THE LAFAYETTE REPORT: June 2009

Recently, Facebook.com offered vanity names for its accounts.  It prompted a gold rush or land grab type euphoria among tech savvy speculators who registered names with lightning speed.

Like domain names a few years back, cybersquatters are back and registering names on Facebook, Twitter, and other social networking sites is now big business. 

Now, as technology changes, speculators and other business opportunists fill the void.  There is a nasceant market for the buying and selling of social media names.  Now, I wouldn't characterize all such transactions as cybersquatting.  I don't see a problem with registering a Twitter account name such as "Condo", building followers of real estate professionals, and then selling the name to the highest bidder.  Developing a strong, expansive social network takes time and effort and there will always be someone who is willing to attempt to substitute "cash" for "hard work" for the instant gratification of purchasing another's network.  To me, it is akin to selling a mailing list, provided that you aren't enfringing upon another's trademark, service mark or trade name and therein lies the problem.

Nevertheless, this post isn't about cybersquatting and its ethical and legal implications.  It is simply a review of the website www.Assetize.com.  Their concept is pretty simple.  Assetize.com creates a marketplace or forum for account name holders to sell their account names to the highest bidder.    Assetize.com currently permits the sale of account names from these social networking sites:

A brief review of the site indicates that there over 1100 accounts now listed for sale on the site including:

• Numbered account names like "24" or "24/7" 
• Trademarked names like "MtnDew" or "PepsiWorld" or "Hilton World Resorts" or "EntertainmentTonight" 
• Celebrity names or teams like "Shaq" or "Colorado Avalanche" to "ColdPlayTour" or "GregMaddux" 
• Common causes or items like "teensandsmoking" or "condos."

The land rush for social media names like domain names will likely generate three separate cottage industries:  (1) speculators who register and sell the names, (2) monitoring companies who register, monitor and protect corporate trademarks, service marks and trade names, and (3) lawyers who sue the nouveau cybersquatters for enfringing upon trademarks, service marks and trade names.  

Before you register, sell or purchase such names, I would first review the terms of service for the social networking site.  You may, in fact, be purchasing nothing if the transfer of accounts is prohibited.  After reading the terms of service, I would strongly suggest that you contact your attorney before you use a celebrity name or trademarked name.  If you are looking for the St. Louis connection in this post, you don't have to look far.  St. Louis Cardinals Manager Tony LaRusso recently sued Twitter for allowing an individual to register his name and Jeremy Fancher, a student at Washington University in St. Louis, registered facebook.com/dellcomputer.  It should be interesting how this next chapter in cybersquatting plays out.  All I can say is - it looks like it is going to get nasty out there folks.

Interested in learning more about how to use social networking sites to market and sell real estate?  Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or send an e-mail to Ryan@PREASignatureRealty.com.

The National Association of Realtors and Missouri Association of Realtors had an interesting market comment on the use of social media.  It did a very good job describing the rise in the popularity of social media to market and sell real estate:

Many real estate brokers and agents are looking to "social networking" programs such as Facebook or Twitter to turn their business around.  (A recent NAR member profile indicates that more than one-third of all Realtors are using social networking sites and that seventeen percent regularly use blogs, RSS feeds and podcasts.)

It is really no surprise that one-third of Realtors use social networking sites.  Similarly, it is no surprise that 20% of Realtors use blogging and podcasts.  The simple fact is that our consumers are using the sites and a presence on the internet is required to stay in front of our customer and attuned to market and societal trends.  After acknowledging the increasing use of social networking sites, the market comment then attempts to weigh in on the Great Debate - whether or not social networking by Realtors is an effective strategy:

And, just like any other marketing or advertising program, that may work for those who have a solid social networking plan-and who stick to it.  But these programs also have their price in terms of time and effort.  Most businesses that have found success in these programs are devoting lots of time and effort to maintaining their presence on these networks.  And that means frequent postings, extensive daily review and quick-time response to questions and comments of network participants.  And unless you are willing to spend a lot of time doing this, the results will likely be negative:  When your activity on these networks is sporadic-when you don't have a constant, moment-to-moment presence on the network-you could easily be perceived as "out of step" with the fast-paced lives of serious tweeters. 

Now, I think that the market notegets it right and wrong on this issue.  I don't think that there is any debate that the effective use of social networking sites requires a persistence, regularity and a commitment of time.  However, I don't agree that it is necessarily time consuming.  Social networking has a great advantage over regular networking, advertising, etc.  Social networking can be done at any time of the day so you can do your networking at 6 a.m. or 2 a.m. and still be effective.  Social networking is a 24/7 proposition.  However, social networking and blogging have another, more important advantage.  Unlike print advertisements which have a shelf life until the next issue is published, a blog post can generate interest months and even years after it is published.

