Or is this something that should be done privately, in-house?
A lot of real estate brokerages have stopped advertising “names and faces” in the newspaper over the last few years, but many, many brokerages still do.
A client of mine asked me the other day, “What message are these folks trying to send with this advertisement?”
I guess it all depends on how the ad is perceived by the general public…
A colleague of mine saw me making this video the other day, and he said, “You be careful. You might anger a lot of fellow agents out there with that.”
Really?
Why?
I’m just asking a question. I’m not saying that I agree or disagree with this style of advertising. I’m just curious to know what the public thinks.
What’s wrong with soliciting feedback?
My mother tells me, “I wish I saw your face in the newspaper more often!” Well, she’s my mother. Maybe my clients would laugh at me. I know my friends sure would…
The results of advertising all depend on who is looking at the ad.
I’ve long maintained that advertising active listings in the newspaper is a waste, since nobody looks in the newspaper for real estate anymore; everybody is on the Internet. But some companies, who cater to an older demographic, still insist on running ads in the Friday Globe & Mail “Real Estate section, and the Saturday Toronto Star “New In Homes.”
A very experienced, very knowledgeable agent told me, in response to this video and the question I’m asking, “If some of these brokerages stopped running ads with their yearly award winners, then the people who are accustomed to seeing the ads, might think they’ve gone out of business.”
That’s true, in a way.
But as my favourite comedian, David Cross says, “Why does McDonald’s still advertise? Yeah – we get it, you’re the folks that make hamburgers. Okay. Seriously, because if I went a week or a month without seeing an ad for a Big Mac, I wouldn’t all of a sudden be like, ‘What the…..did McDonald’s go out of business?'”
Anyways, I’m curious to hear some feedback from non-Realtors on how you feel when you see these advertisements showcasing “Award Winners.”
Don’t be afraid to be honest…
A Grant
at 7:15 am
I ignore it – it’s filler much like those “advertisement” sections masquerading as as news. So I guess I have no opinion either way.
GF
at 7:24 am
Just another ad in a newspaper to me. Not as obnoxious at the Bad Boy Furniture ads you get some papers, but I treat them the same. I just keep flipping the pages and move on. Too many of them though and I’m liable to just discard the entire section of the newspaper without reading any articles, even though there might be a good one in there.
Egon Spengler
at 8:20 am
Print is dead.
David Fleming
at 11:30 am
@ Egon Spengler
Great moniker!
I believe that was the first movie I ever saw in 1984…
Pete
at 8:23 am
One page with a few top “award winners” is an ad. A 7 page spread that looks like a high school yearbook is ridiculous. I’d say it’s less about advertising and more about stroking egos. Do they think anyone in the public is actually going to read through all the names and stats?
Joe Q.
at 9:07 am
Agreed. It’s a masturbatory exercise, nothing more.
Geoff
at 8:43 am
Love David Cross but he’s not that bright in advertising. Arguably, McDonalds doesn’t sell hamburgers, it sells brand identity and relationships. Consider breakfast: McDonalds owns the breakfast market (I’m not talking a morning coffee though they’re making inroads, I’m talking cheap breakfast – you don’t go to Burger King or Subway for breakfast though they’re trying too) – they won’t give that up for anybody.
However, why people advertise houses for sale in print does seem to me a waste of time, but I could see some arguments either way.
Schmidtz
at 9:00 am
Geoff that’s retarded. They own the breakfast market? Really? So they have 30% share in the US and probably much lower in Canada given Timmy’s is religion.
http://www.fool.com/investing/general/2014/03/13/mcdonalds-takes-an-if-you-cant-beat-em-join-em-str.aspx
McDonalds sells relationships? With whom? Your heart surgeon and yourself? This is utter nonsense. Their job is to increase shareholder value. They do this via generating profits. They do this via selling food. Period.
Smarten up, dum dum.
Darren
at 9:52 am
Your response it’s way over the top. No need to be so hostile.
Schmidtz
at 11:06 am
disagree
Nathan
at 10:57 am
As a member of the general public I’ve always been a little put off by these yearly award winners ads but could not quite articulate why. Perhaps these awards are of little relevance to me and it’s all about stroking individual egos?
PS Long time follower of the blog first time commenting!
Kyle
at 10:59 am
It definitely is a wanky practice, but i’m guessing it’s one of those “we’ve always done that, you can’t just take it away from them” type of recognition/reward practices for top producers. I suspect it really isn’t meant for consumers. As a consumer, i don’t care if someone is a double diamond, platinum, gold, titanium, rhodium, palladium, silver, boron, jubilee award winner, but i imagine the recipient might feel slighted, if all of the sudden they stopped the practice of publishing it in the paper.
Kyle
at 11:02 am
I also wonder if it is also a way for brokerages to incite more competition amongst their sales people, and to “motivate” non-award winners into performing.
Nathan
at 11:54 am
Yes good point.
