You’ve hit a plateau with you lead generation in your area. Once you begin to explore other markets it is clear a new marketing plan is in order.
This is where you need to pause. Do your research. And prepare for a new market.
You not only need to check the temperature of a new market, but thoroughly research every angle about your new audience.
In order to move into and establish yourself in a new area, you first need to do your homework. We help you get the ball rolling below.
Step One: Determine Your New Audience
Expanding your plan into a new marketplace begins with defining an audience. Establishing a new audience or niche to your current client base is not as easy as shifting your gaze.
For example, if you are currently working with young families buying their first homes in an up-and-coming neighborhood, a switch to luxury homes in an upscale waterfront community won’t be as simple as joining the yacht club.
Let’s break down the logistics:
- Is there a dominant agent or agents in the community?
- Is the area already saturated?
- In other words, is there ample opportunity compared to the money you will invest?
- Do you have experience with similar areas or connections within this area?
- What are the price points in this community?
- Is the the turnover rate is over 6%?
- What type of marketing is already being done there?
- How can you deliver something better for the homeowners in this area?
To secure a profitable audience you need to spend some serious time researching the above topics. There is no sense in forcing an area after you’ve learned there are already several well established agents. Find the new market where you are a good fit, you can establish a presence, AND there is enough room for more competition.
Step Two: No Audience Left Behind
When you’re building a business and expanding into new markets, it’s important to dually expand your database from current clients while searching for that new audience.
To build your business there needs to exist a reliable (read as: money making) client base. Your existing client base is easily expanded through realizing the true impact of your database.
This database of people and past leads deemed “not ready to buy or sell” is a gold mine when paid the right attention.
One of the most common mistakes in real estate is expanding too quickly before maximizing the true power of the leads you already have. This database could be the secret to funding your market expansion after all.
Pro Tip: An easier way to expand into another market or higher price point is to have a thorough understanding of your current client bases’ next steps. Are they buying up? Moving to the suburbs or the town over with a better school system? Buying second homes?
All of these transitions could facilitate a move into a new market simply by following-up with your past clients and current database leads.
Step Three: Understand the ROI of Real Estate Marketing
How many deals are you realistically able to procure because of this plan?
Now, be honest with yourself. And if the numbers aren’t adding up, you either need to move to another audience or area, or retreat to further research.
Another common mistake we often see real estate agents make is placing more pressure on their Cost Per Lead (CPL) than the Return on Investment (ROI) of their efforts.
Your CPL can be $0.50, but if none of the leads are converting then it doesn’t matter.
Conclusion: When determining the viability of your marketing efforts, look first to ROI as the CPL can be misleading.
Step Four: Take The Market Prices Into Account
Jumping back to the example in Step One, choosing a new audience is not as simple as redirecting your gaze.
In order to earn the trust of a new market with higher price points you need to establish exactly what they need and provide it. What do you have to bring to the table at this higher price point?
Whether it is an increase in your print advertising or opening up a brick and mortar location in your new area, you must consider what it will take to create dedicated customers out of your new audience. And the higher the price, the higher the expectation.
“Trying to go into a neighborhood cold, and tell people how great you are, people don’t care. They truly don’t care. You have to bring them something of value. We’re story tellers, and so you have to go outside of the four walls, and really create that experience. Sellers want to know what’s in it for them, what are you bringing them?” — Mary Maloney
Step Five: Examine Your Follow-Up Practices
Your new audience is established. You are denying yourself the urge to sprint to a new market and leave your current market in the dust. And you are not letting CPL get the better of you.
You’ve resisted the urge to go into the grocery store hungry. After much research, planning and preparation you are ready to start budgeting and enacting your expansion marketing plan.
In order to do so, there is one last step: choosing where to store and manage these new leads.
A lead management system will manage the process, create a scalable system, and enable you and your team to achieve your goals. Whether you are ready for BoomTown or a well organized spreadsheet still does the trick, there needs to be a system in place all the same.
This way you can close the loop on your leads and begin creating the previously mentioned database. These databases will not only bring your marketing plans to life, but also enable your business expansion.