The Washington Post – Bloomberg website recently reported that Goldman Sachs Group Inc. estimates marketing spending by real estate agents at $9.7 billion this year (2015), or an average of $8,825 per-agent! When you consider that the average agent income is $43,828, that works out to a whopping 20% of net income going just for lead generation.
Meanwhile nearly every other industry spends less than 10% for marketing. So are agents just stupid or are they being taken advantage of? I say it’s the latter and I’ll show you why. Large lead aggregators like Zillow, Trulia (now owned by Zillow), and Realtor.com (Move, Inc.) have effectively gobbled up nearly every single competitor creating a near-monopoloy in real estate lead generation.
If you do just a little digging you will soon learn that over the last year alone, while creating that oligopoly, they have more than doubled prices to agents who are seemingly at their mercy. What a shame. Claiming their costs are just going up meanwhile reporting 92% revenue growth PER QUARTER to their shareholders. Why? Because they can.
I personally don’t think that agents are stupid. I think they are being ripped off.
Most agents today are between a rock and a hard place — on one side, their old stand-by marketing (sphere of influence, farming, open houses, etc.) is not producing enough business to pay the bills, and on the other side, the aggregators who have plenty of leads for sale are charging outrageous prices. Many agents feel they have no choice but to pay the usurious fees just to stay in business.
But let’s think about it for a minute. What do those aggregators really do? They take your listings and use them for bait to fish in the largest lead pool — the internet — and compete with you. Go do a Google search for real estate in your local market. Who comes up first? Your website or Zillow, Trulia, and Realtor.com? They are taking your listings, going upstream, and catching your customers and then selling them back to you at outrageous prices!
Why? Because you let them. But when you are David and you are up against a Goliath, you can’t use conventional warfare. And make no mistake, it is warfare… those companies are determined to take every dime they can from our industry and they will use their massive size to overwhelm their competitors. When you are small and up against a huge opponent, you must use Guerilla tactics.
Why not beat them at their own game? Why not make your own leads using the same methodology they use? Your size is now your advantage. You are too small for them to bother with. You are invisible to them. But if you use the same type of technology they use, you can make your own leads for a fraction of the cost of what they charge. Our typical Guerilla real estate agent, using my Ultimate Website, is generating his or her own leads for an average of $1.39 per lead while their competitors are paying Zillow over $100 each for leads.
Here is an example of Guerilla real estate I’d like to share with you. It’s an actual email I received from one of our Guerilla Realty agents who has his practice in one of the most competitive markets in the US: San Diego, California. I think you will agree that his new strategy is far better than his previous one.
“Hey guys, I wanted to share my success story with you. I hope you can use it to help other agents who are struggling or looking to increase their business. As you know, I’ve been using your system for 3 years now.
Before using your Ultimate Website I spent a lot of money on leads. I bought leads from Homegain, Reply, zBuyer, and several others. Either the leads were coming in from further and further away or they just got a lot more expensive. The “supposed” best leads in my area are now $315 EACH! And the leads often would say they were just looking or just thinking about selling.
Now I get lots of leads. Sure they’re not all listings or ready buyers, but it’s lots of good conversations. And I don’t have to worry that I’m the tenth agent to call them. Usually, I’m the only agent calling. And yes, I do get both listings and buyers from my Ultimate Website.
Your system was easy to set up both for myself and my lender. I now use a service to place Craigslist ads and I have a partner pay for it. What a difference! I now make 3-4 leads a day and only have to pay for my Ultimate Website. My best other former lead service was about five shared leads a week and cost $299 a month.
Craig gets it now. Now he is working for himself and not for Zillow, Realtor.com, or some other aggregator. Now he gets to keep that huge slice of the pie he was paying out to buy leads. And the leads are better because he is not just one of a dozen hungry agents calling those customers. Because he makes his own leads, he is the only one calling them. No wonder he is excited!
Guerilla Real Estate is Making Your Own Leads.
Why pay Zillow or Realtor.com for something you can do for yourself with very little effort?
|Market Capitalization||$5.26 Billion||$841 Million||What’s that?|
|Quarterly Revenue||$387 Million||$154 Million||Less than that!|
|Quarterly Revenue Growth (YoY)||92.1%||50%||Prices lower than they were in 2004!|
|Cost per Lead||$100-300+||$100-300+||$1.39 average|
So what do you think? Do you feel like joining the ranks of Guerilla agents and start keeping your hard-earned money instead of handing it out to big companies who somehow managed to weasel in between you and your customer? That’s what I do, and I know that is what lots of other agents are starting to do. Take a minute to check out the cost breakdown above and see exactly how you can beat them at their own game using Guerilla marketing. Then check out our unbelievably low price for the Ultimate Website and do your own math. Come join our Guerilla Realty army and let’s beat Zillow at their own game!