What You Need to Know About The Pros and Cons Of Farming
The real estate industry is changing. It always has been, and it always will be. That’s great news for you. With those changes comes opportunities and some disadvantages. The old school ways of doing geo farming have come and gone, however we are left with new ways of establishing yourself as the community expert. Today we are going to dive into some of the pros and cons of real estate farming you should know about if you want to build a long term successful business.
What is Real Estate Farming?
Before we start, It’s important to discuss what exactly is real estate farming? Some call it geographic farming. You may hear geo farming or geographical farming. You may just hear it referred to as “farming”. Whatever you call it, real estate farming is a marketing strategy where you focus on building relationships with homeowners and potential buyers within a specific geographic area. It involves consistently marketing to a specific neighbourhood or area to build your brand and generate leads. The great news is there are plenty of strategies you can do to build your geo farming business, which we cover in other blogs.
Before we dive into some tips and tricks, let’s talk about the pros and cons of farming you should understand!
Benefits of Real Estate Farming
Consistency
One of the main benefits of real estate farming is that it can provide consistency in your business. Agents who learn to master their efforts in their farm can build an incredibly predictable stream of leads and business from their farming efforts. This consistency can help you build a sustainable business and make it easier to plan for the future. It also allows you to be able to really reinvest in your business because you know you can get consistent returns on your marketing and efforts spent.
Predictability
Geo farming can also provide predictability in terms of your marketing efforts. This predictability allows you to create a plan that you know gets results and gets engagement. By understanding your basic metrics and your returns, you can spot changes in your market, your efforts and see more opportunities or changes that may need to be made. Also, when you farm the same area consistently, you can create a marketing plan that is tailored to that area and its residents. Which further increases your predictability.
Increased Brand Awareness
For most agents, the reason they choose to farm is they want to build a recognisable brand. Consistent farming allows agents to dramatically increase their brand awareness within their farm, thus making it easier to convert more leads, spend less and make more money. By consistently marketing to a specific neighbourhood, you can build a reputation as the go-to agent in that area which compounds all your other efforts and increases your overall business. This can help you build trust with potential clients easier and also makes it easier to generate consistent leads.
Higher Conversion Rates
When you choose to start a farm, you may not realise it, but the right approaches can lead to MUCH higher conversion rates than traditional real estate efforts. Because the right type of farming focuses on building relationships, positioning yourself as the expert and ambassador and by putting the community first (our signature C.P.R. system) you create a much stronger sense of familiarity and trust. This can make it easier to convert leads into clients and close deals because you have inherent loyalty, name recognition and stronger relationships.
Cost-Effective
With the right approaches, agents can use geographic farming as a cost-effective marketing strategy. By focusing on a specific area, you can save money on marketing expenses and generate a higher return on investment. This is due to higher conversion rates, doubling up on your strategies that work and learning to leverage what we call “strategy stacking” to get way more bang for your buck. Your tailored marketing efforts can also convert higher because it’s more suited for the specific area you are serving, rather than trying to be a general agent to all.
Personalization
Finally, real estate farming allows you to personalise your marketing efforts. By focusing on a specific area, you can create marketing materials that are tailored to the interests and needs of that area. This helps the community connect more to your marketing, as well as establishes you as the agent of choice, as you position yourself as the community specialist. This can help you build even stronger relationships with potential clients and generate more leads than you can keep up with!
Drawbacks of Real Estate Farming
It Requires Patience
One of the drawbacks of real estate farming is that it requires patience. As you are probably aware, that is something many of us agents struggle with. We want instant results and quick profits. However, farming isn’t a get rich quick scheme and takes effort. Building relationships with homeowners and potential buyers within a specific area takes time and effort. It can take months (if you learn our strategies) or even years to see results from your marketing efforts. And for many out there, they just don’t have the patience to see it through.
Time-Consuming
Geo farming can also be time-consuming. Again, it’s not a get rich quick scheme. You are going to have to put time into it to see results. The great news is that most agents aren’t committed to putting the needed time and effort. That bodes well for agents like you who are ready to make it work. The right approaches require consistent marketing efforts and a long-term commitment to build strong relationships in your farm. This can take time away from other aspects of your business if you are trying to juggle multiple balls at the same time.
