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Looking for a large market that purchases a wide variety of products and services and influences other prospective customers on a daily basis? Try real estate agents. According to Mal Dunn Associates, a list management and brokerage firm based in Brewster, N.Y., there are more than 1.3 million realtors in the United States, 60,000 of which specialize in commercial realty. (The term realtor identifies a real estate professional who is a member of the National Association of Realtors; if you include all real estate licensees, the number jumps to 2.6 million.) While real estate agents are buying and selling property, they’re also buying products for themselves, their businesses, and their clients. Furthermore, they’re in contact with clients who are in a buying mood—so if real estate agents like your offerings, they may become your brand evangelists.
Understanding the Market
To market to real estate agents, it helps to understand what they do and how they do it. Real estate agents do more than buy and sell real estate for commissions; they also have a thorough knowledge of the communities they serve so they can recommend locales that fit their clients’ needs. They’re familiar with tax and zoning laws, and they know how to get financing for their clients. Agents also determine appropriate prices for the properties they’re selling and help both buyers and sellers negotiate costs.
Because real estate agents usually are independent professionals, they’re savvy in all aspects of running a business. They often have home offices with all the necessary supplies and equipment, and Internet connections since property searches are now conducted online.
Because real estate agents have to be available when their clients are, many of them work nights and weekends. They’re often on the go, driving from property to property. According to statistics provided by Mal Dunn, the average age of agents is 45 to 50 years. More than 80 percent of agents are college educated, and 70 percent are married. Fifty-five percent of real estate agents are female.
Real estate agents’ jobs are affected by the economy; when economic activity declines and interest rates rise, property sales fall. The Bureau of Labor Statistics states that the median annual earnings of salaried real estate sales agents, including commissions, were $35,670 in May 2004. The middle 50 percent earned between $23,500 and $58,110 a year. The lowest 10 percent earned less than $17,600, and the highest 10 percent earned more than $92,770. According to Stephanie Singer, who oversees consumer affairs for the National Association of Realtors, the median income for realtors in 2004 and 2005 was $49,300.
What They Buy
What products and services do real estate agents buy? “Everything,” says Singer. Since the market for realtors alone is 1.3 million strong, their needs are wide and varied. Says Frank Sibley, publisher of Realtor Magazine, “You can define the businesses that sell to them in two ways: the endemic businesses whose business is sell to the real estate industry, and then the non-endemic businesses that can sell anywhere but, for marketing reasons, they decide to target real estate agents with at least part of their advertising.”
Some of the common goods real estate agents purchase include corporate gifts such as flowers, apparel that looks high-end but without the hefty price tag, magazines and car rental services. Because agents are always on the run, mobile products like cell phones and PDAs are also good sellers.
Real estate agents are independent contractors, meaning most of them have home offices furnished with computers, office furniture and office supplies. In fact, says Sibley, most of the advertisers in Realtor Magazine, such as Dell and HP, cater to small/home business owners.
Every day real estate agents are in contact with people in search of new homes—and with new homes come new appliances, furniture, décor and other home improvement products. “The big box stores like Lowes and Home Depot advertise [in realtor publications] because they know that when you buy a home, you buy a lot of stuff to put in it,” says Sibley. “They try to build a relationship with the realtor. Lowes even has a program where they incent the realtor to give discount rebates to their customers.”
Putting the Move on Them
How do you reach this great, nomadic market of real estate agents? The good news is that anything goes. “I’ll use a fancy word: we have become ‘platform agnostic,’” says Sibley. “If you have 1.3 million people, some will react to direct mail, some will read a print magazine, and others will go on our Web site. It’s such a diverse audience that it’s not as simple as saying there’s one key way of doing things. Most marketers use a combination of the above based on the product or service they’re trying to sell.”
Since real estate agents are becoming more technology-savvy, using online marketing gives marketers a chance to convey more information than they could in a print product. For example, “Our magazine is highly read, but it’s always directing the reader to the Web site for more information,” says Sibley. In addition, real estate agents’ mobility means that text messaging marketing may be the wave of the future, according to Eva Perretti, director of sales and marketing at Mal Dunn Associates.
While it’s true that the real estate market is large and its product needs varied, don’t think that this means you can get away with a generic, one-size-fits-all message. Real estate agents respond better to copy that targets them by specifically using their own language. For example, a Dell ad in Realtor Magazine reads, “From virtual tours to open houses and closing statements, Dell can help you do what it takes to make the sale.” Sibley also recommends using testimonials from real estate agents in your copy.
You also need to vary your message depending on your market’s specific demographics, says Angela Nicolosi, director of data marketing services at Mal Dunn Associates. Your message will depend on the geography of your market—for example, urban versus suburban versus rural, retirement areas versus high tech areas, and the East and West Coasts versus the Midwest and the South; the agents’ full-time or part-time status, age and parenthood status; and the agents’ specialty, such as condos, single-family dwellings or rentals.
While you’re making your message as targeted as possible, don’t forget the basics, says Jim DiProspero, vice president of the direct data division at Specialists Marketing Services, a list management and brokerage firm based in Danbury, Conn. “The classic fundamentals of direct marketing generally work no matter what the audience,” he says. “Give them a compelling reason to get in touch with you with some kind of offer such as a free service or a discount … and it helps to have a deadline.”
