By Meredith Oliver MIRM, MCSP

There aren't many "sure things" in the present real estate market. With mortgage programs changing by the minute, values continuing to fluctuate and buyers on the fence more than ever, as a business owner how do you know what business strategy to count on? In this fluid environment, how does a builder make wise business decisions on what to streamline and where to cut costs?

One of the more disturbing trends is the elimination and/or restructuring of the online sales counselor position. From small builders to national builders, many online sales counselors are being taken away from their computer to serve as a catchall for whatever tasks need to be done. I recently had an online sales counselor tell me she was being used to deliver and install weekend directional signage! Yikes! In worst case scenarios, online sales counselors are being laid off and the leads being sent back to the on-site sales agents.

Please let me reassure you that the Internet is a sure thing and the last place you want to cut costs. Why? Consider seven reasons why the Internet is perhaps the last and best sure thing in our industry:

>> Internet usage continues to grow in popularity and regularity as the primary means to research real estate. Women overwhelmingly use the Internet as their primary research tool, as high as 94% of women who are parents or expect to be parents use the Internet regularly. For more information on women online, check out this great article "My Mommy's Online."

>> Online marketing remains the most cost effective way to spend your marketing dollars. On average one unit of walk-in traffic costs a builder anywhere from $500 to $2,000 dollars. In contrast, the average Internet leads costs only $100 to $200 dollars.

>> On average, eighty percent of Internet leads don't use a Realtor. Another cost saving opportunity! eSales are the cheapest sales you make in terms of lead acquisition costs.

>> The eLeads you receive right now are your FUTURE buyers. They are your pipeline when the market starts to turn around. If they have a bad customer service experience now, they won't be back when they are ready to buy.

>> Experienced, quality online sales counselors are hard to come by. It's worth hanging onto that person during the tough times.

>> Online sales programs need momentum to be successful. By cutting or eliminating your online sales program the momentum stops. It will take nine months to a year to get that momentum back from the day you re-start the program.

>> Perhaps most importantly, it has been proven time and time again in markets across the country that on-site agents do not follow-up and close eLeads at the same rate as online sales counselors. You will lose sales if your on-site agents conduct the follow-up.

I understand that tough times require tough decisions and it's hard to know where to make cuts. Think long and hard before you cut back or dismantle your Internet program. You may get some short term gain from the reduction in overhead, but the long term costs in reduced sales, slowed momentum and increased marketing costs far outweigh the gains. As an alternative, examine your traditional marketing costs and find ways to move those dollars to the web where you will get twice the exposure for the dollar. It's time to work smarter and not harder. You Internet sales and marketing program is the SMARTEST way to market and sell bar none.

Need help restructuring your marketing program to take advantage of the Web? Call us or register online for more information and we will be happy to help! Our team of experts can help you use the Internet to reach buyers and close sales.