So far, I generally agree with the points raised in the market comment.  However, the market comment then took an interesting twist.  The market comment might as well have been written by a marketing consultant.  It advocates that Realtors retain marketing consultant to learn how to effectively use social media:

Industry consultants seem to be in agreement that, to be effective, you need to hire someone who knows the ins and outs of social networks to make worthwhile connections with customers.  And that's where the big bucks are to be made.

Now, I disagree with the premise of this point.  It seems to imply that social networking is so complicated that you need a marketing consultant to learn how to effectively use social media.  I would agree that marketing consultants can assist Realtors in the "Do's" and "Don't's" of social networking and decrease the slope of the learning curve.  However, as a multitude of Activerain posts would indicate, Realtors can master social media without retaining a marketing consultant.  There is no universal "how to" book.  There is no formal education or training process to become a self-designated social media expert.  More importantly, there are as many opinions on how to effectively use social media as there are self-proclaimed social media experts.  Saying that you need to hire a marketing consultant to effectively use social media to market and sell real estate is akin to saying that you need to hire an advertising firm to effectively create a print ad campaign.  Can it help?  Yes.  Can you do it yourself?  Absolutely.

The market comment then makes the pitch for professional marketing consultants:

A recent Miami Herald article quotes Brian Breslin, a social media strategy consultant:  "With any new topic or hot item, a lot of companies rush to it because they think it's trendy, or their boss sees it in the Wall Street Journal and thinks, ‘Oh, we need an iPhone app.'  But they don't really know why."  Breslin has figured out how to make money on social networking, however.  He is CEO of infinimedia and founder of a monthly social event "RefreshMiami" and "Facebook Developer Garage Miami,"  businesses focused on helping programmers share best practices in creating applications and building communities on Facebook.

Well, I would agree that social media is the darling of the media.  It is trendy and there has been a rush to get involved and to stake out a position on social networking sites.  However, I disagree that we don't "really know why" social media is important.  It is pretty simple - our customers use social media, we go where our customers congregate, and it is a highly effective marketing tool.  Although marketing consultants can assist us with our social media marketing efforts, the simple fact is that the basics of social networking are the same as real-life networking which centers on keeping in touch or in front of our network, building relationships, and identifying and taking action when business opportunities present themselves.

So, here are a few questions for the Activerain community:

• How did you first discover the power of social networking sites?
• Did you retain a marketing consultant to teach you how to effectively use social media?
• Is there such a thing as a social media expert?

Need a speaker at an upcoming sales meeting?  Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or send an e-mail to Ryan@PREASignatureRealty.com.  Or, visit the Tech Toolbox at www.PREASignatureRealty.com.

Recently, I received a telephone call that led to a lengthy discussion about real estate and the use of technology to market and sell homes.  The caller had read my ActiveRain blog entitled "The Lafayette Report" and had a pretty good grasp of my passionate views on the use of technology to market and sell real estate.  In fact, if you aren't committed to the idea that blogging is good for business, the fact that he read my blog and called me is really what it is all about - that is, it is all about new introductions, great conversations, and developing new business.

After a few minutes, the conversation turned to social media.  He cited a few statistics about the inordinate time spent on social media and the lack of tangible, readily trackable results.  After he provided me with some comments from marketing experts and other real estate professionals, he asked me about the "Great Debate" that was raging among real estate professionals. 

Now, I was perplexed.  I stammered "the Great... What?"  "Well, you know the debate as to whether or not social media is  a waste of time", he replied.  Now, I understood the question, but I really couldn't believe it.  I thought there were a few simple truths out there - the sun rises in the East and sets in the West, the Earth is round, and blogging and social media work.  Admittedly, I have generally surrounded myself with other real estate professionals who have embraced the use of technology.  So, I started thinking "Had I really surrounded myself with social media evangelists and insulated myself from some allegedly mainstream view that social media is a waste of time?"  Well, perhaps I am guilty as charged.

So after discussing statistics, anecdotal evidence, and the comments of marketing pundits, he asked:  "For new real estate agents, is social media the wave of the future or a huge waste of time?"  Now, after my passionate (actually gushing) defense of technology, my answer caught the caller by surprise.  You see my answer was "Yes, for most new real estate agents, social media is a big waste of time."  He stammered "... but I thought you used technology and provided training to real estate agents on things like LinkedIn."  I again replied affirmatively and my answer didn't waver after the second and third questions. 

Now, those who know me know that I have always been intrigued by the legendary commentator Paul Harvey's signature line "Now, the rest of the story..."  In my opinion, there is a simple truth.  For some agents, social media is a waste of time.  Here is why:

• Lack of Commitment - Social media requires a regular commitment of time and effort.  You can't simply do it once every 4 weeks and expect it to achieve results.
• Lack of a Plan - Social media requires a plan.  You can't simply do it for the sake of doing it.  Before you start blogging or using social networks, you need to assess your skills and strengths, identify your target audience, and develop a clear and consistent message.
• Lack of Participation - Social media is no different than real life networking.  For example, you can place an advertisement in the local chamber of commerce journal.  You may generate some business.  However, when you actively participate in the committees and activities of the local chamber, your networking efforts will likely have a greater return.  Social networking is no different.  If you simply post a profile, it may generate some leads.  However, social media has the greatest impact when you actively participate in the community.

