Before advertising a real estate investment business, the business owner must understand the components of advertising. Placing a newspaper ad, door-to-door leafleting, or using a voicemail message are all useful advertising methods; however, advertising will not be successful unless the real estate developer delivers an appropriate message with the correct medium to the target market.
The three main components of advertising, also known as the three big Ms, are: the message, the media, and the market. To briefly summarize what each component consists of: the message consists of the words used in the advertisement; the medium is the type of advertising; and the market is the group to which advertising is directed. Now the brainstorming can begin. When you brainstorm your message, medium and market, you can do it yourself or include other partners. The more minds, the better the flow of ideas becomes.
To get started, assess the market you are trying to reach. To achieve a high level of success with your advertising, narrow down your market. You want to make sure you’re targeting motivated potential sellers. Don’t necessarily think that a bigger and broader audience is better than a narrow and specific audience. Conversely, it’s much easier to shape a message and choose a medium when you’ve targeted your market.
Once you’ve narrowed down your market, it’s time to craft your message. This can be anything from an “elevator pitch” to a catchy phrase. Remember that people are bombarded with advertising almost 100 percent of the time. This puts extra pressure to make sure your message appeals to motivated sellers. Focus your message on what your company can do for the motivated salesperson – how working with you will benefit them.
Finally, choose the medium for your advertising. This may include mailings, newspaper advertisements, television advertisements, etc. A good place to start is by looking at what other investors are doing: where do they advertise? Analyze how their choices have been successful for them or detrimental to their work. The results of your analysis can be a start for your decision making.
Once you’ve finalized your decisions about your market, message, and medium, make sure you have a system to track the success of your advertising. Always go back to the drawing board after evaluating the effectiveness of your advertising. If advertising isn’t working to its full potential, ask yourself these questions: Does my message need to be modified? Is this the right medium for my market? Is my market too narrow or too broad?
