I decided to share an article I wrote for REM Magazine a number of years ago. You can find the original here.
You want to dominate a micro market? That sounds incredibly small, right? You can’t get enough business from a micro market, right? Wrong!
Every year there are thousands of agents cleaning up by taking over a micro market. Not only is it much more cost effective, but it can also make you the king or queen of your niche area. You can “own” it quicker, take a bigger market share and increase your referral business when you learn to master the art of micro marketing.
Here are four strategies you can start applying today to take over your micro market:
1. Choose a micro geographic niche: If you are looking to start a micro geographic niche, it’s helpful if you already have some “ins” within the area. For example, if you live in a specific neighbourhood, condo building or area, it can be advantageous to start there. An important consideration is the turnover rate. Just because you live there doesn’t mean it will be worth pursuing. Some industry experts suggest a seven to 10-per-cent turnover per year or more as a good indicator of a healthy market rate.
Keep in mind you aren’t going to get 100 per cent of the deals in the area, but if you can aim to eventually take 20 per cent or more of the sales, you can start to make it a very profitable venture. Let’s take a neighbourhood of 500 homes as an example. Let’s say there is a 10-per-cent turnover in the area – that’s 50 home sales a year. If you can get to 20-per-cent market share, that’s 10 listing sales a year.
Don’t forget that many of these sellers will be buying and you also have the opportunity to double-end the deals. So let’s call it 20 sales in one year from 500-home micro geographic area. Not too shabby, I’d say.
2. Build an online community: One way to get into the micro market community for little to no cost is to create a local blog/social media space. You can update it with events, news and insider information. You may also want to pepper in your own real estate information for a little extra exposure. This is a great way to reach your audience online and stay connected. There are a number of agents who have taken this concept and run with it and had tremendous success. They have not only become the community ambassadors, but are also now seen as the experts in their area. If done correctly, this method costs little and can be highly effective in taking over your micro market.
3. Create a newsletter: A great way to connect and engage with your micro market is to create a community or business newsletter. The great thing about this strategy is that it allows you to be in control of the media your consumers are getting. You can bring in your preferred partners to help create content, pay for costs, distribute to their database and also to add credibility. A monthly newsletter can be an excellent way to stay in contact with your audience at a very low cost and in a consistent manor. Don’t forget that you still need to connect in real life – don’t hide behind the newsletter. Remember, this is still a belly-to-belly business.
4. Build an email list: If you plan to get the most out of your micro market, you need to ensure you are doing everything you can to capture email addresses. Any agent can get phone numbers, but if you build a list of emails in your area, you can get the right information in front of the right people at the right time. Get registrations at open houses, get sign ups on your community pages, host local contests/giveaways in exchange for emails, do online marketing to get sign ups. Remember to follow the rules of the new anti-spam legislation.
What are you waiting for?
Taking over a micro market isn’t hard, you just need to be consistent and persistent with the right actions, and before you know it, the neighbourhood will be yours. The great thing about these strategies is they can all be intertwined. You can connect your newsletter to your community groups and website and collect emails so you can stay in touch with what is going on in the area.
Get out there and start owning your micro market. A year from now you don’t want to wish you had started a year ago.
Happy Farming,
Ryan Smith
Launch Your Farm – www.LaunchYourFarm.com
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