Craft a compelling message, take advantage of real estate agents’ tech wisdom, and target your audience based not only on their profession but also on their demographics, and your product or service is sure to find a home within this profitable market.
Linda Formichelli is a freelance writer. She can be reached at linda-eric@lserv.com.
Understanding the Market
To market to real estate agents, it helps to understand what they do and how they do it. Real estate agents do more than buy and sell real estate for commissions; they also have a thorough knowledge of the communities they serve so they can recommend locales that fit their clients’ needs. They’re familiar with tax and zoning laws, and they know how to get financing for their clients. Agents also determine appropriate prices for the properties they’re selling and help both buyers and sellers negotiate costs.
Because real estate agents usually are independent professionals, they’re savvy in all aspects of running a business. They often have home offices with all the necessary supplies and equipment, and Internet connections since property searches are now conducted online.
Because real estate agents have to be available when their clients are, many of them work nights and weekends. They’re often on the go, driving from property to property. According to statistics provided by Mal Dunn, the average age of agents is 45 to 50 years. More than 80 percent of agents are college educated, and 70 percent are married. Fifty-five percent of real estate agents are female.
Real estate agents’ jobs are affected by the economy; when economic activity declines and interest rates rise, property sales fall. The Bureau of Labor Statistics states that the median annual earnings of salaried real estate sales agents, including commissions, were $35,670 in May 2004. The middle 50 percent earned between $23,500 and $58,110 a year. The lowest 10 percent earned less than $17,600, and the highest 10 percent earned more than $92,770. According to Stephanie Singer, who oversees consumer affairs for the National Association of Realtors, the median income for realtors in 2004 and 2005 was $49,300.
What They Buy
What products and services do real estate agents buy? “Everything,” says Singer. Since the market for realtors alone is 1.3 million strong, their needs are wide and varied. Says Frank Sibley, publisher of Realtor Magazine, “You can define the businesses that sell to them in two ways: the endemic businesses whose business is sell to the real estate industry, and then the non-endemic businesses that can sell anywhere but, for marketing reasons, they decide to target real estate agents with at least part of their advertising.”
Some of the common goods real estate agents purchase include corporate gifts such as flowers, apparel that looks high-end but without the hefty price tag, magazines and car rental services. Because agents are always on the run, mobile products like cell phones and PDAs are also good sellers.
Real estate agents are independent contractors, meaning most of them have home offices furnished with computers, office furniture and office supplies. In fact, says Sibley, most of the advertisers in Realtor Magazine, such as Dell and HP, cater to small/home business owners.
Every day real estate agents are in contact with people in search of new homes—and with new homes come new appliances, furniture, décor and other home improvement products. “The big box stores like Lowes and Home Depot advertise [in realtor publications] because they know that when you buy a home, you buy a lot of stuff to put in it,” says Sibley. “They try to build a relationship with the realtor. Lowes even has a program where they incent the realtor to give discount rebates to their customers.”
Putting the Move on Them
How do you reach this great, nomadic market of real estate agents? The good news is that anything goes. “I’ll use a fancy word: we have become ‘platform agnostic,’” says Sibley. “If you have 1.3 million people, some will react to direct mail, some will read a print magazine, and others will go on our Web site. It’s such a diverse audience that it’s not as simple as saying there’s one key way of doing things. Most marketers use a combination of the above based on the product or service they’re trying to sell.”
Since real estate agents are becoming more technology-savvy, using online marketing gives marketers a chance to convey more information than they could in a print product. For example, “Our magazine is highly read, but it’s always directing the reader to the Web site for more information,” says Sibley. In addition, real estate agents’ mobility means that text messaging marketing may be the wave of the future, according to Eva Perretti, director of sales and marketing at Mal Dunn Associates.
While it’s true that the real estate market is large and its product needs varied, don’t think that this means you can get away with a generic, one-size-fits-all message. Real estate agents respond better to copy that targets them by specifically using their own language. For example, a Dell ad in Realtor Magazine reads, “From virtual tours to open houses and closing statements, Dell can help you do what it takes to make the sale.” Sibley also recommends using testimonials from real estate agents in your copy.
You also need to vary your message depending on your market’s specific demographics, says Angela Nicolosi, director of data marketing services at Mal Dunn Associates. Your message will depend on the geography of your market—for example, urban versus suburban versus rural, retirement areas versus high tech areas, and the East and West Coasts versus the Midwest and the South; the agents’ full-time or part-time status, age and parenthood status; and the agents’ specialty, such as condos, single-family dwellings or rentals.
While you’re making your message as targeted as possible, don’t forget the basics, says Jim DiProspero, vice president of the direct data division at Specialists Marketing Services, a list management and brokerage firm based in Danbury, Conn. “The classic fundamentals of direct marketing generally work no matter what the audience,” he says. “Give them a compelling reason to get in touch with you with some kind of offer such as a free service or a discount … and it helps to have a deadline.”
Craft a compelling message, take advantage of real estate agents’ tech wisdom, and target your audience based not only on their profession but also on their demographics, and your product or service is sure to find a home within this profitable market.
Linda Formichelli is a freelance writer. She can be reached at linda-eric@lserv.com.
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