What is even more of a turn off is when realtors put their award winnings on the business card.
MStar
at 3:21 pm
Really? I think its not only fine to include on business card, but it should be noted there (maybe on back). Why would you not want showcase achieving a certain volume of sales. In terms of selecting an agent who does a lot of business vs someone who doesn’t – I would be leaning towards the one with more experience (ie award winner). Nathan, Why is this a turn off??
Floom
at 2:43 pm
First of all, Schmidtz must be suffering from PTSD -that is entirely forgivable. Thank you for your service Schmidtz! Secondly, McDonalds advertisements serve to remind you of its brand identity and consistency – walk into any store, anywhere – and you’ll get a delicious, artery-clogging meal. Third, I agree with Pete and Joe Q, the full page ads year-book ads are overkill. I feel they are more for existing clients – to reinforce why they picked you and/or why they’ll go back to you “Oh good, he’s in the paper as an award-winner.” …I can’t imagine someone choosing a realtor based on those ads but they might help reinforce the decision or help one make up their mind. Signage, though, is compelling “Wow, Cookie Kwan absolutely OWNs the west side!”…FYI, there is a BIG realtor in Vancouver who sells multi-million dollar houses, she legally changed her name to “Stella Price” and she throws a party every year for ALL her current and ex clients where she gives away a Mercedes – every year.
David Fleming
at 4:07 pm
@ Floom
Soooooo……..you’re saying I owe you a Mercedes?
Geez. I’d better get back to work…
Schmidtz
at 3:54 pm
I’m actually a realtor with PBSD.
Post Boner Stress Disorder.
I blame all the Big Macs I ate in Afghanistan.
Ticker
at 9:27 pm
The number of winners diminishes the award to me. I realize they have more Agents but come on, the guy with the sign down the street that’s been up for months is on there, doesn’t appear to be very difficult to win. I don’t personally see the value. The Agent with all the listings, or the signs with sold across their names is much more memorable to me. David what are some of the actual numbers to win these awards.
David Fleming
at 12:20 pm
@ Ticker
Some firms hand out an award for agents who gross $75,000.
If these agents are on a 60/40 split, that means they take home $45,000.
After paying their licensing and direct expenses, they’re probably at $40,000.
These agents likely spend $10K in marketing, advertising, and operating costs, so they net $30,000, albeit with some nice tax write-offs.
So yes, these agents are getting an “award” for making $30,000.
reinepersane
at 9:49 am
I agree with Egon Spengler’s and Geoff’s comments. Nowadays, with print slowly dying, most newspapers will offer hugely discounted ad space and target their longer standing clients first. Firms still taking up newspaper space to celebrate awards and other special occasions will see the discount as a good deal. Firms operated less traditionally – like the David Flemings’ – might not see print ad as a good business decision for them. So, as a member of the general public, when I flip through an awards ad, it gives me a sense of the old school or modern quality of the firm’s management – this, in any industry, including real estate – that, if . And the yearbook photos. They are like the obituaries, you look to see if there is anyone you know and care enough about to call up. In this case, you’d talk about stuff most here refer to as ego stroking, giving the award winner perhaps a new lead.
Ed
at 11:58 am
I’ve noticed many “top performing” agents have huge egos which need to be stoked.
Also it’s a way for the real estate company to say thanks for making us so much money.
JP
at 5:00 pm
I personally never cared if I won “awards”. I figure that for the money some of the “top producers” are earning the Brokerages, the least the Brokerage can do is give the sales person some free advertising.
Some people still read the newspaper. I don’t. I can only think of 2 people off the top of my head that do.
As far as advertising listings, I feel it’s a total waste of money. The only reason I’ll do it, and it’s always reluctantly, is because the owner seems to think that “it’s the way things are done” and it’s a sticking point to getting the listing. I have never, to my knowledge, sold a house (or bought one as a buyer agent) as the direct result of a newspaper ad.
Mind you, I haven’t noticed any reduction in advertising fees as a result of fewer of us placing ads.
AndrewB
at 4:52 pm
“But as my favourite comedian, David Cross says, “Why does McDonald’s still advertise? Yeah – we get it, you’re the folks that make hamburgers. Okay. Seriously, because if I went a week or a month without seeing an ad for a Big Mac, I wouldn’t all of a sudden be like, ‘What the…..did McDonald’s go out of business?’”
I’ve always thought this about Coca Cola. Like, Coca Cola is one of 2 plays in a beverage oligopoly. Exactly WHY do they need to advertise? Coke is culture.
As for advertising agents, I feel some of them can be tacky. Just because someone has Top 1% sales in GTA or whatever, doesn’t mean they’re a great person or someone who would mesh with every agent. I see those agents as being all about the hard number and not about the finding someone a new home as being a journey with them and developing a friendship. Or maybe that’s just how things turned out with my Realtor? *shrugs*