So, my answer may have been misleading.  I like a good debate and a healthy conversation.  So, here is the rest of the story:

• Social media works - but only works if you understand its nature and purpose.  It isn't an advertising tool.  It is an introduction tool.
• Social media isn't passive like a print advertisement.  It is based on participation and interaction. 
• Social media requires a regular commitment of time and effort.  You simply can't pop in and pop out of social media and think it will work.

As a result, for many real estate agents, social media simply won't work.  It isn't a magic elixir.  It isn't a silver bullet.  More importantly, it simply as a rule doesn't generate immediate results.  Many of the real estate professionals who try social networking sites will conclude that social media isn't a useful tool to market and sell homes.  For these professionals and  others who attack social networking such as Facebook, LinkedIn, and Twitter as the latest and greatest darlings of the media, I agree.  It doesn't work... unless and until you make a commitment, participate in the community, share your expertise, provide assistance to those in need, and have committed a sufficient amount and time and effort to participating in the social networking sites.  

Interested in attending our next real estate technology seminar to learn how to market and sell real estate using technology, the interent, and social media?  Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or send an e-mail to Ryan@PREASignatureRealty.com.  For technology tips and tools, visit the Tech Toolbox at www.PREASignatureRealty.com.

If you are interested in purchasing a single family home, townhome, condominium or loft in Lafayette Square, there has never been a better time to buy.  In 2008, the median price for homes in Lafayette Square increased 8%.  Lafayette Square continues to hold its value.  With excess supply, the availability of 100% financing and other sales incentives (select properties), low interest rates, and the availability of state historic tax credits for rehabilitation and the federal first-time home buyer tax credits, there has never been a better time to purchase a new home in Lafayette Square.

For more information on local market conditions in Lafayette Square and other neighborhoods of the City of St. Louis, Missouri, please visit our website by clicking on:  Local Market Conditions.  Or, contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com.

When it comes to blog titles, we all want to use some clever slogan to attract attention or generate a buzz.  A clever title draws the reader in and makes them want to click through and read the entire article. 

Now, over the past few months, I have noticed the term "sucks" used in over 100 posts and I don't really get the motivation for using it.  It is debatable whether it is profanity or not.  Whether it is or isn't, it may turn off customers, colleagues and idle readers.  Here are some stories about the use of the term:

• In 2005, USA Today did a story on linguistics and baseball that debated whether "Yankees suck" on t-shirts was profanity on not. 
• Recently, the issue has reared its head in Baltimore, Seattle and Arlington where fans have been asked to either remove their t-shirts or leave for violating bans on profanity contained in the fan code of conduct and ticket license agreement.  Here is a recent story from the Dallas Morning News involving the Texas Rangers. 
• In contrast to the stance of Major League Baseball teams, other businesses don't view it as profanity.  In fact, Dish Network recently used it in an ad campaign featuring the slogan "TV doesn't have to suck."  The ad campaign struck a nerve with OneMillionMoms.com which launched an e-mail campaign protesting the use of crude language in advertising.  It also drew a commentary from the National Review Online that stated as follows:

"But why does DISH think it's acceptable to offer up, as a reason for customers to subscribe to it, the opinion that it doesn't "suck?" The entire campaign is infantile. It captures the language of 13-year-old boys in an attempt to persuade parents to buy a somewhat expensive luxury product. It seems to have sought the lowest common usage with which to describe the lack of quality, and it has built its entire public image around this usage. Which, if you think about it, is very bad marketing. DISH Network has associated itself with a word that is counterproductive to its goal."

Whether it is profanity or not, I know that my older, educated customers either view it as a vulgar term with a sexual connotation or, even if not profanity, they view it as a low class slang word.  I suspect that some would simple delete the post, unsubscribe and stop reading.  Now, I'm not a prude.  I simply am cautious or judicious with the language that I choose to use so that customers see me in the best light, strongest terms, most positive circumstances, etc. 

Maybe Dish Network's plan succeeded.  If its goal was to shock people and generate publicity, it probably did work as you can see that some are talking about it more than 4 year later.  However, as a profession whose target market isn't 13-year old boys who watch Beavis and Butthead and laugh at fart sounds, it seems like we can do better.

So, it leads me to the question:  If the term offends some as profanity, why use it?  If you have used the term in a blog post, did it really attract readers to your blog?

Interested in developing clever marketing campaigns that don't use profanity and that focus on simple values to sell your home in St. Louis, Missouri? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or send an e-mail to Ryan@PREASignatureRealty.com.