Requires Consistency
One thing that is a guarantee is that geographic farming requires consistency! Consistency in your marketing efforts, in your lead generation, in your follow up and in your growth . You need to consistently focus your energy and efforts in your community or neighbourhood to ensure you get the most from the relationships you build.This can be challenging if you have a busy schedule or other responsibilities that take up your time. Or if you just aren’t fully committed.
Competition
Another drawback to farming is that you may face competition from other agents who are also targeting the same area. This can make it more difficult to stand out and generate leads. The great news is, from our experience, most areas don’t truly have a dominate agent in their area, or at least not one that you should be worried about competing with.
Limited Reach
Real estate farming also has a limited reach. Some agents fall into the trap of “FOMO” and feel that farming can limit their business. By focusing on a specific area, you may miss out on potential clients who live outside of that area. This can limit your overall reach and potential business opportunities. However, the right approaches and long term plan, can all but eliminate those concerns.
Factors to Consider Before Implementing Real Estate Farming
Before implementing any geographic farming strategies in your business, there are several factors you should consider:
Your Budget
Farming requires a financial investment in marketing materials, events, and other initiatives. But it also requires a “Time” budget as well as an “energy and effort” budget as well. You need to consider your budget before you fully commit and make sure you have the resources to sustain a long-term marketing effort. The great news is that it doesn’t usually require as much as many agents think.
Your Audience
You need to identify your audience within your farm and build a plan to connect with them on matters that have the biggest impact for them. An audience living in a condo building won’t have the same opportunities, challenges and concerns as someone living in a rural or suburban area, so understanding the needs of the residents in your farm area is very important.
Your Niche
You also need to consider your niche within the specific area. This may involve identifying the types of properties, price points, or pockets you specialise in or the types of clients you work with.
Your Strategy
Finally, you need to develop a clear strategy for your real estate farming efforts. The great news is that you came to the right place. Here at Launch Your Farm, helping you develop your strategies is what we do!
Tips for Successful Real Estate Farming
To be successful in real estate farming, consider these tips:
- Be consistent in your marketing efforts
- Provide valuable information to residents in your targeted area
- Build relationships with potential clients through community events and other initiatives
- Use digital marketing tactics, such as social media and email marketing, to supplement your offline efforts
- Measure your results and make adjustments as needed
Conclusion
Real estate farming can be a powerful marketing strategy for building a sustainable real estate business. It offers consistency, predictability, and the potential for higher conversion rates. However, it also requires patience, consistency, and a long-term commitment. By considering the pros and cons of farming and developing a clear strategy, you can successfully implement real estate farming in your business. The key is to get started!
FAQs
- Is real estate farming a cost-effective marketing strategy?
Yes, real estate farming can be a cost-effective marketing strategy because it allows you to tailor your marketing efforts to a specific area and generate a higher return on investment.
- How long does it take to see results from real estate farming?
It can take months (if you leverage our customised strategies) or even years to see results from real estate farming because it requires consistent marketing efforts and a long-term commitment to building relationships within a specific area.
- Can real estate farming be used in combination with other marketing strategies?
Yes, real estate farming can be used in combination with other marketing strategies, such as online advertising and social media marketing.
- How do I identify my target audience within a specific area?
You can identify your target audience by researching the demographics, interests, and needs of the residents in that area as well as micro farm opportunities in your farm.
- What are some examples of marketing materials used in real estate farming?
Examples of marketing materials used in real estate farming include postcards, newsletters, and brochures, social media, video marketing, online marketing like PPC ads and retargeting, community outreach, branding opportunities and many others.
#RealEstateFarming #GeoFarming #GeographicFarming #MarketingStrategy #CommunityExpert #Consistency #Predictability #BrandAwareness #ConversionRates #CostEffective #Personalization #Patience #TimeConsuming #Competition #LimitedReach #Budget #Audience #Niche #Strategy #SuccessfulFarmingTips
Happy Farming!
Ryan Smith – Founder/Creator
Launch Your Farm
Be sure to check back on our blog and show to get awesome information about geographic farming!
Blog – http://www.LaunchYourFarm.com/Blog
Show – http://launchyourfarm.com/category/interviews
Recent Comments