds of terms establish trust on both sides. If a vendor fails and can’t cure in 30 days, you can leave. And for the vendor, if a broker doesn’t deliver on expectations, pay their bills, etc, you can part ways as well.
Delayed Payment: Some vendors don’t need to start billing day oneIt doesn’t hurt to ask for a month free vs. a discount. For example, sign a 15-month contract so you have 3 months to ramp up your agents. Note, you may lose your cancellation clause or need to establish principals to cancel within the first 90 days.
Bulk Payment: Some vendors value cash, especially early stage startups. Offer cash payments, in full for discounts. (watch cancellation clauses here)
Price Protection: Love your vendor? Negotiate a longer agreement with price protection. Lock in 2nd, 3rd, 5th, year pricing in advance—try to get upgrades in too.
In closing, I hope this helps everyone get to the best answer and help our industry transform into the future. I tried to be as inclusive as possible, but I may have left some strategies out by accident. If you think of something I missed or have other thoughts, please leave feedback below—and share this if you found value in it.
This stand-alone Spanish courtyard bungalow is nestled into a hillside in coveted Echo Park. Stylish, updated and featuring a bright open layout with lots of original 1920’s charm. The sunny kitchen has been refreshed with butcher block countertops, new cabinetry and elegant Spanish tile. The bathroom has modern tile backsplash, penny tile floors and period fixtures. The bedroom flows into a sunroom bathed in light from three walls of windows. A perfect place for lounging, working and just enjoying. Original wood flooring runs throughout. The shared tiered patios feature panoramic views of Hollywood Hills and beyond, vegetable garden beds, a lemon tree, dining areas, and a community garden shed. Amenities include a private garage and in-unit laundry. Walk out your front door for your morning coffee at Woodcat, brunch at Ostrich Farm, or happy hour at Little Joy, Short Stop, or Trencher. El Compadre located at the end of the street. Property features landscaped grounds with multiple patios. Intimate 4-unit community.
This is a TIC sale. All 4 units are being offered for sale for the first time (2 are under contract). For more information on Tenants-in-Common (TIC) ownership, go to: www.therentalgirl.com/tic/about. TIC’s are a great option for 1st time homeowners or entry-level buyers, and are rapidly emerging in LA! Financing available – with as little as 10% down thru Sterling Bank, Henry Jeanes, HJeanes@sterlingbank.com. Call or text Liz McDonald 323-313-5780 for more info or showings. Listing agents have closed 22 TIC units on the eastside in the last year, so please call us if you would like more information on what TIC is and how it works.
Details
1414 1/2 Sutherland St.
1 BED/ 1 BATH
SQUARE FEET: 946 SQ/FT
LIST PRICE: $525,000
Off Street Covered Parking
HOA Dues $225/month
For more information, contact Listing Agent:
Liz McDonald, Broker TRG Realty Company, Inc.
The Rental Girl Sales
323-313-5780 Cell liz@therentalgirl.com BRE #: 01449897
View The Rental Girl’s current properties for sale HERE
Visit Andy Sirkin’s website for more research on TIC sales HERE (Andyis the TIC attorney who pioneered TIC sales in the early 80’s in San Fran. His website has a wealth of info on TIC ownership).
Interesting in purchasing a TIC? Contact an experienced TIC Realtor®
Elizabeth McDonald, Broker & TIC Specialist liz@therentalgirl.com TRG Realty Company, Inc. The Rental Girl 323-313-5780 / Cell BRE Lic #: 01449897
The Rental Girl (therentalgirl.com) is a full service Real Estate brokerage specializing in residential leasing and sales. We have been serving renters and landlords since 2004. We work with thousands of Los Angeles renters each year, and many of these renters are qualified to buy, but can’t afford or find a home in a neighborhood they want to live. In 2016, a client of ours introduced us to TIC ownership and we saw immediately how many renters and entry level buyers in LA could benefit from a TIC market here. We met with Sterling Bank, who was working actively to pioneer a TIC market in LA, and other San Francisco vendors. And so began our research on TICs. Since then, we have helped bring many TIC units to the market, and we have many new TIC communities coming soon. With every new TIC building that hits the market, more renters, landlords and realtors are discovering TIC sales and the TIC movement is growing rapidly. We love to share our accumulated knowledge, and support our real estate colleagues, landlords and renters and the TIC community.
Beyond seeking operator perspectives for the Mastermind, Geek Estate is also looking for a hungry young professional to help with research and copywriting.
In our latest real estate tech entrepreneur interview, we’re speaking with David Anderson from 
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Thanks to David for sharing his story. If you’d like to connect, 
Pricing is never easy.
